This implies power relationships based on the acceptance of managerial power by subordinates and society – this use of power is termed the ‘legitimacy’ of management – which Max Weber called its ‘authority’. All organisations have some form of structure, based on ‘the established pattern of relationships among the individuals, groups and departments within it’ There are two structures -- a vertical structure of authority and responsibility where clear limits of financial authority exist, and a horizontal structure of groupings of activities designed to use the resources towards goal-attainment. The horizontal structure can be changed from time to time, to suit the environment (see later sections.
