Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

Authority
(using authority to promote productivity)
Michael J. O´Connor.- Supermarket Business, April 1994 v49 n4 p38(9)

Abstract: Authority should be viewed as a responsibility and as a tool for enhancing productivity
and achieving positive change in an organization. While it is essential for effective management,
authority can also cause the downfall of a business when it is abused and regarded as a privilege
or right. Using authority properly requires careful consideration of various elements, such as
corporate objectives and philosophy, choosing people who can wield it properly, employee
training, management accountability, worker involvement and sharing of business information.

Full Text: COPYRIGHT Howfrey Communications Inc. 1994

Last week, I looked at a piece of research on employee attitudes that included a series of
questions about the store manager. One store manager was reported to handle employee
concerns by pointing to the badge identifying him as MANAGER and asking employees, "Do you
know what that says?" After clarifying his position as boss, he reminded the employees,
"Unemployment is still high, and it isn't easy to get a job these days." That ended the
conversation.

I'm afraid that this kind of abuse of authority is not an isolated instance in our business. I'm also
sure that it occurs at levels below and above store manager. Obviously, people handled in this
manner are not any more productive than they absolutely have to be, and they leave as soon as
they can.
Granted, without authority there is chaos; yet, I am convinced the abuse of authority is a very
consistent element in corporate failures. It's probably one of the three biggest problems in our
business today. In any event, it's a very sensitive subject and the odds are you will either strongly
disagree or get angry before I'm through. But stay with me. I think the subject is worth some
emotion.
Problem Begins with Growth
Most big chains began with one store and one entrepreneur. He or she had the authority and
used it effectively -- effectively enough to open the second store, and the third, etc. As the
business grew, it was necessary to delegate some of the authority. This is where problems begin.
And with time, size, and new generations of management, these problems grow.
At this point, let me distinguish my use of the terms "responsibility" and "authority." I use the term
"responsibility" to mean the assignment of a function without authority to change that function.
Traditional works on an assembly line in a factory or stocking shelves in a supermarket are
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

assigned responsibilities. They are routine functions. After the newness wears off, they become
dull. There is no challenge, no break in the routine. This is probably why there are many mistakes
made in this kind of work. It is also most likely the reason for high levels of personnel turnover in
these kinds of jobs.

I use the term "authority" to mean the assignment of a responsibility with the right to make certain
decisions for the successful completion of that function. Also, authority frequently involves the
power or the right to direct the work of others.

The delegation of authority is important, but not without its problems. How do you analyze that
situation and help it to become as successful as possible? As I see it, seven areas need some
careful attention:

* Clarification of how the company understanding of authority fits within the

organization's corporate philosophy.
* Selection of people capable of exercising authority.
* Training and education.
* Abuse of authority.
* Management accountability.
* Information on performance.
* Involvement and recognition.
* Now let's think about these factors.
The task I have set for myself is to see if a better understanding of these areas can
be of any help in improving productivity and the quality of customer service.
Clarification
Authority must be understood. To many people, authority is a privilege. In my opinion, this is
wrong. Authority must be seen as a responsibility with the right to make certain well-defined
decisions. It is not a right to exert one's will over all others who are positioned lower on the
organizational chart. And it is certainly no mandate to exceed the scope of the decision-making
power granted as a part of a superior's current responsibilities.

It is important that those in authority have a very clear understanding of the corporate philosophy,
mission, goals, and progress. Only with this understanding can they make sure that the overlaps
and gaps involving their authority fit into the mosaic of total corporate success.

No matter how hard top management works at running a democratic company, the officers of the
company are the "big bosses." People want some structure in their lives. There is nothing wrong
with a boss, if he or she is a good boss. The problem is, there aren't enough good bosses.

One of the best bosses I know of in the retail business is Fred Meijer. Fred and his wife, Lena,
started out as clerk and checker in a little family grocery store. Today they own a chain of the
most successful hypermarkets in the United States. They operate something over 70 big stores
from 150,000 to 200,000 square feet in size. No one, including the three biggest French
2
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

operators, has been able to equal Meijers success on this side of the Atlantic Ocean. I won't
quote a dollar volume figure for Meijer because, as a privately held company, they do not need to
make this figure public, and they don't. So you'll have to take my word for it--they are big and very
successful.
One day, I asked Fred what he felt his job included now that the business had grown so big. He
answered that concerns, such as long range planning and the dignity of individuals who work in
the company, consume most of his time. I've traveled stores with Fred, and there is no question
that he practices what he preaches. The people at Meijer have dignity. You can see it in their
eyes, in the way they do their jobs, and in the way they deal with their customers.

