Definition: is a privilege enjoyed by employers and managers that gives them the right to exert their discretion in relation to certain business spheres without discussing a decision with a workers’ union. Alternatively called management rights, they can’t be negotiated and are oftentimes included in an organization’s collective bargaining agreement. This prerogative includes the management’s right to: a) appoint and control workforce, b) choose a method that will be used to discipline workers for just cause, c) raise or lower the number of staff depending on the company’s needs and resource availability, and d) determine which products are being sold, at what price, and through which distribution channels.
In a Sentence:
Despite the negative response of the union, Mr. Jacobs exercised his management prerogative to release thirty percent of the company’s workforce.
Having the management prerogative can be a dangerous thing in an employer’s hands, as he can start making series of bad or selfish decisions without listening to his employees.
Jeffrey and Kate were left without pay this month as Johnson used his management prerogative to discipline them.
Synonyms and related words: prerogative, management consulting, management accounting, management rights, management style