Which statement correctly contrasts formal and informal authority?

Which statement correctly contrasts formal and informal authority?

• A. Formal authority is based on relationships and expertise, not the job title.
• B. Formal authority is official power granted by the organization through position.
• C. Informal authority is determined by job title.
• D. Informal authority is the same as line authority.

Answer: (B)

In this contrast, formal authority is official power granted by the organization through your position in the hierarchy. That means the authority to direct others, make decisions, and enforce rules comes from your job title and role, not from personal influence. This distinction is why the statement is correct: it clearly identifies the source of formal authority as organizational authorization tied to a position. Informal authority, by contrast, arises from factors like expertise, experience, credibility, and relationships, not from a formal job title. So it’s possible to influence others without formal power. The other ideas mix these sources or attribute formal characteristics to informal power, which isn’t accurate—for example, job titles don’t determine informal authority, and line authority is a formal channel, not informal influence.

In this contrast, formal authority is official power granted by the organization through your position in the hierarchy. That means the authority to direct others, make decisions, and enforce rules comes from your job title and role, not from personal influence. This distinction is why the statement is correct: it clearly identifies the source of formal authority as organizational authorization tied to a position.

Informal authority, by contrast, arises from factors like expertise, experience, credibility, and relationships, not from a formal job title. So it’s possible to influence others without formal power. The other ideas mix these sources or attribute formal characteristics to informal power, which isn’t accurate—for example, job titles don’t determine informal authority, and line authority is a formal channel, not informal influence.