Which of the following statement is incorrect?

Responsibility is the obligation of superior to subordinate

The correct answer is Option (3) - Responsibility is the obligation of superior to subordinate.

* Delegation refers to downward transfer of authority- This is correct. Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre-requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative. Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do.

* Authority is the right of an individual to command his subordinates- This is correct. 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.

* Responsibility is the obligation of superior to subordinate- This is incorrect. Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior– subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Thus, responsibility flows upwards, i.e., a subordinate will always be responsible to his superior.

* Accountability flows in upward direction- This is correct. Accountability empowers an employee to act for his superior but the superior would still be accountable for the outcome. Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work.