According to the residual rights theory of management
A)unions have authority over all issues not contained in the collective agreement
B)employers always maintain the residual right to create the compensation packages
C)unions bargain on how to best operate the business
D)all issues regarding the running of the business will be in the collective agreement
E)employers have authority over all issues not contained in the collective agreement

Question

Quizplus · Accepted Answer

The residual rights theory of management states that employers have authority over all issues not explicitly contained in the collective agreement. This includes decisions regarding the running of the business such as deciding on the company's goals, determining production processes, setting performance standards, and creating compensation packages. The theory assumes that employers have invested in the business and therefore have a legitimate stake in its success.

According to the Residual Rights Theory of Management