10 important contributions of committees in cooperative management

10 important contributions of committees in cooperative management

Committees bring about a democratic character in the important affairs of cooperative management. The following benefits are derived from the use of committees:

(1) Joint Consultation:

Joint consultation is an effective means of bringing together different opinions on important matters. Misunderstandings confusions can be eliminated by discussions across the table.

Broad policy matters and objectives of the organisation are appropriate subjects for joint consultation as also are any specific problems. Mutually agreed upon interpretations of policies lead to a smoother implementation of management directives and orders.

(2) Enhancement of Co-Ordination:

Co-ordination between different functions and executives in charge thereof is essential for efficient running of the cooperatives. For example, co-ordination of sales, production and financial functions has to be achieved continuously in every business. Either of these factors can be the limiting constraint in a business at different times.

Every other aspect or function of the business has to be correlated to the particular limiting factor. Committee meetings provide the meeting ground for these functions so that they are balanced and integrated to one another.

(3) Technical Study:

Committees maybe constituted for undertaking special technical studies or research in any field of the business. These special committees do their deliberations by the submission of a report on the terms referred to them for study.

(4) Uniform Information and Policy Interpretation:

Committee meetings can be used as a common platform for interpreting broad policies and objectives of the organisation to different executives. This will ensure that everybody gets the same interpretation or information about policy matters and can have the proper perspective of his portion of the objectives and policies in relation to the overall policy and objective.

(5) Better Executive Decisions:

Though decisions taken singly or quicker, they need not necessarily be the best. Committee meetings bring together different viewpoints to typical problems and contribute towards clear thinking owing to mutual cross- examination. The net result is likely to be balanced and consistent decisions. Problems of overdue, resource mobilization, etc are subjects which need discussions in cooperatives.

(6) Educational Value:

Committees and meetings can be used as an educational forum in the sense of seminars or discussion and question sessions, and the like. New management techniques and philosophies, e.g., automation and integrated data processing, can very well be introduced into the thinking of the organization through such meetings. Such meetings will have an easier way for the acceptance of such ideas.

(7) Putting into Practice the Concept of Splintered Authority:

Matters affecting chains of command involve a consideration of splintered authority. In such cases several authorities are involved, and they might have a say in the matter before a final decision is taken. Committee decisions in such matter are therefore likely to be more acceptable to all because everybody will get an opportunity to have his say in the matter.

(8) Securing Support of Subordinates to Decision Taken:

Since decisions in committee meetings have a democratic flavour about them, they are readily acceptable to subordinates. The acceptance will be all the more easy if such committees have some representative from the ranks.

(9) Spreading of Responsibility:

Important or controversial business matters may not be tackled whole-heartedly and with confidence if a single executive is entrusted with it. In such cases it would not be wise to make him the scapegoat for all criticisms, e.g. bonus decisions. A committee should better be formed for such issues so that all members could share the responsibility for decisions in respect of them.

(10) Avoidance of Undue Concentration of Power or Authority:

There are certain business matters which should not be left entirely in the hands of one executive only. There is likely to be abuse of authority or power in these cases, to the detriment of the company. Investment decisions loan operations, etc in cooperatives involving heavy financial commitments should be taken at committee meetings so that all the members can acts as mutual checks on one another.