________ determines the superior-subordinate relationship where subordinate has to execute the order of superior.

Authority

The correct answer is option 1- authority.

Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain which links the various job positions and levels of an organization. In the formal organisation authority originates by virtue of an individual’s position and the extent of authority is highest at the top management levels and reduces successively as we go down the corporate ladder. Thus, authority flows from top to bottom i.e., the superior has authority over the subordinate.