Probably the most severe limitation of managerial discretion is the negotiated requirement of seniority recognition.

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Seniority recognition is a negotiated requirement that gives priority to employees with longer tenure in the company, which limits managerial discretion in making decisions such as promotions, layoffs, and work assignments. The seniority system restricts the ability of managers to reward or punish employees based on their individual merits, skills, and performance, because they must follow a set of rules that validate the seniority-based hierarchy. Therefore, the seniority requirement can hinder a manager's flexibility, innovation, and responsiveness to changing market conditions or employee expectations, making it a severe limitation of their discretion.

Probably the Most Severe Limitation of Managerial Discretion Is the Negotiated