The right to acquire action of others is known as authority. There are various types of authority like formal authority, acceptance authority, authority by situation, positional authority and technical authority. The authority, which originates from the placement of a person in the organisation is called formal authority. Since authority originates from the position of persons in the organisation structure, it is also termed as positional authority. It is the official power, which comes from the positions in the office organisation. In formal authority, authority stems from the top and is transmitted downwards through the line by the help of delegation of authority. The authority is highest in the hands of the chairman and lowest in the hands of first line supervisors.