Committee System in Management

Committee System is a widely used mechanism in management that facilitates collective decision-making and governance within an organization. Committees are formal groups constituted by the management to address specific organizational issues, policies, or decisions. This system ensures that diverse perspectives are considered, leading to well-rounded and strategic outcomes. Below is a detailed exploration of the committee system in management.

Definition and Types of Committees

A committee is a group of individuals appointed by management to deliberate and decide on specific matters. Committees can be classified into different types based on their purpose and scope:

1. Standing Committees: These are permanent committees tasked with handling ongoing organizational issues, such as a finance or audit committee.
2. Ad Hoc Committees: Formed temporarily to address specific issues or projects, they dissolve after their objectives are met.
3. Executive Committees: Consist of top executives and are responsible for high-level strategic decisions.
4. Advisory Committees: These provide expert opinions and recommendations without making final decisions.
5. Joint Committees: Include representatives from different departments or units to foster collaboration.

Features of the Committee System

1. Collective Decision-Making: Committees pool diverse expertise, knowledge, and perspectives, leading to comprehensive and balanced decisions.
2. Structured Framework: Committees operate under clearly defined guidelines, charters, or terms of reference, ensuring their focus aligns with organizational goals.
3. Accountability: Members are collectively accountable for decisions, which promotes careful deliberation and commitment.
4. Inclusive Participation: Committees encourage input from members across different levels or departments, fostering inclusivity and engagement.

Objectives of the Committee System:

1. Collaboration and Coordination: Committees enhance collaboration across departments, ensuring seamless coordination of efforts.
2. Specialized Problem-Solving: By involving experts or specialized members, committees address complex issues effectively.
3. Employee Participation: Committees foster participative management, enabling employees to contribute to decision-making and organizational development.
4. Policy Formulation and Implementation: They assist in drafting, evaluating, and implementing policies.

Advantages of Committee Organization

1. Fear of Authority

If too much functional authority is delegated to a single person, there is always a fear that the authority may be misused. Committees avoid undue concentration of authority in the hands of an individual or a few.

2. Group Deliberation and Judgement

It is the general rule that “two heads are better than one“. Since the committees comprise of various people with wide experience and diverse training, they can think the impact of the problems from various angles and can find out appropriate solutions. Such decisions are bound to be more appropriate than individual decisions.

3. Representation of interested Group

A policy decision may affect the interests of different sections. The committees provide an opportunity to represent their interest to the top management for consideration. This will facilitate the management to make a balanced decision.

4. Transmission of Information

Committees serve as a best medium to transmit information since they generally comprise of the representatives of various sections. Misinterpretation is almost avoided.

5. Coordination of Functions

They are highly useful in bringing co-ordination between different managerial functions.

6. Consolidation of Authority

Many special problems arising in individual departments cannot be solved by the departmental managers. The committees, on the other hand, permits the management to consolidate authority which is spread over several departments.

7. Avoidance of Action

The committee system also helps the manager who wants to postpone or avoid action. By referring the complicated matters to the committees, the managers can delay the action.

8. Motivation through Participation

Managerial decisions cannot be put into action without the co-operation of the operating personnel. Since the committees provide an opportunity for them to participate in the decision-making, the management can gain their confidence and co-operation.

9. Educational Value

Participation in committee meetings provides a beautiful ground for development of young executives. Through observation, exchange of information and cross examination, the young executives can broaden their knowledge and sharpen their understanding.

Disadvantages of Committees

1. Indecisive Action

In many cases, committees are unable to take any constructive decision because of the differences of opinions among their members.

2. High Cost in Time and Money

Committees take a lot of time to take a decision. The prolonged sessions of the committee results in a high expenditure. Generally speaking, committees are constituted only to avoid or postpone decisions. Hence, delay in decision has become an inherent feature of committees.

3. Compromising Attitude

In reality, many decisions taken by a committee are not the result of joint thinking and collective judgements. But they are only compromises reached between the various members Hence, the decisions of the committees are not real decisions in the strict sense.

4. Suppression of Ideas

Many smart members who can contribute new ideas, deliberately keep their mouth shut in order to avoid hard feelings.

5. Dominance of a Few

Collective thinking and group judgement are only in theory but not in practice. The decisions of the committees are generally the decisions of the chairman or any strong dominant members.

6. Splitting of Responsibilities

The greatest disadvantage of this system is the splitting of authority among the committee members. When authority is split up, no one in particular can be held responsible for the outcome of the committee.

7. Political Decisions

Since the committee decisions are influenced by the dominant members, the decisions of the committee cannot be taken as meritorious one with broader outlook.