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1. To get the members to work as a team
2. To recognize executive ability and enable training for those who later will comprise top management
3. To enable the pooling together of executive abilities and experience or the bringing together
of some of the best brains of the business firm.
4. To secure the unity of action upon which success in any firm depends.
1. Scope
It deals only with specific problems being referred by top management.
In fact, there are strictly defined scope and jurisdiction within which the committee is expected to justify its existence.
2. Deliberation
The members can go into details of the problems and can discuss each and every segment of the problem concerned.
3.Authority
A committee may have the authority either to take final decisions or to just recommend the action in the matter, depending upon the authority given by top management.
"A committee is a body of people appointed or elected to meet on an organized basis for the consideration matters brought before it."
- Louis A. Allen
"Committee as a group of people specifically designated to perform some administrative act. It functions only as a group and requires the free exchangeof ideas among its members."
- W.H Newman
1. Standing or Ad Hoc Committees A committee may be permanent (standing)
or ad hoc (temporary) in character. A standing committee has permanent existence
while an ad hoc committee is formed for a specific purpose and period of time.
2. Decision-making or other Committees A committee may be delegated authority
while others may merely deliberate on the problems. Some committees are authorized
only to make recommendations to the line officers.
3. Line or Staff Committees The line committee is charged with
the authority of decision making affecting subordinates responsible to it.
4. Formal or Informal Committees Formal committees are those who have been
organized under organizational rules and regulations and with specific authority
defining its duties and authority. An informal committee is being formed without
specific duties and authority. It does not form part of the business firm.
1. Delay in Decisions There are times when the decisions are delayed that the solutions become useless, due to the number of decision-makers.
2. Delay in Action Since the decisions are delayed it follows that the actions become late.
3. Lack of Motivation Sometimes no officer is tasked to decide , and so the matter is referred to the committee. Thus, it creates lack of motivation.
4. Lack of Responsibility Since all the decisions are taken by all members of the committee, it's hard to pin point responsibility to any member.
5. Monopoly of One Member An aggressive member of a committee may monopolize all the decisions and dominate the other members.
6. Lack of Secrecy There is a lack of secrecy because the members of the committee come from different functional departments. There is a tendency that important decisions can be relayed in advance to other departments.
7. Against Minority Rule The rule of majority is always the basis of any decision. Thus, the decisions of the minority members sometimes remain unheard.
Advantages of Committee Type of Organization
1. Collective Decisions The collective skills, expertise, knowledge and experiences of the members of the committee shall about more realistic and sound decisions.
2. Communication of Information The committee itself provides a suitable body for effective communication network.
3. Increase in Mutual Cooperation Mutual Cooperation among members of the committee is being developed. There is the feeling of mutual trust and cooperation among members of the committee.
4. Decentralization of Power All the members of the committee have the rights to partipate in decision-making. It is not concentrated to only one person.
5. Democratic Process The principle of democracy is being observed by adopting the rule of majority.
1.Principle of Minimum Number of Member
The number of members of the committee should not be large.
The maximum members are five or six , so that the committee can be
properly managed.
2. Principle of Inclusion of Concerned Members
Members of the committee must be those persons who are concerned
and interested with the assigned jobs.
3. Principles of Regular Meeting of Committee
The meetings of committee must be regularly called in proper manner.
Every member of the committee must be duly notified of the meetings
being called for.
4. Principles of Rights and Duties of Members
It is necessary that the rights and duties of the member of
the committee must be clearly defined.
5. Principle of Liabilities of Members
The liabilities of the committee members must only be limited to the rights and authorities delegated to them.
6. Principles of Agenda of the Committee
All meetings being called for must have predetermined agenda to avoid wasting so much time.
7. Principle of Mutual Trust
Mutual trust and feeling among members of the committee shall promote cooperation.
8. Principle of Membership Retirement
Members of committee must be liable to retire by rotation to have rigor and continuity.
6. Collective Decision All the decisions of the members are being collectively integrated to form one major decision of the committee.
7. Executive Abilities of the Members The executive abilities of the members of the committee are taken together for a better judgment and contribution to the business firm.
8. Strong Coordination Based on the mutual trust and cooperation among members of the committee, strong coordination in performance of all activities shall prevail.
9. Effective Control Controlling is effective because the members of the committee are active participants in decision-making process. The implementation process becomes easier and successful for they are part of the process.