What does the right to manage mean?

The right to manage refers to an employer’s fundamental authority to make decisions about how work is organized, assigned, and evaluated within an RTM company, which impacts leaseholders significantly. This right gives the management company the freedom to direct operations, determine job responsibilities, assign tasks, evaluate performance, and structure teams as needed to meet business objectives. While this concept is deeply embedded in employment law and HR practices, it often exists in tension with employee expectations and union agreements.

Understanding the right to manage meaning requires recognizing that it’s not a blanket license for unchecked control. Instead, it’s a framework that allows employers in an RTM company to guide business operations while still being bound by labor laws, employment contracts, and in some cases, collective bargaining agreements, including considerations of landlords' votes. It forms the basis for many workplace policies, from performance management systems to restructuring decisions.

In HR terms, this concept helps define managerial rights: the areas where employers have discretion without needing consent from employees or unions. This includes hiring and firing decisions, establishing work schedules, and managing building productivity. While these are considered management’s rights, their use must remain ethical and legally compliant.

Key takeaways from the blog

• The right to manage allows employers to make operational decisions, but it must be balanced with employee rights and ethical practices.
• Misuse of managerial rights can lead to low morale, legal issues, and high turnover, especially in remote or hybrid setups.
• HR plays a crucial role in aligning management’s rights with people-centric values and fair workplace policies.

What are the benefits of the right to manage?

When applied with clarity and fairness, the right to manage supports efficient business operations while maintaining structure and accountability, especially concerning leaseholders. It provides a clear chain of command and helps companies adapt quickly to internal and external changes. 

Below are key benefits that explain why the right to manage remains a core aspect of modern management practices:

• Operational efficiency: With defined managerial rights, employers can make quick decisions without delays caused by constant negotiations. This agility allows businesses to respond promptly to market demands or internal challenges.
• Strategic alignment: Exercising the right to manage company operations ensures that all departments and roles align with long-term goals. Managers can restructure teams or redefine roles to keep performance in sync with business strategy.
• Consistency in management: A clearly established right to manage allows uniform application of policies and processes. This reduces confusion and creates a fairer workplace by holding all employees to the same expectations.
• Defined accountability: When management’s rights are respected, accountability becomes easier to enforce. Each employee knows who is responsible for decisions, performance evaluations, and corrective actions.
• Better resource allocation: The ability to assign roles, schedules, and tasks under managed rights improves resource use. Managers can reallocate labor or tools to high-priority areas without waiting for consensus.
• Improved leadership control: The rights of managers include the ability to set expectations and evaluate team performance, allowing for better leadership oversight and talent development.
• Faster implementation of changes: When employers fully understand the right to manage, meaning they can introduce new technologies, workflows, or strategies more easily. This keeps the organization competitive and future-ready.

But even the strongest systems crack when balance slips, so what happens when the right to manage goes too far?

Problems with the right-to-manage system

The right to manage is essential for organizational control, but when exercised without care, it can create friction, damage trust, and lead to legal or cultural issues, including disputes over management fees. Overreliance on management’s rights without balance may alienate employees and weaken team dynamics. 

Here are seven common right-to-manage problems that leaders must understand and address:

1. Lack of employee voice

One major drawback of the right to manage company operations is the tendency to exclude employee input, particularly from qualifying leaseholders. When decisions are made top-down without feedback, it leads to a sense of disempowerment under the Tenant Act. Employees may disengage, feeling their ideas or concerns are not valued.

2. Perceived unfairness in decision-making

Without transparency, the exercise of managerial rights can be misinterpreted as favoritism or inconsistency. Employees may feel decisions, such as promotions or task assignments, are biased, undermining team morale, especially regarding voting rights within the organization. This perception erodes workplace trust over time.

3. Over-centralization of authority

According to Spacelift, 20% of employees have felt pressure to compromise standards. When leaders tightly control all aspects under the right to manage, including decisions about total floor area, team leads and mid-level managers lose autonomy. This limits creativity and slows responsiveness. It can also cause frustration among those who want to contribute to strategic or operational decisions.

