Committee Organization

          In committee organization a formal group replace individual managers at one or more position in an organization's structure. Authority and responsibility are assigned to the group, made up of committee members who usually are chosen from the various levels of management. All decisions or recommendations are studied thoroughly and are evaluated by the committee.
          Seldom, if ever, is a business firm organized completely along committee lines. This form of internal organization is best used only in those areas of management that require much deliberation and various points of view - for example, in the research department. Committees are especially effective in making decisions about projects to be undertaken, in comparing results or technological processes, and in developing new products. In such areas a committee enables all concerned departments to participate in decision making, and better management cash result.
          Large business firms would not think of adopting a sales budget for the coming year without careful planning and consultation among all departments affected. A committee can be used for this purposes. It probably would include representatives from production, purchasing, financing, engineering, and accounting, as well as from the marketing department. All committee members are responsible for and participate in successful marketing plans. and they must have detailed information about sales plans in order to perform their work in a coordinated manner.
          Most committee operate within the basic internal organization of the firm - line, or line and staff, or some other form. This type of committee is not to be confused with a standing staff committee, which provides expertise to top management through an advisory relationship.
          Committee organization is generally felt to be slow in making decision and most decisions represent some kind of compromise. In addition, many committees violate some of the principles of management that we reviewed earlier. Even so, companies do exist which report great success with such a plan of internal organization. Most Admit that special circumstances exist within their firm which have suggested its use or made it appropriate for adoption - such as the necessity of having more expertise in basic decisions. The committee organization may be used in some management areas without complete adoption throughout the company.