This article may be unbalanced towards certain viewpoints. Please improve the article by adding information on neglected viewpoints, or discuss the issue on the talk page.(August 2010)
Managerial prerogatives are also referred to as the functions and rights of management,[1] is considered as the discretion of the employer or manager on how to manage its business, not bound by collective bargaining.[2] It is a term that easily leads to widespread misunderstanding. Different circles have different interpretations of this term. When it is used in the trade unions circles, is perceived as a user's support for unilateral management power and can cause protests.When used by the management circle, It is considered as exclusive right and control right without interference.[1] Managerial prerogatives give employers or managers the power to control the direction in which their businesses are heading. Employees basically do not have this power.[3]
Managerial prerogative is that employers and managers can freely supervise according to their own judgments. Its effective exercise includes recruitment, employment, job distribution, job supervision, working methods, working hours, employee rules and regulations, employee supervision, employee transfer, employee sanctions, layoffs, employee dismissals, employee recalls, and other employment matters.[4] Its limitation lies in the policies, rules and regulations of different countries so that managerial prerogative must be fair and reasonable.[5]
Manager's right to manageedit
The rights of managers include abiding by professional ethics, complying with company regulations and industry laws, communicating organizational values, setting goals, implementing strategies, and conducting risk management. For employees, managers have the right to manage recruitment, performance evaluation, task allocation, punishment, dismissal. Managers are also responsible for providing a safe and healthy workplace for employees, actively communicating with employees, ensuring that employees are treated fairly, and providing training and professional development opportunities for employees.[6]
Management views on prerogativeedit
The two streams of argument from management relate the primacy of market rationality. They are:
Property rights, in that the rights that management has had over their capital assets incurs this level of control and;
Economic efficiency, the argument that it is better to let management manage as they see fit for the benefit of all stakeholders.[7]
Both views center on the idea that more efficient work will occur if managers are allowed to use their prerogatives.[8]
Trade union views on prerogativeedit
Many workers and their representatives do acknowledge part of management’s role to manage. They often do not describe it as a right of management, but as part of the job managers are paid to do. Management use this term to defend their role, but also trade unions use this time to place an element of responsibility upon management.[7] The function of trade unions is to place limits on managerial prerogatives.[9] Trade unions protect employees by referring to their worker’s rights as well as their human rights. Without trade unions, managers have full power to practice their rights. Recent laws are imposing rules that employers have to use their prerogatives with good faith.[8]
Practice of managerial prerogatives in different countriesedit
Australiaedit
In Australia, the industrial relations policies of the Howard government during its initial terms increased the exercise of managerial prerogative by reducing the scope and importance of awards, encouraging decentralized enterprise bargaining, and reducing the power of unions and promoting individual contracts.[10]
United Kingdomedit
In the UK, there are constraints on managerial prerogative rights mainly pertaining to the right of firing employees. In order to successfully dismiss a worker, the manager must provide sufficient evidence that his decision to fire was fair to all parties. This is judged in a court of law.[11]
Johnstone v Bloomsbury: Health Authorityedit
Johnstone v Bloomsbury: Health Authority is an example of managerial prerogatives used in an abusive manner. Dr. Johnstone had been asked to work for a set time per week and also be ready when asked to work for additional hours. This was abused when his manager asked him to work inhumane hours, affecting Johnstone’s health and well-being. His manager was able to impose these hours on Dr. Johnstone but there are human rights in the UK that protect Johnstone and his health.[12]
Finlandedit
In Finland, there is a clear reciprocation of trust between employers and employees.[13] The employees are expected to show a certain level of subordination to the employer as well as respect secondary duties such as following instructions given to them by employers. Loyalty is also seen as an essential part of most businesses in Finland, and it is seen as a secondary duty as well.[14]
Malaysiaedit
In Malaysia, employers have the right to terminate employment under three circumstances. First, the employer has or intends to reduce or discontinue the business of the company in which the employee is employed; second, the employer has or intends to eliminate the business in the area in which the employee is employed; third, The employer has or intends to reduce or discontinue the business requirements in which the employee is engaged. In addition to the above three cases, the employer itself has the inherent right to restructure the enterprise, and no arbitration court will intervene unless the reorganization is proved to be conducted in bad faith or without reason.[15]
Unfair dismissal and managerial prerogativeedit
Unfair dismissal occurs when employers or managers use their prerogatives to fire employees for reasons specified by them, and these reasons are improper or insufficient to justify the dismissal. Managerial prerogatives give employers and managers the right to dismiss employees. The Unfair Dismissal Law gives employees the right to protect themselves and to claim compensation if they are unfairly dismissed. The specific prerogatives and laws vary according to the national conditions and relevant regulations of each country.[16]
^ abStorey, Dr John (1976). "Workplace collective bargaining and managerial prerogatives". Industrial Relations Journal. 7 (4): 40–55. doi:10.1111/j.1468-2338.1976.tb00197.x. ISSN 1468-2338.
