Which one of the following is not true for Authority?

Correct option is D

Authority is primarily associated with formal organizations and the hierarchical structure of an organization. It refers to the legitimate power or right of a superior to command and direct subordinates to perform certain actions.
However, authority does not serve as a basis for informal organizations. Informal organizations emerge spontaneously based on social interactions, common interests, and personal relationships among individuals within a formal organization. In informal organizations, authority is often bypassed or diluted, and influence is exerted through social connections rather than formal positions of power.
Therefore, option (d) is not true for authority.