All Flashcards
(77 cards)
Managerial Prerogative and what does it include decisions of?
Is the notion that in a capitalist society, the owners of a business - or the managers to whom owners have delegated their authority, have the right to determine how their businesses are run.
Includes decisions about Number of employees hired Employment conditions Work practices Location of businesses Appropriate technology
How do different managerial styles come to exist in organisations?
Result of basic frames of reference
Influenced by prevailing social norms
Legislative frameworks
What is the assertion of managerial prerogative
Assumption that managers have a “right to manage” is a fundamental aspect of employer attitudes in most capitalist economies
What law was managerial prerogative derived from?
Contract Law
Law of master and servant
Early 1800s the employment relationship involved dealings between wealthy and domestic servants. Created sense of rights and obligations. Master had to provide food and shelter and in return had their right to enjoy unquestioned loyalty.
How is managerial prerogative justified?
Onset of Industrialism
Courts required legal model
Same ideological basis from law it arose
Used to rationalise expressions of self interest and economic self interest
Two alternative ways of justifying managerial prerogative
Legal Justification
Functional Justification
What is legal justification of managerial prerogative
Company law - management acts as a agency or trustee of company’s law
Has all rights, privileges, powers and immunities associated with ownership.
Can be conflicts between interests of shareholders and employees
In defence of legal ownership rights and interests of shareholders - management will often resist employee or union demands for a share in decision making.
What does the legal justification of managerial prerogative rest on?
Identification of the managers with the owners of the organisation
The exercise by the managers of the owners property rights
What is agency theory?
Whereby in large scale organisations, managers have generally been left to control their own departments, there is generally the feeling they own their company’s. Often creates a control problem.
What is employee influence?
Influence given to employees at the discretion of the management.
Participative management - any way in which workers become involved in the traditional role of managers. Any structure or process by which workers exercise a share in managerial work.
Workers have a greater access to information
Workers have a say in decisions
What is financial employee participation?
Employee participation in ownership and/or profits
Employee shareholding or access to income flow
Profits when dividends declared
Stand to benefit from capital gains
Not owners in strict legal sense
Based on idea that financial input leads to higher psychological commitment
Often found in management
What are some of the employee participative structures
Found in NZ & overseas - aligned with many management fads
Joint Consultation Quality Circles Task Forces Job Enrichment Autonomous Work Groups Collective Bargaining Co-Management
Types of Financial Employee participative structures?
Profit Sharing
Employee Shareholding
Scope of EU employee participation
Long standing in EU 100+ years
Persistent pressure based on rights of social model
State seen as provider of regulations to enhance democratic employee rights
Fine tuned and integrated - now a norm
What is a dual labour market?
Theory suggests that labour market is divided into 2 separate independent working worlds
Primary Labour
Secondary Labour
What are the features of a primary labour market?
Affluent, well trained, enjoy employ security and high status, well paid jobs, opportunities for promotion, and career development
What are the features of a secondary labour market?
Marginalised, low status, low paid jobs, vulnerable to employment at short notice, skills not highly valued, more transient between jobs without gaining improvements in working status - usually smaller organisations, weak bargaining power, union activity not effective
What are the barriers to mobility moving from secondary to primary labour markets?
Job characteristics: Career/Promotion Opportunities/Reward structures
Industry characteristics: Size of firm and competitiveness
Worker characteristics: Sex/ethnicity/skill/educational attainment
Recruitment and employment policies of all employers and attitudes to work
What are dismissals?
Termination of an employment contract
At some point every employment contract will come to an end - usually through resignation
What are the features of lawful dismissal?
Termination initiated by employer are those that draw the most amount of attention and most difficult in practice
Lawful when:
Adequate notice is given to employer - not enough to dismiss
Sufficient cause/Justification
Carried out in a fair and reasonable manner
If not can be challenged under a PG because of “good faith and bargaining”
Justifiable means of dismissal
Misconduct
Capacity
Economic Reasons
What are the features of misconduct?
Assessed on own merits
Failing to carry out reasonable and lawful command Breaching work rules Breaching terms of contract Insubordination Assault Dishonesty
Usually must take place in terms of agreement (ie not outside hours)
What are the features of capacity in dismissal?
Refers to ability of employee to perform the job to the minimum standards required by the employer
Meet specified standards
Have certain skills
If employee unwilling or unable to do so, may be justified in dismissal
Problem must be shown to be ongoing
What are the features of economic reasons in dismissals?
Redundancy - where a person is considered superfluous to requirements
Restructure
Closure