Modelling and analysis of authority‐responsibility relationships in an organizational system—a physical system theory approach

In: Systems research, Band 7, Heft 4, S. 255-271

Abstract

AbstractThis paper is an attempt to apply the principles and concepts of physical system theory to model multi‐level hierarchical organizational systems. The modelling can be carried out for both the official organizational system and the operating or problem‐solving organizational system derived from task processes. The graph theoretic approach is used to model authority‐responsibility relationships existing in the organizational network. A manager at any level is conceptualized as a multiterminal component interacting between the superior and subordinates, representing each interaction as a two‐terminal component. The unit authority across two levels is different and hence taken as an 'across variable' while the responsibility, which flows through the organization, is taken as a 'through variable'. An operational and pragmatic concept is provided to measure the authority and responsibility based on facts as well as opinion. The analysis has been carried out for a hypothetical illustrative organizational system with three levels. The model may prove to be of help in analysing the inconsistencies in authority‐responsibility relationships which can be used for improving the organizational design.