Guillermo Furniture Control System

Guillermo Furniture is a small company in Sonora Mexico. They have been making furniture for many years in the area. During the 1990s Guillermo Furniture received competition from an overseas company that entered the furniture business. The new overseas company is more technically advance than Guillermo’s and is able to produce the product quicker and cheaper. Because of managerial prerogatives which are described as part of a manager’s authority which gives the manager the option to do what the manager wants to do as long as he is legal Guillermo felt he should get with his management team and come up with some new perspectives that would keep his company profitable. Being the owner Guillermo knew that he had exclusive rights in regard to decision-making. Guillermo knew that he had special rights to establish and refuse to accept any intrusion with that control. He knew that he could establish new working hours and the right to make all other decisions which are the duty of management. Guillermo had the power to run his operation in any manner that he wanted he could run on a 24-hour basis and offset this through a reduction of his labor. An owner of a business enterprise is given considerable flexibility in managing his business. There are laws that recognize these rights under what is called management prerogatives in business. As a manager they can determine work assignments, working hours and where their employees work.

Management prerogative refers to the right of management to take and act upon decisions affecting the organization. The range of management prerogative is extensive, from the level of product or service policy to the day-to-day procedures. Management prerogatives are covered by legal guidelines, agreements with employees and their representatives. These restrictions do not need to challenge management prerogative but it challenges the process of decision-making to a requirement to acknowledge the interests of other stakeholders,...