Limits of Authority

Understanding Limits of Authority

  • Familiarise yourself with the concept of limits of authority. This refers to the restrictions placed on employees regarding the decisions they can make and actions they can take.

  • Recognise that an individual’s level within a company hierarchy usually affects their limit of authority. Higher-ranking employees generally have more authority to make decisions than those lower down.

  • Understand that the purpose of these limits is to maintain control within a business, ensure decisions made are accountable, and avoid potential misuse of authority.

Exercise of Authority

  • Learn how to make accurate decisions within your limit of authority, such as resolving general enquiries, applying company policies, and proceeding with routine tasks.

  • Be aware that going beyond your given authority may require approval or authorisation from a superior. Make sure you understand the protocol for seeking such approval.

  • Recognise situations where a decision or action exceeds your authority. For example, issuing refunds, offering discounts, or making commitments on behalf of the company may need to be escalated.

Communicating and Escalating Issues

  • Understand the importance of effective communication when escalating issues within an organisational hierarchy. Keep people informed about the issue, why it’s important, and what’s being done to resolve it.

  • Practise courtesy and discretion when escalating issues to a superior. Demonstrate respect for your colleagues’ roles and responsibilities.

  • Be prepared to justify the need for escalation. If an issue falls outside your authority, be ready to explain why it requires higher-level attention.

Reviewing Limits of Authority

  • Acknowledge that these limits should be reviewed regularly. This is to ensure they reflect changes in the business environment, organisational structure, or an employee’s role.

  • Encourage feedback and discussion about whether current authority levels are enabling you to give the best customer service possible. This can help identify necessary changes.

  • Remember that a well-managed organisation recognises the importance of adjusting limits of authority to meet the evolving needs of the business and serve customers better.