4. Conflicts with union or legal boundaries

Misapplication of management rights often leads to disputes in unionized settings, where collective bargaining terms are in place and can result in an RTM claim. Ignoring these agreements can trigger legal challenges or strikes, putting the company at reputational and financial risk.

5. Negative impact on employee morale

A workplace dominated by unchecked management’s rights can feel rigid and punitive. Employees may feel constantly monitored or undervalued, which affects their engagement. Over time, this results in burnout and increased dissatisfaction, which contradicts the statutory right of employees to a healthy work environment.

6. High turnover and retention issues

When staff feel voiceless or unfairly treated, turnover rates increase. The lack of balance in enforcing the right to manage can make the work environment feel hostile to any company member who wishes to contribute. Replacing disengaged or departing talent also adds costs and slows growth.

7. Limited innovation and adaptability

Strict adherence to the right to manage RTM, meaning as control rather than guidance, discourages initiative and can lead to issues with a poor or incompetent manager. Employees may hesitate to suggest improvements or take risks. This can make organizations less agile in responding to changing business needs.

And this friction only intensifies when management’s rights collide with collective bargaining structures. Here’s how they differ.

Right to manage vs. Collective bargaining rights

The right to manage and collective bargaining rights represent two sides of workplace governance—one driven by employer authority, the other by employee negotiation power. While both aim to shape a functional workplace, they often intersect, challenge, or complement each other. 

Here's a breakdown of how these two systems differ across key areas:

Now that we’ve contrasted both systems, it’s time to see where managerial rights show up in everyday operations.

Areas where employers exercise the right to manage

According to Spacelift, 71% of global respondents identified digital transformation as a key area requiring compliance involvement. The right to manage gives employers the authority to make day-to-day operations and long-term strategies. These management rights are exercised in multiple business management functions. 

Here are five key areas where the right to manage company operations is most visible:

1. Hiring and staffing decisions: Employers use their managerial rights to decide who joins the organization, when to hire, and how roles are structured. This allows leadership to shape the workforce based on evolving business needs, cultural fit, and strategic priorities.
2. Work assignments and role definitions: Under the right to manage, managers have control over who does what, how tasks are distributed, and how job roles evolve. This helps ensure team efficiency and allows realignment of responsibilities during restructuring or growth phases.
3. Performance evaluations and discipline: One of the clearest examples of managing rights is in assessing employee performance and issuing corrective actions when needed. Managers set performance metrics, give feedback, and take disciplinary steps to uphold standards and accountability.
4. Scheduling and shift management: Employers can set work hours, approve time off, and manage schedules to optimize operations. The right to manage, meaning here includes aligning availability with peak demand and business cycles, especially in industries with variable workloads.
5. Operational restructuring and layoffs: During mergers, downsizing, or pivot strategies, employers exercise their right as managers to make structural changes. This includes redistributing teams, changing reporting lines, or implementing layoffs based on business imperatives.

But authority is never unlimited. Here’s where the right to manage meets legal and ethical boundaries.

Limits of the right to manage: What HR must know

While the right to manage gives employers essential control over workplace decisions, it’s not absolute. 

HR professionals must understand the legal, ethical, and practical boundaries of management’s rights, including considerations like the landlord's costs, to avoid conflict, legal risk, or damage to employee trust. Here are seven important limits every HR team should consider:

• Bound by labor laws and regulations: The right to manage company affairs must comply with labor laws governing wages, discrimination, safety, and termination. Overstepping these boundaries can result in legal penalties, lawsuits, or regulatory scrutiny from labor boards.
• Restricted by collective agreements: In unionized workplaces, managerial rights are limited by collective bargaining agreements. Employers cannot make unilateral decisions on pay, hours, or conditions without negotiating terms with the union or risk breaching contract terms.
• Cannot override basic employee rights: Management’s rights do not extend to violating employee rights such as freedom from harassment, access to leave, or the right to a safe workplace. Any violation of these rights invites legal and reputational consequences.
• Subject to policies and past practices: Employers must align their actions with internal policies and past precedents. Exercising management rights inconsistently can lead to claims of unfair treatment or favoritism, especially in performance or disciplinary matters.
• Must be reasonable and justifiable: The law often requires that decisions made under the right to manage be reasonable. If actions—like demotions or role changes—seem arbitrary or punitive, they can be challenged in court or via grievance channels.
• Impacts morale if applied rigidly: Overreliance on the rights of managers without considering employee input or workplace culture can lead to disengagement. HR must ensure decision-making respects human factors, not just business efficiency.
• Vulnerable to legal challenge if abused: If the right to manage's meaning is stretched to justify unfair labor practices or discriminatory decisions, employees have the right to challenge these actions legally. Misuse of these rights often leads to lawsuits or public backlash.

