The committees that are managerial in nature and are given the power to make decisions and to undertake one or most of the managerial function may be called plural executives. An ideal example of a plural executive is the board of directors.
Plural Executive in Decision Making
Plural executives are often engaged in policy making. Many companies form executive or management committees to develop basic polices and adopt major strategies. Such committees go by various names-Management Committee, Corporate Policy Committee, Operating Policy Committee etc.
The extent of authority of these committees varies considerably, although their influence on decision making is perhaps greater in strategic planning than in any other area. Such committees, also engaged in control, for their concern with strategic planning must be followed up to ensure that activities conform to plans.
The plural executive is an ideal negotiator or disputes, since a settlement by a group will usually be more acceptable to parties concerned than that of a single arbiter.
Sometimes plural executive depends on accurate and adequate staff work, Moreover, in order to make group deliberations in plural executive productive, facts and analysis must be developed and presented so that members have readily available the data on which to have a decision.
Plural Executive in the Execution of Decision
A plural executive is primarily used for decision-making rather than its execution. Decision/policy implementation is primarily carried out by managers who set standards and procedures to guide and govern the execution of policies, establish controls to ensure adherence to standards, improve inter divisional co-ordination, and meet various emergencies as they arise.
Board of directors as Plural Executive
A board of directors usually makes decisions and has the authority to manage a company, although it may not exercise it.
In fact the chairman/president is the dominant figure on the board with the other members often being little more than advisers. Thus the board of directors can seldom be called plural executive because a single executive often formulates the policies.
A board may have both insiders and outsiders as members. Some recommend that company directors own stocks. Some others speak about workers’ representation on the board to make the concept of plural executive in real practice.
Related Content of Committees:
- Various way of Making Committees Successful
- Reasons for using Committee to Achieve Business Goal
- Nature of Committee
- Definition of Committee
- Various circumstances of misuse of committees