Which of the following refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it?

Authority

The correct answer is option 2- 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 organisation. Authority also refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.  Authority relationships helps to maintain order in the organisation by giving the managers the right to exact obedience and give directions to the workforce under them. Authority determines the superior subordinate relationship wherein the superior communicates his decision to the subordinate, expecting compliance from him and the subordinate executes the decision as per the guidelines of the superior.