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Concepts / Formal authority

Formal authority

Formal authority is the right to decide. It specifies who may determine a decision even when another person or system recommends otherwise. This right does not guarantee effective control over the outcome.

Updated: 19 September 2026

Literature concept

Hypothetical example

A manager approves the order; the AI recommends an option.

Illustrative example

Important distinction

A formal approval right is not the same as effective control over which alternatives are considered.

Question for managers

Does approval allow effective disagreement?