Know Where Authority Begins and Ends

Fred Meijer has a very clear idea of what his responsibilities are and where his authority begins
and ends. He doesn't overstep these bounds. Because of this, he has a lot of very turned-on
people, ranging from his president (not a member of the family) to the newest checker in his
newest store.
One of the most capable consultants I know in the field of quality management is Linda Cooper.
She did an outstanding job of establishing a quality program at the biggest bank in Chicago. I got
interested in her work because I found a similarity between the work of a teller in a bank and a
checker in a self-service store. In most cases, both are employees with no authority. Both are at
the bottom of the corporate ladder. Even so, both handle a lot of the company's money and much
of its public relations.

In talking about individual responsibilities and authority, Linda puts it this way: "Everyone operates
in a lot of domains in life, with varying competence in each. A retail cashier can be an expert at
running a checkstand but no good on strategy (and doesn't want to learn). The company
president may be downright awkward in a checkstand (and not want to get any better). But, on the
other hand, he or she is very good at strategy. If the president treats checkers with respect for
their expertise in their field it's a much different game than if the president treats checkers as if
they were limited individuals who are 'only checkers.' It's hard for a checker to have good esteem
about being a really good checker if the president doesn't have respect for the checker's
expertise, however narrow."

Linda Cooper continues: "The problem with treating checkers as though they are lowly persons is
that they will begin to act that way. All too often, people who are very competent in running a
family, in their church, in their hobbies, or in community affairs come into the store and are
suddenly typecast as unimportant and of low competence. This is why they tune out and do their
job with a minimum of effort, instead of really getting involved and making a difference."

Sam Walton understood the importance of respecting people and involving people in their work.
Sam admitted that although they (the executives) loved to talk about their remarkable
achievements in technology, distribution, and merchandising, the relations with their employees
were the true reason for Wal-Mart's success.

3
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

Selection of Supervisors

I went on to ask Linda Cooper about her experience in the selection of first-line supervisors in the
bank. She found teller supervisors were promoted on seniority. They were not rated on their
customer service abilities. Accuracy was important, but that was about all. They were given no
training in managing people. So now, after all those years, they had authority! Many became
tyrants. I shop in a supermarket where this same thing has happened, and it's sad to see. And, of
course, the tyrannical attitudes of the head checker are passed on to the customers. Of all the
adages, saws, and sayings I have heard over the years, I think the truest of all is that your
employees will treat your customers in the same way they are treated by their bosses.

In selecting people for their first level of management in our business, I'm afraid that we give the
same priorities as do the banks. Seniority and technical excellence come first over human skills
and a well-balanced personality. Over the years, I've learned a lot from the great merchants of the
world. I've also had the privilege of reading and listening to some of the great students of
industrial psychology and the people Peter Drucker calls Social Ecologists. Let me share with you
what I have learned and what I believe are among the basic requirements for anyone taking that
first step into management:

First and foremost, the candidate must have learned to do his or her current job well. And did the
candidate take pride in his or her job.

Does the candidate have self-respect? No one can manage others if they can't manage
themselves. This is true in the entry-level jobs and in the executive suite as well. I think it's also
very important that candidates be sufficiently self-assured that they can accept criticism and ideas
from their associates.

Be sure you know how the candidate gets along with his or her peers. Popularity is not nearly as
important as respect. However, some star performers who simply don't need others usually find it
is hard to motivate those for whom they are responsible. They lack empathy. You should have a
good balance between interpersonal relations and individual ability.
What is the candidate's experience in handling change and stress? There is plenty of this at all
levels of management, including the first line in the store.
I'll leave the rest of the routine check list to you. My few points here underscore the importance of
leadership ability.

Training and Education

The best managed companies I know are spending a lot more money on training these days. But
most retailers--the great majority--don't spend nearly enough. The most successful companies
give training a position of great importance in the organization. Several of the biggest and best
have training managers in all of their big stores. It makes sense. To put an untrained front-line
manager into the store is to lower the levels of productivity and customer service to an
unproductive and erratic level. And what should they be learning? Here is just a partial list. I'm
sure you could add a lot more.

The Company Philosophy

Responsibilities of management from the CEO to the department head in the store, and how each
fits into the chain of command.
* Ways, and how to look for ways, to improve their functions in the business.
* Techniques of management.
4
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

* How to hold meetings.

