A Committee:
A body of people who are obliged to Keep minutes, but waste hours.
As a manager be aware of the formation of committees, if they meet on a regular basis just because they want to get to know each other, is costing your company big time and in the end may not even bring the results that the committee was formed to achieve.
This is where the costs are incurred, the more members that the committee is made up of, has a direct cost and any additional costs that a dispute or disagreement introduces.
Calculating the cost of Committee’s
- The Hourly rate per member (rate)
- The duration and number of meetings per period (Duration)
- Number of periods per year (repeats)
- Duties and functions of each member (this could impact their normal working environment) withing the committee, as this will add more time/cost to be calculated (Additional time)
Cost = ([Total]rate x Duration x repeats) + (Additional Time x [Individual]rate)
These costs can include direct financial expenses, time investment, legal fees, and opportunity costs. Understanding these factors helps organizations and individuals make informed decisions about forming or participating in committees.
As we can see from the above, the functions and value of a committee need to be carefully examined by management to evaluate the cost and effectiveness of any committee before it is created and allowed to function.