CAT / FIA FBT Syllabus B. Business Organisation Structure, Functions - Purposes of Committees - Notes ^{1 / 4}

A committee is a group of people assigned a task that they are expected to carry out as a group.

The key objective of the rules of procedure for committees is to facilitate the smooth running of a committee.

Its actions can only be group actions – individual members have no valid power to act or to decide anything apart from the group.

If, in fact, they do act apart from their fellows and their acts are accepted as valid, then the committee is a mere facade without any real substance!

In theory, when acting as a committee, all members enter it as equals.

They will normally elect a chairman and a secretary if the proceedings are to be formal and record is meant to be kept.

In fact, one can mention three main types of committees:

1. The ad hoc committees which are created for a specific reason and on temporary basis

2. The formal committees are part of the organisational structure with specifically delegated duties and authority

3. Audit committees – review the company's accounting policies and internal controls, annual financial statements and the audit report with the company's external auditors

The most common complaint brought against committee work is the amount of time which it consumes in relation to the results achieved.

This is the same thing as saying that committees are an expensive instrument of administration.

This is because the modern world has far too many of them and their proceedings are not always successful.

Committees proliferate not only within businesses but also outside in connection with trade associations and government departments and they make increasing demands upon the time of managers.

Each different point of view expressed by the members of the committee must be ventilated and attempts made to construct a bridge between them.

Even if a simple majority vote is all that is needed, considerable time may be taken up to avoid any appearance of stifling the expression of minority opinion.

Jobs assigned to committees are expected to achieve better results than that of a single person because of the nature of group decision taking.

From this point of view, therefore, the committee will probably be employed in those cases where group deliberation and judgement are likely to be of better quality than that of an individual - “two heads are better than one”.

The following points summarise the purpose of the committee within an organisation:

• gather information

• disseminate information or instructions – delegating authority to employees or managers

• generate ideas

• make or implement decisions – committees may give a voice in the making of the decisions before being implemented

• coordinate the efforts of a number of people from divergent disciplines – bringing parties together for discussion in the hope of finding reconciliation

• act as a delaying mechanism – and thus achieving time

• oversee a function or procedure