Functional Authority

Functional authority is the right that is delegated to an individual or a department to control specified processes, practices, policies, or other matters in relation to activities undertaken by persons in other departments. If the principle of unity of command were followed without exception, authority over these activities would be exercised only by their line superiors. But numerous reasons-including a lack of special knowledge, a lack of ability to supervise processes, and the danger of diverse interpretations of policies-explain why these managers are occasionally not allowed to exercise this authority. In such cases, line managers are deprived of some authority. It is delegated by their common superior to a staff specialist or to a manager in another department. For example, a company controller is ordinarily given functional authority to prescribe the system of accounting throughout the company, but this specialized authority is really a delegation from the chief executive.

Functional authority is not restricted to managers of a particular type of department. It may be exercised by line, service, or staff department heads, but more often by the latter two because service and staff departments are usually composed of specialists whose knowledge becomes the basis for functional controls.