Now that the boundaries are clear, here’s how HR can design a balanced right-to-manage framework.

How do you build a right-to-manage system?

Establishing a right-to-manage system requires more than asserting authority—it involves designing fair, transparent management processes that respect legal limits and foster trust. To make management’s rights both effective and ethical, HR must build frameworks that are aligned with company culture and employee expectations. 

Here are six steps to create a solid system:

1. Define the scope of managerial rights: Start by clearly outlining what areas fall under managerial rights, such as hiring, performance, scheduling, and discipline. A documented scope helps avoid overreach and reinforces consistency across departments.
2. Review labor laws and union agreements: Ensure the system aligns with national labor laws and, where applicable, collective bargaining agreements. This protects the right to manage company affairs while staying compliant with legal and contractual boundaries.
3. Create transparent internal policies: Build policies that communicate how rights will be managed, including decision-making procedures and escalation paths. Transparency builds credibility and minimizes resistance from employees or their representatives.
4. Train managers on ethical application: Equip managers with training on how to apply management’s rights fairly and consistently. Include examples of what not to do to prevent misuse, bias, or conflict with employee rights and workplace norms.
5. Build in feedback and review mechanisms: Create opportunities for employees to give feedback on how the rights of managers are being implemented. This loop helps HR spot trends, correct oversteps, and adjust policies in real time.
6. Ensure documentation and accountability: All decisions taken under the right to manage should be documented, especially around promotions, terminations, or role changes. This protects the company from legal risks and demonstrates accountability in practice.

The right to manage the process to set up in the workplace 

Implementing the right to manage at the workplace isn’t just about claiming authority—it’s about embedding a structured and compliant system that supports decision-making while respecting employee boundaries. To do this, organizations must first outline a clear definition of what the right to manage means in their specific context. This often includes identifying areas where management has unilateral control, such as staffing, role assignments, performance monitoring, and daily operations.

Next, employers must ensure that this framework complies with legal standards and does not infringe on unionized rights or collective agreements. In union environments, any implementation of management’s rights must be coordinated through bargaining, as any unilateral action could breach terms or escalate conflicts. Even in non-union settings, fairness and due process must guide actions to avoid grievances or legal challenges.

It’s essential for HR to draft internal policies that clearly explain how these managerial rights will be applied, who holds decision-making authority, and what checks exist to prevent overreach. Training sessions for leaders should reinforce ethical decision-making, aligned with both company values and workplace regulations.

Finally, the right to manage company affairs must be supported by documentation, transparent communication, and accessible grievance redressal systems. This ensures employees feel heard even in top-down decisions and helps build trust. When well-structured, the right to manage becomes a stable foundation for efficient and fair workplace governance.

How to balance the right to manage with employee engagement?

Balancing the right to manage with employee engagement is crucial to maintaining a motivated and productive workforce, which also includes the perspectives of other leaseholders. 

While employers have the authority to make key decisions, involving employees meaningfully helps build trust and reduces resistance. 

• Encourage open communication: Even though management holds decision-making power, creating channels for employees to share feedback fosters engagement. This two-way communication respects management’s rights while making employees feel valued and heard.
• Involve employees in decision-making when possible: While some areas fall under the right to manage company affairs, involving employees in relevant decisions, especially those impacting their work, builds ownership and reduces conflict. This collaborative approach strengthens relationships.
• Be transparent about decisions: Clearly explaining the reasons behind managerial choices helps demystify the exercise of managerial rights. Transparency reduces misunderstandings and shows respect for employees’ perspectives, improving morale.
• Apply managerial rights fairly and consistently: Consistency in enforcing rules and policies ensures employees view the rights of managers as just rather than arbitrary. Fair treatment promotes trust and helps sustain engagement over time.
• Recognize and reward contributions: Even within the bounds of the right to manage, acknowledging employee efforts boosts motivation. Celebrating achievements alongside exercising managerial control creates a more balanced, people-focused environment.

