A system is provided for managing torque in a vehicle driveline coupled to an internal combustion engine and to a hybrid motor/generator. An engine control circuit provides to a transmission control circuit an engine torque value corresponding to torque applied by the engine to the driveline. A hybrid control circuit provides to the transmission control circuit a motor torque value corresponding to torque applied by the hybrid motor/generator to the driveline. The transmission control circuit controls operation of at least one friction device and controls shifting of the transmission, and also manages torque applied to the drive line by the engine and by the hybrid motor/generator based on the engine torque value and the motor torque value such that the friction device control and shift schedule instructions do not require modification to accommodate inclusion of the hybrid motor/generator in the system or exclusion of the hybrid motor/generator from the system.