^Heery, Edmund (2017). A dictionary of human resource management. Mike Noon. Oxford: Oxford University Press. ISBN978-0-19-182782-2. OCLC 991851463.
^"What is MANAGEMENT PREROGATIVE? definition of MANAGEMENT PREROGATIVE (Black's Law Dictionary)". The Law Dictionary. 2012-10-19. Retrieved 2021-04-24.
^Richard, Marshall, Shelley Mitchell (2006). Enterprise bargaining, managerial prerogative and the protection of workers' rights : an argument on the role of law and regulatory strategy in Australia under the Workplace Relations Act 1996 (Cth). Kluwer Law International. OCLC 696499641.{{cite book}}: CS1 maint: multiple names: authors list (link)
^Clapp, Richard (1953-01-01). "Management's Prerogatives vs. Labor's Rights". Case Western Reserve Law Review. 4 (2): 169. ISSN 0008-7262.
^Spanner, Robert Alan. Who owns innovation? : the rights and obligations of employers and employees. ISBN0-87094-440-1. OCLC 11486472.
^ abStorey, J (1983). Managerial Prerogative and the Question of Control. London: Routledge & Kegan Paul Plc.
^Young, Stanley (1 January 1963). "The Question of Managerial Prerogatives". Industrial and Labor Relations Review. 16 (2): 240–253. doi:10.2307/2520944. JSTOR 2520944.
^Bray, Mark; Waring, Peter (2006). "The Rise of Managerial Prerogative under the Howard Government". Australian Bulletin of Labor. 32 (1): 45–61. ISSN 0311-6336.
^Tufal, A. (n.d.) 'Cases of employers' liability', Law Teacher, (), pp. 1-18 [Online]. Available at (PDF). Archived from the original (PDF) on 2012-11-19. Retrieved 2014-10-29.{{cite web}}: CS1 maint: archived copy as title (link) (Accessed: October 16, 2014).
^European industrial relations glossaries (2009) Employer's Managerial Prerogative, available at . Archived from the original on 2014-10-22. Retrieved 2014-10-17. (Accessed: 14 October 2014).
^Employer's Managerial Prerogative. 2014. [Online] Available at . Archived from the original on 2014-10-22. Retrieved 2014-10-17.. [Accessed 15 October 2014].
^Rejab, Hassan, Mumtaj Hussain, Mohammad Azam Md Desa, Md (2016). The managerial prerogative on retrenchment in Malaysia. OCLC 1025320320.{{cite book}}: CS1 maint: multiple names: authors list (link)
^Bowers, John; Clarke, Andrew (1981). "Unfair Dismissal and Managerial Prerogative: A Study of "Other Substantial Reason"". Industrial Law Journal. 10 (1): 34–44. doi:10.1093/ilj/10.1.34. ISSN 0305-9332.
Further readingedit
Kuhn, J W "Does Collective Bargaining Usurp the Manager's Right to Manage?" Journal of Occupational Medicine 2:11 1960, 570.
