A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the committee. The committee organizational structure is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented. It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments.
Committee organizational structure provides integrated ideas of various related people of the company. Participative management in true form is visible under committee organization. It is an incentive to volunteer to from integrated ideas and to willingly follow them. New ideas and solutions of various problems are feasible with the committee organization. It is a very good example of democratic management wherein every member has an equal opportunity to raise his voice and come to a common solution. Flexibility and technical excellence are possible under this organization. The top management is relieved from certain problems. The company can encounter the changing and uncertain environment in a better way. It facilitates high quality and innovative solutions to technical problems. Coordination and control become easy because open discussion is invited in the committee. Ideas and specialized functions are feasible under committee organization.
However, committee organizational structure may prove ineffective in some cases because of time consuming and inefficient devices, aggressive attitudes of some persons and inactive role of a particular group. The committee organization should not be used to supplement or support inefficient managers. An able and competent top manager with the capacity to handle the proceedings of the committee and manage disgruntled employees during meetings can get the maximum benefits out of committee organization. On the contrary, a weak and submissive manager or chairman may cause a number of problems in committee organization.