Managerial Prerogative Essay

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Managerial Prerogative Has Gone Too Far?

Whenever an organization is founded and the objectives for its existence have been established, the founders and management of said organization are expected to ensure the continuity, viability, and resilience of the enterprise. This is done via the allocation of needed resources (i.e. capital, human, financial, etc.) and formulation of strategies in order to achieved set and target organizational goals. Once operational, there are other duties, responsibilities, accountabilities, rights and privileges management can and must exercise to achieve continued operational success and efficiency. One of these management principles or concepts is known as managerial prerogative, which "includes the right to organize operations and methods of working, issue detailed instructions on the circumstances in which work is performed, and take in matters relating to working hours in so far as these are not rigidly regulated by collective agreement (Eurofound, 2009)." Often, managerial prerogative is institutionalized in organizational policies and protected by statutes and regulations. However, there have been cases whereby managerial prerogative has been abused or used to cover up the inefficiencies and poor decision-making of the powers that be in the organization. These cases are proofs that managerial prerogative has gone too far and need to be curtailed before it cause undue harm to the organization and the members therein or to the point of breaking the law.

Managerial prerogative is a right and privilege of any employer to regulate all aspects of the organization, but like all rights and privileges, it is not absolute. Further, since managerial prerogative is protected by statues and regulations, "it follows that [it] extends only to constitutionally permissible managerial objectives (Rosenthal, 2008, p. 39)." Aside from the protection this right has based on law, there is the "managerial justification for prerogative resting upon property-rights ownership which must be protected and upon legal enactment which does in fact make them (the management) responsible for the company's activities (Storey, 1983, p. 105)." Certainly, if this prerogative is not exercised by the management of the organization and the entity falters, then those at the helm thereof are responsible and answerable should the organization goes down.

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But as earlier mentioned, managerial prerogative as an employer right and privilege is not absolute. For instance, it is not possible for an employee to place at another person's disposal or surrender, through the contract of employment, his or her essential personal fundamental rights as granted constitutionally. These essential rights apply, inter alia, to life, health and, to a certain extent, personal liberty. (Eurofound, 2009) Thus, management in any organization should do well to know the limits to their managerial prerogative to avoid brushing with certain provisions of the law. Unfortunately, managerial prerogative has been used several times as an excuse to the decisions made by and in the organization.

By using managerial prerogative in covering up for some decisions made, it is clear that an abuse has taken place and the use of the right has gone too far. For instance, it is not unheard of especially during economic crisis or recession to lay-off employees to "supposedly" ensure the continuity of the business. When this decision by management is questioned, the first defense management puts up is that "it is a management prerogative to do so!" Whenever radical changes are instituted in an organization and the changes are faced with resistance; instead of managing the resistance, the response would always be "management prerogative." In such circumstances, both….....

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