Formal Authority

Formal authority refers to the official power granted to an individual through their position or role within an organization or institution. It is the legitimate right to make decisions, give orders, and expect compliance because of the formal hierarchy. For example, a manager has formal authority over their team, and a CEO has authority over the entire company. This authority is derived from organizational rules, policies, or laws, and it provides clarity on who is responsible for leading and making decisions within a structured setting.