In governance, which term describes a system in which employees share responsibility for the operation of a company?

In governance, which term describes a system in which employees share responsibility for the operation of a company?

• A. Codetermination
• B. Centralization
• C. Board governance
• D. Outsourcing

Answer: (A)

Codetermination is the governance arrangement where employees have a formal say in how the company runs, typically through representation on the board or a workers’ council. This shared responsibility means workers participate in significant decisions about strategy, structure, and working conditions alongside owners and managers, rather than decisions being made solely by executives. Centralization concentrates power at the top, board governance describes how a board oversees the organization (not necessarily including employee representation), and outsourcing involves handing tasks to external providers. So codetermination best captures the idea of employees sharing responsibility for the operation of the company.

Codetermination is the governance arrangement where employees have a formal say in how the company runs, typically through representation on the board or a workers’ council. This shared responsibility means workers participate in significant decisions about strategy, structure, and working conditions alongside owners and managers, rather than decisions being made solely by executives. Centralization concentrates power at the top, board governance describes how a board oversees the organization (not necessarily including employee representation), and outsourcing involves handing tasks to external providers. So codetermination best captures the idea of employees sharing responsibility for the operation of the company.