Jane Broadbent, Michael Dietrich, Jennifer Roberts "The end of the professions?" in The end of the professions?: the restructuring of professional work eds Jane Broadbent, Michael Dietrich, Jennifer Roberts, Abingdon, UK: Routledge, 1997: 4
October 31, 2023
managerial, prerogative, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, written, like, personal, reflection, personal, essay, argumentative, essay, that. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article is written like a personal reflection personal essay or argumentative essay that states a Wikipedia editor s personal feelings or presents an original argument about a topic Please help improve it by rewriting it in an encyclopedic style August 2010 Learn how and when to remove this template message The examples and perspective in this article may not represent a worldwide view of the subject You may improve this article discuss the issue on the talk page or create a new article as appropriate August 2010 Learn how and when to remove this template message This article may be unbalanced towards certain viewpoints Please improve the article by adding information on neglected viewpoints or discuss the issue on the talk page August 2010 Learn how and when to remove this template message Managerial prerogatives are also referred to as the functions and rights of management 1 is considered as the discretion of the employer or manager on how to manage its business not bound by collective bargaining 2 It is a term that easily leads to widespread misunderstanding Different circles have different interpretations of this term When it is used in the trade unions circles is perceived as a user s support for unilateral management power and can cause protests When used by the management circle It is considered as exclusive right and control right without interference 1 Managerial prerogatives give employers or managers the power to control the direction in which their businesses are heading Employees basically do not have this power 3 Contents 1 Managerial prerogative content 2 Manager s right to manage 3 Management views on prerogative 4 Trade union views on prerogative 5 Practice of managerial prerogatives in different countries 5 1 Australia 5 2 United Kingdom 5 2 1 Johnstone v Bloomsbury Health Authority 5 3 Finland 5 4 Malaysia 6 Unfair dismissal and managerial prerogative 7 See also 8 References 9 Further readingManagerial prerogative content editManagerial prerogative is that employers and managers can freely supervise according to their own judgments Its effective exercise includes recruitment employment job distribution job supervision working methods working hours employee rules and regulations employee supervision employee transfer employee sanctions layoffs employee dismissals employee recalls and other employment matters 4 Its limitation lies in the policies rules and regulations of different countries so that managerial prerogative must be fair and reasonable 5 Manager s right to manage editThe rights of managers include abiding by professional ethics complying with company regulations and industry laws communicating organizational values setting goals implementing strategies and conducting risk management For employees managers have the right to manage recruitment performance evaluation task allocation punishment dismissal Managers are also responsible for providing a safe and healthy workplace for employees actively communicating with employees ensuring that employees are treated fairly and providing training and professional development opportunities for employees 6 Management views on prerogative editThe two streams of argument from management relate the primacy of market rationality They are Property rights in that the rights that management has had over their capital assets incurs this level of control and Economic efficiency the argument that it is better to let management manage as they see fit for the benefit of all stakeholders 7 Both views center on the idea that more efficient work will occur if managers are allowed to use their prerogatives 8 Trade union views on prerogative editMany workers and their representatives do acknowledge part of management s role to manage They often do not describe it as a right of management but as part of the job managers are paid to do Management use this term to defend their role but also trade unions use this time to place an element of responsibility upon management 7 The function of trade unions is to place limits on managerial prerogatives 9 Trade unions protect employees by referring to their worker s rights as well as their human rights Without trade unions managers have full power to practice their rights Recent laws are imposing rules that employers have to use their prerogatives with good faith 8 Practice of managerial prerogatives in different countries editAustralia edit In Australia the industrial relations policies of the Howard government during its initial terms increased the exercise of managerial prerogative by reducing the scope and importance of awards encouraging decentralized enterprise bargaining and reducing the power of unions and promoting individual contracts 10 United Kingdom edit In the UK there are constraints on managerial prerogative rights mainly pertaining to the right of firing employees In order to successfully dismiss a worker the manager must provide sufficient evidence that his decision to fire was fair to all parties This is judged in a court of law 11 Johnstone v Bloomsbury Health Authority edit Johnstone v Bloomsbury Health Authority is an example of managerial prerogatives used in an abusive manner Dr Johnstone