The concept involves the authority to direct and implement policies related to an activity. This power encompasses the ability to introduce, modify, and discontinue processes, ensuring activities align with specific standards and objectives. For instance, in a manufacturing environment, it includes the ability to modify production line settings to improve efficiency or address quality issues. It grants decision-makers the capacity to manage ongoing activities.
Exercising this authority ensures accountability, efficient resource utilization, and mitigation of risks. It facilitates adherence to regulatory requirements and promotes consistent outcomes. Historically, the formalization of this management approach arose from the need to optimize complex operations and enhance organizational performance. Its adoption allowed organizations to manage resources strategically and streamline actions.
