Managerial prerogative and strategic choice in employment relations

Nadia K. Kougiannou and Pedro Mendonça

Chapter 14 in Theories and Concepts in Work and Employment Relations, 2025, pp 125-132 from Edward Elgar Publishing

Abstract: This chapter examines Managerial Prerogative (MP) and Strategic Choice Theory (SCT) as central frameworks shaping employment relations, aiming to provide a nuanced understanding of how managerial authority and strategic choice influence employment relationships in evolving work environments. MP highlights the unilateral authority vested in management, permitting managers to set employment terms and organisational policies, often reinforcing a power imbalance that prioritises employer interests. Rooted in traditional property rights, MP aligns with a unitary perspective that views organisations as cohesive entities unified under managerial authority. Conversely, SCT addresses the dynamic and competitive context of modern business, positioning management as a strategic actor influenced by external forces such as technology and regulation. SCT emphasises adaptability, suggesting that organisations, in responding to these forces, make deliberate strategic decisions that shape employment practices and, ultimately, workplace dynamics. Critiques of MP point to its potential to marginalise employee interests, reducing avenues for worker participation and limiting workplace democracy. SCT, while encouraging strategic adaptability, is criticised for assumptions around rational decision-making and its focus on competition, which may overlook opportunities for collaborative approaches in employment relations. Future research areas include investigating the ethical implications of managerial prerogative, trust dynamics within organisations and the impact of emerging technologies on work environments.

Keywords: Managerial Prerogative; Strategic Choice Theory; Employment relations; Power; Organisational strategy; Workplace dynamics (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035316199
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