Read the following passage and answer the following questions.

Nimu Ltd. manufactures toys for children below 12 years. The company implements the plan by clarifying jobs and working relationships for achieving the goal of production of 1000000 toys per month. To achieve this goal, the company divided its activities into purchase, marketing, and finance. Under the marketing department, sales and advertisement activities are grouped. The company makes a framework within which managerial and operating tasks are performed. The manager of the company extends his area of operations as without it, his activities would be restricted to only what he can do.

Which of the following is the ideal situation for the company Nimu Ltd?

Authority = Responsibility

The correct answer is option 1- Authority = Responsibility.

An important consideration to be kept in view with respect to both authority and responsibility is that when an employee is given responsibility for a job he must also be given the degree of authority necessary to carry it out. Thus, for effective delegation the authority granted must be commensurate with the assigned responsibility. If authority granted is more than responsibility, it may lead to misuse of authority, and if responsibility assigned is more than authority it may make a person ineffective.