* Coaching techniques.
* The importance of listening and feedback.
* Techniques unique to the department.
* Customer relations.
* Keeping records.
* Dealing with shrink.
* Man-hour productivity and labor costs.
* Using scan data.
* Merchandising the department.
* Training new employees.
* Legal aspects of personnel management.
* Managing the difficult employee.
* Sanitation.
* Company facilities outside the store and how to access them.
Some companies are now basing pay increases, in part, on the completion of company and
outside training courses. Where union contracts permit, I think this makes eminent good sense.

Begin With Good Seed

My old and dear friend, Larry Taylor, served for over 30 years as a consultant to first SMI and
then FMI. His field was training and motivating people. He had a good way of stressing the
importance of continuing education in business. Larry would say, "If you want to plant a really
good garden, you begin by buying good seed. And if you're smart, you do not throw the seed on
the ground and challenge it to grow. Even a good seed needs water and feed and care. Yet all too
often management will hire good people and then leave them to sink or swim." I very much agree
with Larry. As a matter of fact. I believe that a good practical training program is worth more,
dollar for dollar, than any computer program or promotional scheme that I have ever seen.

Education is another matter. Let me clarify what I consider to be the difference between education
and training. Education helps people understand concepts, find resources to help one reason and
use good judgment. Training is teaching skills: how to operate a machine or how to handle an
interpersonal relationship. Both education and training are needed, especially for those
employees we want to keep in the business. For positions from store manager and up, I think
education is essential.

Big stores are big businesses, each in their own right. The successful manager of a big store must
constantly use his best judgment. When the economy dictates that cutbacks are necessary, the
manager must decide where to cut. The intelligent answer to that problem will vary on a store-by-
store basis. No one should drive away the customers to maintain one's price-earnings ratio. Local
competitive conditions also require good and quick judgments. Local promotional opportunities
cannot be easily judged by a corporate bureaucrat 50 miles away. Certainly, product mix can be
helped by research and analysis at headquarters. But, headquarters is dealing with what has
happened, not with what can happen. What can happen requires good, on-the-spot judgment.

Education has another important value. Learning improves the mind, just as exercise improves
the body. It has a powerful effect on the morale and the productivity of the individual. And here I
am not talking about the esoteric subjects. What I have in mind are courses on management
techniques and concepts, interpersonal relations, basic financial concepts and practices. You ask,
"Finances?" Yes, finances.
5
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

The Bristol Channel Shipyards Case

There is a case taught at the London School of Business entitled, "The Bristol Channel
Shipyards." This is a true story about a shipyard in the U.K. The business was typically autocratic
and equally typically fraught with labor troubles. Conflict between management and labor had
reached the stage where ship owners would no longer trust their vessels to the Bristol Channel
Shipyards. Ships could be tied up for months in a strike. As a final desperate move, the owners
decided to take a manager from the ranks. Among many other things, the new manager set up a
school for the workers. One of the subjects taught was finance!

The effects of the new management's program were outstanding. The shipyard was saved and
business got much better. According to the professor who conducted the study and wrote the
case, it was nothing short of amazing to hear workers in the pubs, after work, arguing the subject
of debt to equity ratios and what the company needed to get the capital necessary to handle a
new large piece of work. By sharing knowledge with the workers in the shipyard, conflict was
reduced, and, in most cases, management and labor started working toward a common goal.
Translated to our business, the story of Bristol Channel Shipyards has an important lesson. In
these days of constant and, at times, unreasoning pressure from investors for greater returns,
wouldn't it be wise for the front line manager to understand the reasons for their management's
demands? It seems to me this kind of knowledge could change an unwilling and unhappy store
manager into an active cooperator, well motivated to help achieve the necessary corporate goals.
Where Management Education Is Needed
Managers' education is also a strong antidote for "manager burnout." Most cases of what has
come to be called "burnout" are a mixture of boredom and hopelessness. Education breaks
boredom and renews hope. Here are some of the areas where management education is needed:

The successful manager of today and the future must have what Peter Drucker calls "trained
perception." A manager needs to be aware of the financial pressures produced by today's market
system.
A manager needs to understand how many legal issues can be perilous for a business today.
A manager needs to know what new technical developments exist, their cost, and how they might
help him to do a better job.
A manager needs to understand research and how to use it.
A manager needs to understand a broad variety of management concepts.
And probably most important of all, a manager needs to see himself as a person who is
continuing to grow and understand the world around him.
The store manager does not need to be a financial expert, a professor of business management,
or a technocrat. But he does need to know enough so that he can understand and use the
services of professionals in those areas where and when they are needed.

