An organizational structure in which employees share responsibility for the operation of a company is known as what?

An organizational structure in which employees share responsibility for the operation of a company is known as what?

• A. Centralization
• B. Matrix structure
• C. Codetermination
• D. Functional structure

Answer: (C)

Codetermination describes a system where employees participate in decision-making and share responsibility for running the organization, often through elected representatives on governance bodies or works councils. This involvement goes beyond simply following orders; it means workers have a voice in strategic and operational choices, helping align interests of staff with the company’s goals. This differs from centralization, where top leadership keeps most decisions, and from a matrix structure, which focuses on dual reporting lines for projects and functions rather than shared responsibility across the organization. It also differs from a functional structure, which groups people by their specific functions (like marketing or finance) without necessarily sharing operational responsibility across the whole company.

Codetermination describes a system where employees participate in decision-making and share responsibility for running the organization, often through elected representatives on governance bodies or works councils. This involvement goes beyond simply following orders; it means workers have a voice in strategic and operational choices, helping align interests of staff with the company’s goals.

This differs from centralization, where top leadership keeps most decisions, and from a matrix structure, which focuses on dual reporting lines for projects and functions rather than shared responsibility across the organization. It also differs from a functional structure, which groups people by their specific functions (like marketing or finance) without necessarily sharing operational responsibility across the whole company.