ExpertCommittees in Business Organisations
Learning outcomes
- Identify the purposes and types of committees.
- Evaluate the advantages and disadvantages of committee decision-making.
What is a Committee?
A committee is a group of people appointed for a specific function.
Types of Committees
- Executive: Has the authority to make decisions and implement them (e.g., Board of Directors).
- Advisory: Can only recommend actions; cannot enforce them.
- Standing: Permanent committees (e.g., Audit Committee).
- Ad-hoc: Formed for a temporary, specific purpose (e.g., a committee to plan the office relocation).
A company forms a group to organize the annual Christmas party. Once the party is over, the group dissolves. This is an example of a(n):
Committees vs Teams
A committee is usually representative (people from different departments coming together to discuss/decide). A team is operational (people working together daily to produce a specific output).
Pros and Cons of Committees
Pros: Consolidates diverse expertise, spreads responsibility, improves acceptance of decisions (consensus).
Cons: Slow decision-making, expensive (wastes man-hours), can lead to compromise decisions that please no one.
Which of the following is a major disadvantage of using a committee to make a business decision?
Exam Focus
If a scenario requires an urgent, crisis decision, a committee is the WRONG choice. Committees are for complex, high-stakes decisions where consensus and expertise are more important than speed.
What is the primary role of the 'Chair' of a committee?
An 'Advisory' committee:
Which of the following situations is LEAST suitable for a committee?
Ready to put this into practice?
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ACCA BT — Business & Technology Practice Exam 1
A premium, complete mock exam replication for ACCA BT (Business & Technology). This exam mirrors live computer-based testing parameters, featuring 46 objective test questions (Section A) and 6 multi-task scenario questions (Section B). It covers the entire syllabus: Business Organization, Structure & Governance, Technology & Regulation, Leadership, Personal Effectiveness, and Professional Ethics.