The Importance Of Managerial Flexibility

Register to read the introduction… Following the review of penalty rate provisions, amendments to the flexibility clause were sought after with particular attention paid to the manufacturing industry. Greater flexibility was requested in the taking and cashing out of annual leave in a further attempt to enhance cost cutting initiatives through control measures which ultimately leads to the underlying concept of elevated managerial prerogative.
Managerial prerogative may be defined as management’s unqualified authority to exercise its discretion in certain areas under the belief that they have exclusive rights to make decisions and therefore resist any interference with that control (Storey, 1983). Sheldon & Thornthwaite make reference to managerial prerogative in the defensive context through aggressive industrial action which has historically been used as a means of strengthening managerial prerogative. The 2011 Qantas lockout serves as …show more content…
Productivity is the economic factor stemming from the adequate use of resources; productivity is essentially the measure of achievement through the amount of output that is achieved as result of the input predominantly referring to land, labour and capital as the key resources. Between penalty rates and productivity there is no association they are separated by the contexts of which they are defined. (AI Group, 2012) identify key problem areas within the Fair Work Act Review and state that it is ‘hampering productivity growth, workplace flexibility and competitiveness’ thus meaning that penalty rates do not influence productivity