What is the definition of authority in a business context?

In a business context, authority refers to the power vested in an individual to instruct subordinates or make decisions within the organization. This definition encompasses the ability to influence others' actions and the capacity to allocate resources and dictate the course of action in various scenarios. Authority is essential for effective leadership, allowing managers and leaders to enforce policies, direct operations, and establish accountability in achieving organizational goals.

While monitoring performance, creating an organizational structure, and developing team skills are important aspects of management, they do not encapsulate the broader concept of authority itself. Authority is fundamentally about the ability to guide and make decisions that affect the organization and its members.