Question

You are the top manager of a large auto plant. For the past four months, you...

You are the top manager of a large auto plant. For the past four months, you have been engaged in contract bargaining with a union. The tables have turned, and it is your turn to list items to represent your company. You have decided to include a clause in the labor agreement to express the rights of management. Determine your theory of management rights (either residual theory or trusteeship theory) and describe why you selected this position for your organization.

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Answer #1

I would choose the trusteeship theory as my approach. This is because the trusteeship theory considers the viewpoint of all the stakeholders involved and then takes the best course of action. This approach incorporates both consensus and conflictive negotiation. Using this approach, even if the management is not accepting the clauses of union, no ill feeling culminates between them as the management has given a fair consideration to each clause proposed and based on the feasibility of the clause, the action has been taken.

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