Authority refers to the amount of power or discretion of an individual or job-holder to make decisions within an organisation. In a formal organisation, the scope of the authority of each manager is decided by his position within the organisation. Authority within a formal organisation is delegated from the ‘top down’.

Responsibility is an obligation to make sure that something gets done. If the actual result or outcome is disappointing, the person responsible ‘takes the blame’. In a formal organisation, managers are responsible for an aspect of the organisation’s performance. They are accountable to their superiors for their actions and results.

Authority is delegated through the management hierarchy. Responsibility cannot be delegated. A senior manager might delegate some authority to a junior, but remains responsible for the results and performance of the junior.