Committees in the business organisation

What is committee?

Committee is a group of people to which some matter is committed.

-permanent

-have authority

-follow procedures

-provide way to resolve difficult decisions

Rigid procedures:

-speaking

-voting right

-proposing motion which is a formal proposal for action made to deliberative assembly for discussion and vote

-right of attendance

-the construction of a agenda

-quorum which is a gathering of a minimal number of members of an organisation

Rules:

-to promote smooth running of a committee

-to ensure consistency are maintained

-to enable both sides debating for cases

-to minimise the effect of bullying tactics

-to ensure record of proceedings is kept

* A formal meeting should be convenced in accordance( go along) with Articles of Association.

*Quorum

-to make the meeting a discussion group instead of taking decision

-To adjourn/ delay the meeting

*Addendum

-Amendment

-simply add words

*Point of order

-an objection about preceived irregularity

-in conducting meeting

Size of committee:

-Large, lack of individual time to give of point of view for everybody

-Small, lack of breadth of expertise

A successful committee should have:

-be representative of all interest

-have a capable chairman

-choose suitable subjects for action

-circulate reports prior to the meeting

-have clear cut terms of reference

-have skills and experience

-be worth the cost of its operation

Purpose of committee

-Creating new ideas

-have excellent means of communication

-democratic

-combining abilities/ gather information

-coordination the efforts of people from divergent disciplines

-representative

-making recommendations

Types of committee

-Excecutive committee/ Board of directors, appointed by shareholder

-Standing committee, to deal with routine business

-Ad-hoc committee, temporary formed to complete specific task

-Sub- committee, to relieve the parent committee of routine work

-Joint committee, to coordinate the activites

-Management committee

Board of Directors
-a group of people legally charged.
-govern a company.
-elected by shareholders.
-purpose:-

• lay down strategy,generally policy and broad sectional policies.
• ensure legal standards are net and the company is operating in accordance with its Articles of Association.
• sanction capital expenditure and the method of disposal of profits.
• ensure sufficient capital is available and maintain an efficient system to control the affairs of the company.

Steering Committee
-oversee a major project.
-allocate scarce IT resource and planning for future system development.
-role:-

• ensure that all IT activities are in line with the strategic plans of the organisation as a whole.
• provide leadership at senior level for the exploitation and management of IT
• ensure that resource allocation decisions are effective
• co-ordinate requirements in any organisational restructuring.
• create the terms of reference for the project teams.
• monitor the progress of the various projects.

Work Safety Committee

• human resources manager
• safety officer
• department representatives
• union representatives
• works manager

The Accounting Standards Board(ASB)
-setting accounting standards from the Accounting Standards Committee(ASC)
-promote consistency in corporate reporting by creating financial reporting standards.

Ethics Committee

• conflict of interest
• confidential information
• complaints of customers
• transactions involving related parties of the company.

Advantages of Committee

• responsibilities are shared.
• ability to undertake larger volume of work
• decisions are based on groups
• Pool talent,judgement and allows specialisation
• Improve coordination between work groups
• provide focal point for information and action within organisation.
• Improve communication.

Disdvantages of Committee

• slower decision making
• decisions may represent compromise solutions rather than optimum solutions
• waste time and resources
• managers may abdicate their personal responsibility for decision making
• some 'experienced' committee members may dominate.
• excess procedural matters reduces the time available for the discussion of substantive matters.
  
• cannot act quickly and flexible to meet sudden changes

The Chair
-Responsibilities:-

• Keeping the meeting to a schedule and to the agenda.
• Maintaining order.
• Ensuring correct procedure.
• Ensuring impartiality.
• Ascertaining "the sense of the meeting"
• Depending on the level of formality of the meeting.

-Skills and knowledges should have:-

• Skills in communicating rulings clearly but tactfully
• Ability to decisive
• Ability to silence people in a firm and friendly manner.
• Skills of summarising.
• Awareness of non-verbal behaviour
• Sound knowledge of the relevant regualations.

The Secretary
-Responsibilities:-
(i)Before the meeting:-
-fixing date and time.
-book the venue.
-preparing and issuing the agenda and other relevant documents.

(ii)During the meeting:-
-assisting the chairperson.
-making notes.
-advising the chairperson on points of procedure.

(iii)After the meeting:-
-preparing minutes
-acting on and communicating decisions.
dealing with correspondence.