6
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

Abuse of Authority
I wish this section were not necessary. But after much internal argument, I have come to the
conclusion that leaving it out would be irresponsible. Some people are compulsive about drinking.
Some people are compulsive about smoking, and some people are compulsive about authority.
The buyer-merchandiser who is too busy to get to the stores or to listen to the store managers
and yet uses authority to make automatic distribution is one example. That buyer has no system
for listening to store management. This, in my opinion, represents an abuse of authority.

Still another serious and consistent abuse of authority is the failure of operations managers to
delegate authority to their store managers. This does great damage to the company. What follows
is a case in point. And if I went to my friend, the CEO of the company in question, I know he would
be convinced I was wrong.

Recently, I went to visit a man with whom I have worked in the past and know to be an
outstanding store manager. He's probably the best I have ever known. He was preparing to look
for another job. I asked him why. This manager opened the store in which he still works. The store
is large and, because the market is small, no other stores were planned for that area. For the first
six years after the store opened, it was owned by independent investors. The manager was given
the authority to choose merchandise, price within an established formula, and promote locally.
When I was last privy to the figures, this store was doing close to $1 million a week. The store had
a 5 percent labor cost. It was a very clean store. It had a high level of customer service and it was
showing a 40 percent return on investment!
For the past two years, the store has been owned by a large retail company headquartered 100
miles away. Today, profits have declined, sales are off, and the manager is ready to leave. The
reason is authority. The headquarters has removed all authority from that store manager. His
comment to me was that he was very well paid, but now had to wait for a fax from headquarters
before he could take any action. That's too bad!

Small "Formula" Stores Different

Now you may argue that ALDI has done an excellent job of building a big and successful business
without giving authority to its store managers. This is true. But there are good reasons why this is
true. First of all, ALDI stores are small "formula" stores. An ALDI can be installed with a minimum
of expense. Labor costs are low. They require a minimum volume to break even. They seldom
have long, expensive leases. If the formula doesn't work in an area, it can be moved easily and
inexpensively.

The 25,000 to 100,000 square-foot store is an entirely different matter. Leases are long and
binding. Labor expenses are high. Traffic must be high if the store is to be profitable. The cost of
shutting down and moving would be extreme, if that were possible at all. Today, no big store can
run at maximum effectiveness on a fixed formula. It must adapt its selection and its service to the
market it serves and to the competition in that market area.

Row Boat or Ocean Liner?

If ALDI is a row boat, the new large stores are ocean liners. ALDI can be successfully centrally
controlled; if it fails, there is no great loss involved. The big store cannot be effectively controlled
by a buyer-merchandiser reading mountains of print-outs in headquarters. And does this logic
apply to category management as well? I'm afraid it does, if store management is not represented
7
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

on the team. A person who runs a store doing $25 million to $50 million a year with many
variables and small margins cannot be stupid. That manager's knowledge of employees,
customers, and product movement is more current than anyone else's in management; it has to
be.

And is this imbalance between store and headquarters limited to the buying and merchandising
side of the business? I'm afraid not. The operations executive who demands a clean store and
then cuts the labor budget without explaining how the store manager might achieve such a
miracle is equally guilty of irresponsible management and the abuse of authority.

If you think O'Connor is out of bounds and "off his rocker," please ask your store managers about
their problems with automatic distribution, over which they have no input and no control. Ask them
how often they receive orders in which demands for production conflict with budget controls
without receiving any coaching on how to achieve the new, and seemingly impossible, goals. In
the game of baseball, there used to be a saying that the best technique for a poor umpire was to
"call 'em tough and walk away fast." I don't think this will ever work in our business, but a lot of
people have tried it.

As a part of each manager's and each executive's responsibility and authority, it is necessary to
think through new demands and then be prepared to coach the associates on how to realistically
achieve those goals. To me, managers and executives who fail in this area are nothing more than
loose cannons on the main deck of the business.

Management Accountability

Top professional meeting managers research their meetings, and the best of those managers
share the ratings with the speakers. I appeared on a platform recently, and the manager of that
meeting shared the ratings with me and the other speakers. I was in the top 10 percent, but I
wasn't the best. That bothered me and caused me to think about my contribution to that platform
and how it could have been better. That criticism helped me. I think I could have a shot at the top
rating next time.

Recently, I have joined the staff of the graduate school in one of this country's best universities. At
the end of each term, the students of that university are asked to fill out a rating sheet on each of
their professors. There were 12 structured questions and 3 unstructured. Here is what they asked:

Did the instructor clearly articulate course goals?