had been asked to work for a set time per week and also be ready when asked to work for additional hours This was abused when his manager asked him to work inhumane hours affecting Johnstone s health and well being His manager was able to impose these hours on Dr Johnstone but there are human rights in the UK that protect Johnstone and his health 12 Finland edit In Finland there is a clear reciprocation of trust between employers and employees 13 The employees are expected to show a certain level of subordination to the employer as well as respect secondary duties such as following instructions given to them by employers Loyalty is also seen as an essential part of most businesses in Finland and it is seen as a secondary duty as well 14 Malaysia edit In Malaysia employers have the right to terminate employment under three circumstances First the employer has or intends to reduce or discontinue the business of the company in which the employee is employed second the employer has or intends to eliminate the business in the area in which the employee is employed third The employer has or intends to reduce or discontinue the business requirements in which the employee is engaged In addition to the above three cases the employer itself has the inherent right to restructure the enterprise and no arbitration court will intervene unless the reorganization is proved to be conducted in bad faith or without reason 15 Unfair dismissal and managerial prerogative edit nbsp Unfair dismissal occurs when employers or managers use their prerogatives to fire employees for reasons specified by them and these reasons are improper or insufficient to justify the dismissal Managerial prerogatives give employers and managers the right to dismiss employees The Unfair Dismissal Law gives employees the right to protect themselves and to claim compensation if they are unfairly dismissed The specific prerogatives and laws vary according to the national conditions and relevant regulations of each country 16 See also editManager s right to manage Plenipotentiary General Manager Management Johnstone v Bloomsbury Health AuthorityReferences edit a b Storey Dr John 1976 Workplace collective bargaining and managerial prerogatives Industrial Relations Journal 7 4 40 55 doi 10 1111 j 1468 2338 1976 tb00197 x ISSN 1468 2338 Heery Edmund 2017 A dictionary of human resource management Mike Noon Oxford Oxford University Press ISBN 978 0 19 182782 2 OCLC 991851463 What is MANAGEMENT PREROGATIVE definition of MANAGEMENT PREROGATIVE Black s Law Dictionary The Law Dictionary 2012 10 19 Retrieved 2021 04 24 Richard Marshall Shelley Mitchell 2006 Enterprise bargaining managerial prerogative and the protection of workers rights an argument on the role of law and regulatory strategy in Australia under the Workplace Relations Act 1996 Cth Kluwer Law International OCLC 696499641 a href Template Cite book html title Template Cite book cite book a CS1 maint multiple names authors list link Clapp Richard 1953 01 01 Management s Prerogatives vs Labor s Rights Case Western Reserve Law Review 4 2 169 ISSN 0008 7262 Spanner Robert Alan Who owns innovation the rights and obligations of employers and employees ISBN 0 87094 440 1 OCLC 11486472 a b Storey J 1983 Managerial Prerogative and the Question of Control London Routledge amp Kegan Paul Plc a b Ellis A 2014 The strain between managerial prerogative and contractual principles in English labour law Available at http www workplacebullying co uk lawyouind manperog html Accessed October 14 2014 Young Stanley 1 January 1963 The Question of Managerial Prerogatives Industrial and Labor Relations Review 16 2 240 253 doi 10 2307 2520944 JSTOR 2520944 Bray Mark Waring Peter 2006 The Rise of Managerial Prerogative under the Howard Government Australian Bulletin of Labor 32 1 45 61 ISSN 0311 6336 Bowers J and Clarke A 1981 Unfair Dismissal and Managerial Prerogative A Study of Other Substantial Reason HeinOnline 10 pp 34 Online http heinonline org HOL LandingPage handle hein journals indlj10 amp div 13 amp id amp page Accessed October 15 2014 Tufal A n d Cases of employers liability Law Teacher pp 1 18 Online Available at Archived copy PDF Archived from the original PDF on 2012 11 19 Retrieved 2014 10 29 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Accessed October 16 2014 European industrial relations glossaries 2009 Employer s Managerial Prerogative available at Employer s Managerial Prerogative Archived from the original on 2014 10 22 Retrieved 2014 10 17 Accessed 14 October 2014 Employer s Managerial Prerogative 2014 Online Available at Employer s Managerial Prerogative Archived from the original on 2014 10 22 Retrieved 2014 10 17 Accessed 15 October 2014 Rejab Hassan Mumtaj Hussain Mohammad Azam Md Desa Md 2016 The managerial prerogative on retrenchment in Malaysia OCLC 1025320320 a href Template Cite book html title Template Cite book cite book a CS1 maint multiple names authors list link Bowers John Clarke Andrew 1981 Unfair Dismissal and Managerial Prerogative A Study of Other Substantial Reason Industrial Law Journal 10 1 34 44 doi 10 1093 ilj 10 1 34 ISSN 0305 9332 Further reading editKuhn J W Does Collective Bargaining Usurp the Manager s Right to Manage Journal of Occupational Medicine 2 11 1960 570 Jane Broadbent Michael Dietrich Jennifer Roberts The end of the professions in The end of the professions the restructuring of professional work eds Jane Broadbent Michael Dietrich Jennifer Roberts Abingdon UK Routledge 1997 4 Retrieved from https en wikipedia org w index php title Managerial prerogative amp oldid 1125796167, wikipedia, wiki, book, books, library,
