There are 3 types of management authority such as:
- Authority is based on the personality and dynamism of the leader.
- Seen as a superman: political leaders, eg: revolutionary movement-Napoleon, Gandhi, Nelson Mandela, Castro, etc. Five qualities of charisma: self-confident, inspirational, articulate, revolutionary and supportive.
- Problem is succession-unlikely to be another charismatic to take over, abuse of power?
- Authority is based on precedent and loyalty, family business, monarchy, feudalism or patrimonialism, dependent on lord or leader, authority is fixed by custom.
- Problems: eg. promotion due to favoritism notability, decisions made on basis of what we’ve always done.
- Rational-like a machine with all parts working together to achieve specific goals.
- Legal-authority based on rules and procedures.
- Perfect structure not weakened by the unpredictability of charismatic leader or traditional policies that are no longer efficient, rules and procedures are kept is all important.
- Problems: basic of public sector bureaucracies, red tape, centralization of services inefficiency.