Did he organize the course to achieve those goals?
Did he explain difficult concepts, methods, and subject matter?
Did he encourage students to participate?
Did he make himself accessible to students?
Did he evaluate student work in fair and appropriate ways?
Did he stimulate student interest?
Did he present subject matter in challenging ways?
Was it a valuable learning experience?
Was the instructor enthusiastic in his communication?
Overall, how would you rate this instructor?
Overall, how would you rate this course? (Possible ratings for the above included poor, below
average, average, above average, and good.)
What were the instructor's main strengths?
8
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

How might this instructor improve his teaching effectiveness?

Additional comments?

A student was designated to pick up the evaluations and take them to a drop-off point for
processing. Anonymity was assured.

I received high ratings, which pleased me. But really more important, I received some criticism in
response to the "how might this instructor improve" question that will help me to be a better
teacher next year.

Why Not Use A Similar System In Retail?

Why shouldn't clerks rate their department heads? Why shouldn't department heads rate their
store managers? And why shouldn't store managers rate supervisors, operations managers, and
buyer-merchandisers? I am not talking about a popularity contest, but rather, a specific critique on
how that particular manager functioned in the eyes of his or her subordinates. The questions used
by the university are not too far off the mark for our business.

This all goes along with the idea that to be a responsible manager of people, one must be
accountable for one's actions. The Soviets had no such arrangement with their politicians or their
managers. Today Russia stands as a monument to failed autocratic management, as do a lot of
our former large businesses in this country.

Information
A lot of people in the business are very secretive about sales and operating figures. As far as I
can tell, the only people who are kept in the dark are their own employees. Competitors know.
The man who delivers the bread knows. The man who delivers the milk knows. The man on the
armored car who picks up the money knows. Our business exists in a "fish bowl." I think most
companies hurt only themselves by keeping sales figures from their employees. This
phenomenon has interested me for a long time.

People in the Western world are oriented to statistics. This is especially true in North America.
Doesn't it make sense to make store statistics a part of work motivation? Why not post,
somewhere in the work areas, store traffic data comparing this week to the same week last year?
Why not post weekly store and departmental sales compared to a year ago? Shocking? But why
not? To achieve goals, to be responsible, and to use authority effectively, one needs information.

Feargal Quinn (SuperQuinn, Dublin, Ireland) owns his business outright. There are no partners
and no stockholders. He doesn't have to tell anyone anything about his profits. Yet every week,
the executives at SuperQuinn go to each store with sales and profit information. They tell every
employee, both part time and full time, the volume and the profits of the company. They get the
same information for the store and the department in which the employee works. For SuperQuinn,
sharing information works and it works very well.
9
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

Involvement and Recognition

There isn't the slightest doubt that we all work best when we feel involved. The employees at
SuperQuinn are a good example. But how do you involve a clerk who's been in the company for
two months and spends his or her days stocking shelves? The Japanese learned how to handle
this problem. No one works alone. Everyone is part of a group or team.

In the Deming concept, an individual in a job without authority or with very limited authority can
also be a part of an "interdisciplinary" team set up to study problems that fall across several
departments. The purpose of these teams may affect the overall welfare of the company. Properly
nourished, the collective wisdom of a group is impressive. It can overcome internal problems
while, at the same time, giving the stock clerk and other workers without authority a feeling of
belonging and an understanding of what the company is all about. If you want more information
about the dynamics of groups, I recommend Mary Walton's excellent books, The Deming
Management Method and Deming Management at Work (published by The Putnam Publishing
Company, New York, NY, and available in paperback).

Suggestion systems are also an effective way to encourage the involvement of entry level
employees. This old system works only if each suggestion is recognized and commented on.
Some companies also give annual awards for participation and bonuses for suggestions that have
made material contributions to the company. The main caution here is don't put the suggestion
boxes in stores and then forget them. This can do more harm than not starting such a system.

To Manage, You Have to Listen

The caution about suggestion boxes calls to mind a theory of mine: You cannot manage anyone
you can't listen to. A person who cannot or will not listen to you can only make you angry.
Depending on what you think about that person, your feelings can range from mildly miffed to
downright mad. In any event, not listening to someone is a bad way to establish a relationship.

Research may also suggest better ways to involve and recognize employees. Andersen
Consulting is currently doing a considerable amount of research on clarifying employee attitudes
about their jobs and what the employees consider necessary to help them do a better job. This
may well become an important new device for improving productivity and reducing turnover of
entry-level personnel. Andersen Consulting also is developing systems to give consumer
feedback to store personnel, so that they can measure their own progress.

