Management (or managerial) prerogative refers to the right of management to take and act upon decisions affecting the business or organisation. The scope of management prerogative is broad, from the level of product or service strategy to day-to-day operational issues. It is bounded by legal regulation, collective bargaining and other agreements with employees and their representatives. Such boundaries need not fundamentally challenge management prerogative, but rather subjects the process of decision-making to a requirement to acknowledge the interests of other stakeholders, including employees.

See also: consultation in the enterprise; corporate social responsibility; information in the enterprise; information and consultation.