Right to manage in remote and hybrid workplaces

Managing employees in remote and hybrid workplaces presents unique challenges that require adapting the right to manage to new realities. Employers still hold managerial rights but must balance control with flexibility and trust. Here are the key ways the right to manage plays out in these modern work environments:

• Setting clear expectations remotely: Managers need to clearly communicate goals, deadlines, and performance standards in remote settings. Exercising management’s rights means ensuring employees understand what’s expected despite the lack of physical supervision.
• Using technology to manage workflows: The right to manage company operations now involves leveraging digital tools to assign tasks, track progress, and coordinate teams. This helps maintain oversight while respecting employees’ autonomy in flexible work arrangements.
• Flexible scheduling and location decisions: In hybrid workplaces, the rights of managers include determining who works on-site and who works remotely. This requires balancing business needs with employee preferences to maintain productivity and engagement.
• Monitoring performance with trust: While managers retain the authority to evaluate employee output, remote work demands a focus on results rather than hours logged. Trust becomes a vital component of exercising managerial rights effectively.
• Adapting policies for remote work challenges: HR must ensure that management’s rights align with policies addressing remote work issues like data security, communication protocols, and work-life balance. This helps prevent misuse of authority and supports a positive remote culture.

Role of HR in supporting ethical use of the right to manage

HR plays a critical role in ensuring the right to manage is exercised ethically and fairly across the organization. By guiding managers and protecting employee interests, HR helps balance management’s rights with respect and compliance. Here are the ways HR supports the ethical use of these managerial rights:

• Developing clear policies and guidelines: HR creates detailed policies that define the scope and limits of managerial rights. These guidelines help prevent misuse of the right to manage company affairs and provide a consistent framework for fair decision-making.
• Training managers on ethical leadership: HR trains leaders to apply rights of managers responsibly, emphasizing respect, transparency, and legal compliance. This reduces risks related to bias, discrimination, or arbitrary decisions.
• Monitoring and addressing grievances: HR acts as a neutral party to investigate complaints related to the misuse of management’s rights. Timely intervention helps maintain trust and ensures that the right to manage is not abused.
• Encouraging open communication: By promoting dialogue between managers and employees, HR helps ensure that the exercise of managerial rights is transparent and considers employee perspectives, enhancing fairness and engagement.
• Ensuring accountability and documentation: HR implements systems for documenting decisions made under the right to manage. This accountability supports ethical practices and protects the company from potential legal challenges.

FAQs

1. When does the right to manage apply?

The right to manage applies whenever employers need to make decisions related to daily operations, staffing, work assignments, and performance management. It is particularly relevant when balancing organizational efficiency with leaseholders' employee rights. This right comes into play in both unionized and non-unionized workplaces, though its scope may be limited by collective bargaining agreements or labor laws.

2. Who uses the right to manage?

The right to manage is primarily used by employers, managers, and HR professionals who have the authority to make operational decisions. It empowers management to direct workforce activities, enforce policies, and oversee performance. This right helps maintain order and ensures business objectives are met while respecting legal and contractual boundaries.

3. Can employees legally challenge the employer’s right to manage?

A company member can legally challenge the right to manage if they believe management is acting beyond its authority or violating labor laws and contracts. Such challenges may include unfair labor practice claims, grievances through unions, or lawsuits alleging discrimination, retaliation, or breach of collective bargaining agreements. Courts and labor boards often review whether management’s actions were reasonable and lawful.

4. How can the misuse of the right to manage impact employee morale or turnover?

When the right to manage is misused—through unfair treatment, lack of transparency, or ignoring employee concerns, including concerns raised by fellow leaseholders; it damages trust and lowers morale. Employees may feel undervalued or powerless, leading to disengagement and dissatisfaction. Over time, this can lead to increased turnover as workers leave for more supportive environments, resulting in disruption and higher costs for the organisation.