Group Decision Making

October 10 2025

The Committee System in Management: Pros, Cons & Examples for BBA/MBA Students

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What is a Committee in Management?

Think of a committee as a formal team or group of people brought together to handle a specific task, solve a problem, or make decisions. It’s not a separate department but an extension of the regular organizational structure. Instead of one manager making all the calls, a committee pools the knowledge and experience of several individuals.

These groups are found at all levels of a company, from the board of directors at the top to project-specific teams on the ground floor. They are especially common in medium to large organizations where diverse expertise is needed.

Simple Example: A university might form a “Disciplinary Committee” with teachers and administrative staff to handle cases of student misconduct. No single person has to bear the entire responsibility of the decision.

Why are Committees Formed? (Key Purposes)

Organizations create committees for several strategic reasons:

To Generate Ideas: By bringing people from different departments together, new suggestions and recommendations can emerge that a single person might not think of.
To Solve Complex Problems: Committees act as a forum to discuss existing challenges and brainstorm innovative solutions from multiple perspectives.
To Develop Policies: They are often tasked with helping create or update important organizational policies, like a company-wide “Work from Home” policy.
To Facilitate Exchange: They provide a structured environment for members to freely exchange ideas and information.

Key Characteristics of a Committee 📝

While committees can vary, they generally share a few common traits:

A Defined Purpose: A committee is formed to achieve a specific goal, like reviewing the annual budget or planning a new product launch.
Fixed Membership: It usually has a set number of members who are appointed (or sometimes elected) based on their expertise or the department they represent.
Formal Rules: Committees operate with clear rules and procedures. For instance, a decision might only be valid if a minimum number of members (a quorum) are present.
Defined Authority: The committee’s power is clearly spelled out. Some committees can make final decisions, while others can only advise or make recommendations to a senior manager.

Advantages of Using Committees ✅

Committees can be incredibly powerful tools when used correctly. Here are the main benefits:

1. Better Decisions Through Teamwork

The old saying “two heads are better than one” is the core principle here. A committee with members from Marketing, Finance, and Production can analyze a problem from all angles, leading to more well-rounded and effective solutions than a single person could develop.

2. Prevents Misuse of Power

Giving one person too much authority can be risky. A committee distributes power, reducing the chance that one individual will make a biased or poor decision that could harm the organization.

3. Represents Different Interests

Major decisions often affect many departments. Committees ensure that representatives from these different groups have a voice, leading to more balanced and fair outcomes that everyone can support.

4. Improves Coordination and Communication

When representatives from various departments meet regularly, it naturally improves coordination. Information is shared directly, preventing misunderstandings and ensuring everyone is on the same page.

5. Motivates Employees Through Participation

When employees are part of the decision-making process, they feel more valued and are more likely to be committed to implementing the final decision. This participation is a powerful motivational tool.

6. Excellent for Executive Training

For junior executives, being on a committee is a fantastic learning experience. They can observe senior leaders, learn about different parts of the business, and develop their own strategic thinking skills.

Disadvantages of Using Committees ❌

Despite their benefits, committees can also be a source of frustration. A famous sarcastic definition calls a committee “a group of the unfit, appointed by the unwilling, to do the unnecessary.” Here are the common pitfalls:

1. High Cost in Time and Money

Committees are expensive. Imagine five senior managers, each earning a high salary, sitting in a two-hour meeting. If the meeting doesn’t result in a clear decision, the company has wasted a significant amount of time and money.

2. Slow Decision-Making (Analysis Paralysis)

Getting everyone to agree takes time. Committees can get stuck in endless debates and discussions, delaying important actions. This is often why people joke that committees are formed to avoid making a decision.

3. Compromise Over Quality

Often, to get everyone to agree, the final decision is a watered-down compromise that doesn’t fully satisfy anyone. The “best” decision is sometimes sacrificed for a decision that simply has the most votes.

4. Suppression of Good Ideas

In a group setting, some members might hesitate to share a brilliant but unconventional idea for fear of criticism or to avoid conflict. This can lead to “groupthink,” where conformity wins over innovation.

