Final answer:
In Germany, the groups of employees that must be consulted during management decisions involving personnel are called work councils. These councils are a testament to the co-determination policy of the German corporate governance system and are distinct from labor unions, operating within the company to ensure employees' concerns are addressed.
Step-by-step explanation:
In Germany, groups of nominated or elected employees that must be consulted when management makes decisions involving personnel are known as work councils.
Work councils are part of the German corporate governance system, which mandates the participation of employees in certain company decisions. This practice is distinct from unions, which are independent organizations formed to represent workers' interests and negotiate on their behalf for better wages, benefits, and working conditions. The formation and power of these councils are a reflection of Germany's co-determination policy, embodying a collaborative approach where employees have a say in the management of the company.
Unlike unions, work councils operate within the company and are directly involved in internal decision-making processes. Their role is to ensure that employees' rights and concerns are considered during corporate decisions, especially those impacting work conditions and employment.