Managerial Prerogative Essay

1864 Words 8 Pages
Managers have a degree of choice in how they deal with their employees. (Purcell, 1987) Some may see them as a commodity while others may see them as an important and valuable resource needing to be developed. (Purcell, 1987) Managerial prerogative is defined by Bray, Waring and Cooper (2011: pg 332) as “those areas of decision-making within an organization over which managers claim to have an unfettered right to decide as they see fit.” It is important to define managerial prerogative so that we can establish whether the legislation has increased or diminished it. Defining managerial prerogative is also important as we look at the different managerial styles and strategies and observe if they play any role in increasing or minimizing …show more content…
(Barnes and Lafferty, 2010)
Legislation passed in Australia in recent reforms, most significantly, under Howard’s control moved away from collective bargaining structures and favoured placing employees onto individual agreements. (Bray and Waring, 2006) Individual agreements obstruct union power because collective bargaining enables greater rewards for employees. (Peetz, 2002) The government advised that the purpose was to increase the working relationship between the employer and the employee by reaching agreements together on pay and working conditions in a bid to make them more flexible and fairer. (Cooper and Ellem, 2007) What the legislation actually did was harness the powers that unions held, increase managerial control over pay and working conditions especially for those employees that were either not effective in bargaining and limited arbitration as a means of solving conflict in the organisation. (Cooper and Ellem, 2007) Peetz and Preston (2009: pg457) confirm this by stating that “individual contracts are commonly used to reduce average pay and conditions and most affected those with skills that are not unique and those with limited bargaining power”
Individual agreements heighten managerial control because they are

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