Business

Organisation
Topic 7 : Committees in Business
Organisation
 Definition of Committee

A committee is a group of people who are

committed to a particular purpose, in
which the group have been, delegated the
authority to make a decision about that
particular purpose.

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 Committee

Within an organisation, committees can

consist entirely of executives or may be
instruments for joint consultation between
employers and employees.
They are a key part of organisational
communication processes.

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 Committee

A group of people to which some matter is

committed 2 types:
1.Ad hoc
2.Formal committee
Committees:
–Are permanent
–Have authority
–Follow well established procedures
–Provide a well tried way of resolving
difficult decisions
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 Committee Features
• Rules of procedure
• Chairperson & secretary
• The minutes of the meeting which are
the official record of what has taken
place
• Committee papers & reports to help
committee make well informed
decisions or proposals
• Notice – announcement of the meeting
prepared & circulated in advance
• Agenda setting of what is to be
discussed & in what order 5
Committee’s Rigid Procedure
Rigid procedure about:
–Speaking
–Voting rights
–Proposing the motion & meetings
–Rights of attendance
–The construction of the agenda
–Adding emergency items to the agenda
–Quorum (minimum no of members
required for the meeting to take place)

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 Rules of Procedure
• To promote the smooth running of a
committee
• Ensures consistency & fair play
• Enable both sides in an argument to
state their case
• Ensures proper record of all
proceedings are maintained
• A meeting may only proceed if it has
been properly constituted – meets all
the criteria laid down regarding
attendance & conduct. 7
 Rules of Procedure
• If there is no quorum, the Chair has 2
options:
i. To make the meeting a discussion group
ii. To adjourn the meeting to a later date
• Procedures may also be defined regarding
the conduct of the meeting. Each item of
business may be required to be put before
the meeting as a proposal or a motion.
This usually requires a proposer & a
seconder. If it is carried (approved), the
motion becomes a resolution (decision).’

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 Rules of Procedure
• The original motion is sometimes
amended and may then be carried in an
altered form as a ‘substantive motion.
• An amendment is a proposal to alter a
motion that has been put before a
meeting, but has not yet been put to a
vote.
• An amendment which simply adds words
to the original motion is called an
addendum.
• Participants will then vote for or against a
motion
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 Rules of Procedure
A point of order is an objection about a
perceived irregularity in the convening,
constitution or conduct of the meeting.
It is made to the chairperson, who
makes an immediate ruling.

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 Size and success of a committee
Size:
• Too large a committee may not give
individuals time to give their point of
view but if everyone spoke it would
waste time
• Too few in the group may mean a
lack of breadth of expertise, or
decisions may be made with
insufficient deliberation.

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 Size and success of a committee
Success:
• Be representative of all interests
• Have a chairperson with good leadership
capabilities
• Choose suitable subjects for action
• Circulate reports prior to meeting
• Have clear cut terms of reference, with
areas of responsibility, timescales of
operations & purpose specified in writing
• Have the necessary skills & experience
• Be worth the cost of its operation
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 The purposes of committee
TASKS :
1. RELAYING DECISIONS &
INSTRUCTIONS
2. BRAINSTORMING
3. PROVIDING ADVICE & INFORMATION
4. DECISION MAKING
5. PARTICIPATIVE
6. PROBLEM-SOLVING CONSULTATION

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 Types of committee
Standing – formed for a particular
purpose on a permanent basis
Adhoc – are formed to complete a
particular task
Audit – review the company’s
accounting policies & internal controls,
annual financial statements and the
audit report with the company’s
external auditors.

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 Examples of committee
Board of Directors – group of people legally
charged with the responsibility to govern a
company
Purpose:
–Lay down strategy, general policy & broad
sectional policies
–Ensure legal standards are met & the company is
operating in accordance with its Articles of
Association
–Sanction capital expenditure & the method of
disposal of profits
–Ensure sufficient capital is available & maintain an
efficient system to control the affairs of the
company 15
 Examples of committee
Steering committee – oversee a major project,
generally IT based, within an organisation. Involved in
deciding how to allocate scarce IT resources.
Role:
• Ensure that all IT activities are in line with the
strategic plans of the org
• Provide leadership at senior level for the
exploitation & management of IT
• Ensure that resource allocation decisions are
effective
• Co-ordinate requirements in any org restructuring
• Create the terms of reference for the project
teams
• Monitor the progress of the various projects 16
 Examples of committee
Work safety committee / Advisory
committee, which meets regularly to
discuss action required about unsafe
working conditions/methods
• HR manger
• Works manager
• Safety manager
• Department representatives
• Union representatives
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 Examples of committee
The Accounting Standards Board (ASB)
• ASB took over the role of setting
accounting standards from the
Accounting Standards Committee
(ASC) in August 1990.
• Aims to promote consistency in
corporate reporting by creating
financial reporting standards to
which major businesses are expected
to adhere
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 Examples of committee
Ethics committees
Oversees the working practices &
procedures in an organisation with
respect to:
–Conflicts of interests
–Confidential information
–Complaints of customers
–Transactions involving related parties
of the company
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 Advantages & Disadvantages of
committee
Advantages
Responsibilities are shared
Ability to undertake a larger
volume of work
Decisions are based on a
group’s assessment of facts &
ideas
Pools talent, judgement &
allows specialisation
Disadvantages
Slower decision-making
Decisions may represent
compromise solutions rather
that optimum solutions
Waste time & resources
Manager’s may abdicate their
personal responsibility for DM
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 Advantages & Disadvantages of
committee
Advantages
Improves coordination
between work groups
Provides a focal point for
information & action within
organisation
Improves communication
Disadvantages
Some experienced committee
members may dominate
Excess procedural matters
reduces the time available for
the discussion of substantive
matters
Cannot act quickly & flexibly
to meet sudden changes in
situation
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 How to Overcome Pitfall of
Committees
Authority – clear lines of authority &
responsibility
Size – committees should be large enough to
promote deliberation & include the breadth
of expertise required for the job but not so
large as to waste time or foster indecision
Membership – careful selection of members.
Members must be representative of the
interests they are intended to serve & must
also possess the required authority and be
able to perform well in a group.
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 How to Overcome Pitfall of
Committees
Subject matter – should be limited to
subject matter that can be handled in a
group discussion
Minutes – careful minutes of meeting
must be taken & circulated in draft form
for correction or modification before
the committee approves the final copy
Cost effectiveness – committees can be
justified only if the costs are offset by
tangible & intangible benefits.
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 Roles of Chair & Secretary of
Committee
One person at the meeting will act as
chairperson & guide the proceedings
Responsibility:
–Keeping the meeting to a schedule & to the
agenda
–Maintain order
–Ensuring correct procedure is observed
–Ensuring impartiality
–Ascertaining “the sense of the meeting”, by
summing up, or putting the issues to a vote &
declaring the result
–Depending on the level of formality of the
meeting checking & signing the minutes 24
 Skills and Knowledge
Effective chairperson must have:
–Sound knowledge of relevant regulations
–An awareness of non-verbal behaviour
–Ability to summarise
–Skill to communicate rulings clearly but
tactfully
–Ability to silence people in a firm & friendly
manner
–Ability to be decisive
–Ability to ask opening questions
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 Secretary
Before the meeting
• Fixing the date & time of the meeting
• Booking the venue
• Preparing & issuing the agenda & other relevant
documents
During the meeting
• Assisting the chairperson
• Making notes
• Advising the chairperson on points of procedure
After the meeting
• Preparing minutes
• Acting on & communicating decisions
• Dealing with correspondence 26
THANK YOU

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