Chapter 14 - Committees in the business organisation

1. A committee is a group of people to which some matter is committed.

2. Rules in a committee is designed to:

• promote smooth running
• consistency and fair play are maintained
• minimise effects of bullying tactics
• ensure proper record of all proceedings is kept

3. Size may affect the efficiency in a committee:

• individuals is large committee do not have enough time to voice out opinions

• few in group may mean lack of expertise

4. A successful committee should:

• representative of all interests
• have a chairperson
• circulate reports
• worth the cost of its operation

5. Purpose of the committee:

• gather information
• generate ideas
• disseminate (give out)information
• Delaying mechanism

6. Types of committee in an organisation

• Executive - power to govern, appointed by shareholders
• Standing - deal with business and meetings on a weekly and daily basis
• Ad hoc - complete certain task, normally temporary
  
• Sub - relieve parent committee of some of its work
• Joint - coordinate activities of 2 or more committee
• Management - contain executives, not all decisions are taken by the Board

7. Board of directors is a group of people legally charged with the responsibility to govern company. Their role :

• lay down strategy, general policy and broad sectional policies
• ensure legal standards are met
• sanction capital expenditure and the method of disposal of profits

8. Steering committee is to oversee a major project, generally IT based.

9. Ethics of a committee in an organisation with respect to :

• conflicts of interest
• confidential information
• complaints of customers
• transaction involving related parts of the company

10. Advantages and disadvantages:
ADVANTAGES:

• Responsibilties are shared
• Ability to undertake larger volume of work
• Poor talent, judgment and allow specialisation
  
• Improves coordination between work groups

DISADVANTAGES:

• Slower decision making
• Waste time and resources
• "experience" committee may dominate
• Cannot act quickly and flexibly to meet sudden changes in a situation

11. Roles of a chair and a secretary of a committee:
CHAIR:

• Keep meeting to a schedule and to the agenda
• Maintain order
• Ensure correct procedure is observed
• Ensure impartiality
  

SECRETARY:

• Fix date and time of meeting
• Assist chairperson making notes
• Prepare minutes

12. Skills and knowledge of an effective chairperson:

• Skills in communicating
• Ability to be decisive
• Sound knowledge of relevant regulations
• Skill of summarizing
• Ability to silence people in a firm and friendly manner
• An awareness of non-verbal behaviour.
  

By: Timothy J.P