Definition
Authority is the power of a person or organisational body to take specified actions or make statements on behalf of an organisation.
Human Explanation
It identifies who is permitted to make a particular Decision, sign a document or otherwise act for the organisation.
Why it Matters
Action without proper Authority can expose the organisation and the individual to legal and operational consequences.
Conceptual Boundary
Authority does not automatically make a person accountable for every consequence. Its source, scope and effect depend on governance arrangements and applicable Law.
Practical Perspective
Before signing a Contract or making a material Decision, confirm both the source and the limits of the person’s Authority.