ABSTRACT

Theoretically, organizations are designed in such a way that managers, what­ ever their title might be, control them. It is the managers who make binding decisions and it is they who make the choices, while the other participants are those who realize them. It is well known that this state of affairs is made pos­ sible by the principle of the delegation of authority, namely, by granting legiti­ mate power to the various managers in the organization. Such a delegation is made in the form of unequal distribution of power, which leads to the typical hierarchy of authority in organizations. Throughout this hierarchical manage­ ment system, legitimate power in the form of authority is exercised from the top of the organization down to the bottom.2