Limits of Authority
Understanding Limits of Authority
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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.
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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.
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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
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Learn how to make accurate decisions within your limit of authority, such as resolving general enquiries, applying company policies, and proceeding with routine tasks.
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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.
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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
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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.
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Practise courtesy and discretion when escalating issues to a superior. Demonstrate respect for your colleagues’ roles and responsibilities.
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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
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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.
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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.
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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.