5. Domination by a Few Members

True group judgment is rare. Often, a committee is dominated by its chairperson or one or two loud, influential members. The final decision reflects their opinion rather than the collective wisdom of the group.

6. Nobody is Truly Responsible

This is a major flaw. When a decision is made by a group, who is accountable if it fails? Responsibility is split among all members, making it easy for everyone to blame someone else. This is known as the diffusion of responsibility.

October 6 2025

What is a Committee System? (Advantages & Disadvantages Explained)

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## What Exactly is a Committee?

A committee is a group of two or more people, formally appointed and organized, to whom a specific matter or problem is committed. The group is expected to meet, deliberate, and either make decisions, offer recommendations, or perform a specific function.

Think of it as a formal team designed to bring diverse perspectives and expertise together. According to management experts Koontz and O’Donnell, a committee is a body of persons appointed or elected to meet on an organized basis for the consideration of matters brought before it.

## Types of Committees

For your exam, it’s crucial to know how to classify committees. They can be categorized in a few key ways:

By Structure and Permanence:

Standing Committees (or Permanent Committees): These are a permanent part of the organization’s structure. They deal with recurring issues and have a long-term mandate.
- Example: A company’s Finance Committee that meets quarterly to review budgets, or a university’s Admissions Committee.
Ad Hoc Committees (or Temporary Committees): These are created for a specific, one-time purpose and are disbanded once their task is complete.
- Example: A committee formed to organize the annual company retreat or a task force assembled to investigate a specific workplace accident.

By Authority and Power:

Executive Committee: This committee has the authority to make binding decisions and order their implementation. It holds executive power within its defined scope.
- Example: A company’s Board of Directors, which can make major strategic decisions.
Advisory Committee: This committee’s role is to investigate an issue, deliberate, and provide recommendations to a manager or executive. It does not have the power to implement its own suggestions.
- Example: A committee of factory workers asked to recommend new safety procedures to the plant manager.

## The Advantages of a Committee System 💡

Why do organizations rely so heavily on committees? Here are the key benefits you should mention in your exam.

Pooling of Knowledge and Expertise: Committees bring together individuals from different departments and with diverse skills. This synergy often leads to more well-rounded and creative solutions than a single manager could produce.
Improved Coordination: By including members from various functional areas (e.g., marketing, finance, operations), committees help break down organizational silos and ensure that decisions are coordinated across the entire business.
Enhanced Motivation and Buy-in: When employees are involved in the decision-making process, they are more likely to feel valued and motivated. They develop a sense of ownership over the decision and are more committed to its successful implementation.
Better Quality Decisions: The process of group deliberation, debate, and discussion helps to vet ideas thoroughly. Flaws are more likely to be identified, and the final decision is often more balanced and robust.
Excellent Training Ground: Serving on a committee exposes junior managers to different business problems, perspectives, and the complexities of group dynamics. It’s a valuable tool for developing future leaders.

## The Disadvantages and Pitfalls 🐢

No tool is perfect. Committees are infamous for their drawbacks. Be ready to discuss these critical limitations.

Slow Decision-Making (“Analysis Paralysis”): Committees can be notoriously slow. Arranging meetings, allowing everyone to speak, and reaching a consensus takes time, which can be a major liability in a fast-paced environment.
High Cost: Committees are expensive. The cost is not just in direct expenses but in the value of the man-hours spent by (often highly-paid) managers sitting in meetings instead of performing their primary duties.
Compromise over Conviction: To reach a group decision, members often have to compromise. This can water down a strong, innovative idea into a mediocre solution that everyone can agree on but no one is passionate about.
Diffusion of Responsibility: When a decision is made by a group, it’s difficult to hold any single individual accountable if things go wrong. The responsibility is spread so thin that effectively, no one is responsible.
Potential for Groupthink: This is a psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome. Members may suppress dissenting opinions to avoid conflict, leading to a poor decision.