Continuing education is an important way to keep entry-level and first-level managers involved and "turned
on." Cornell University has an excellent home study program that teaches the fundamentals of mass
merchandising, called the Food Industry Management Series. A complete catalog of the course offering,
including registration information, is available by contacting Cornell University, Home Study Program, 247
Warren Hall, Ithaca, NY 14853-7801; telephone 607-255-3028; fax 607-255-9984.

For upper-level store personnel, there is a highly respected Food Industry Management Program at the
University of Southern California in Los Angeles. Courses concentrating on retail management are offered
in a one-year certificate program. Food Industry Management courses on "Organizations" and "Advertising
and Promotion" may also be applied toward a two-year MBA program there. (Contact Joan Ewing, Assistant
Director, Food Industry Management Program, USC, HOH 400, Los Angeles, Calif. 90089-1421, or
telephone 213-740-5585.)
Michigan State University also offers excellent undergraduate and graduate degrees in the food business,
including courses in manufacturing, wholesaling, and retailing. The undergraduate program, entitled Food
10
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024
 Cuaderno de Lecturas Selectas en Inglés para Dirección y Liderazgo

Industry Management, is offered jointly through the College of Business and College of Agriculture and
Natural Resources. In addition, the University's MBA program offers a specialization in Food Marketing
Management. (Contact John W. Allen, Department of Marketing and Logistics, N302, North Business
Complex, Michigan State University, East Lansing, Mich. 48824-1122 or telephone 517-353-6381.)

Summary
Authority can be a dangerous thing. It can cause real damage if it is seen as a right or a privilege. When
seen as a responsibility, authority used can be a positive force in any organization.
To have fixed responsibilities without authority to make any decisions becomes a dull routine.
Dull routines lead to boredom, mistakes, poor profitability, and high levels of employee turnover.
The proper use of authority begins with a clear understanding of what the company wants to accomplish
and what each employee's role is in accomplishing the corporate goals. In this case, accomplishment deals
with corporate character, principles, and responsibilities, as well as profits.
It is very important that the right candidate be chosen for the first levels of promotion. This is where
authority begins. Technical skills aren't enough. Although very important, technical skills must be balanced
with human skills.
No one in the retail business can afford to put any employee on the floor of the store without good training.
This should be one of the first responsibilities of those in authority.
Continuing education for store managers and executive staff is essential for the continuing success of a
retail organization. And one of the most important elements of education should be the proper use of
authority.
Everyone in authority should be accountable. It can make authority more legitimate. It can also help each
individual grow and improve.
Information is essential if people are to do their best work. Those in authority need to share facts about the
company's progress with all employees on a regular basis. By so doing, a team spirit is developed and
productivity improved.

Need To Be "Somebody"

The fact of the matter is that retailing is a labor-intensive business. People are our biggest
expense. If authority is properly used, people work well together and are productive. And to be
productive, everybody needs to be "somebody." Drucker wrote about this in 1932 in his book The
Future of Industrial Man. He explained that to be productive, a man must feel he has status, that
his work has a worthwhile purpose, and that the decisive powers in his life are legitimate powers.
And, that's what this little essay is all about.

Michael J. O'Connor, special retailing consultant to Arthur Andersen & Co, S.C., specializes in
corporate philosophy, marketing policy, and strategy. He was recently named Teacher of the Year
at the University of Southern California, where he spends part of the year teaching a course for
retailing managers. His background, reading, and restless worldwide travels have given O'Connor
a unique knowledge of retailing markets, conditions, companies, and people. He consults with
retailers worldwide from an office in Wilmette, Illinois.

Bus. Coll.: 77W5103 Article A15425805

References
1. Bass, Bernard, Stogdill's Handbook of Leadership: A Survey of Theory and Research, New York: Free Press, 1989.
and
Bass, Bernard, From Transactional to Transformational Leadership: Learning to Share the Vision, Organizational
Dynamics, Winter 1990.
2. U.S. Army Handbook (1973). Military Leadership.
3. Bolman, Lee and T. Deal (1991). Reframing Organizations. San Francisco: Jossey-Bass.
4. Blake, Robert R. and Jane S. Mouton (1985). The Managerial Grid III: The Key to Leadership Excellence. Houston:
Gulf Publishing Co.
5. James M. Kouzes & Barry Z. Posner (1987). The Leadership Challenge. San Francisco: Jossey-Bass.

11
U. N. A. C. A. R. Facultad de Ciencias Económicas Administrativas feb-2024