During the educational reform of 1990s in Taiwan, two important committees had been differentiated from the administration, one is “the Committee for Teachers Review (Jiau-Ping- Huei)” and the other is “the Teachers’ Grievance Committee (Shen-Ping-Huei).” The present study interprets deductively their functions in accordance with the seven structural characteristics proposed by the system theory. The seven characteristics are: (a) functional differentiation, (b) relative autonomy of subsystems, (c) generalization of value, (d) realization of value through due process, (e) further differentiation of internal roles and openness of interactions between roles, (f) integration of the whole system through the generalized communication media and having confidence on the media, (g) reflexivity of the media. System possessing these seven characteristics can successfully evolve and sustain in the more and more complex environment. In order to investigate the functions of the Teachers’ Grievance Committee in the higher education institutions, 151 cases, which were petitioned or appealed during 1993-2006 by college teachers and justified by the Central Teachers’ Grievance Committee of the Ministry of Education, were collected and classified into 17 categories and then interpreted in terms of legality. The results show that since the establishment of the Teachers’ Grievance Committee, the higher education institutions have restructured their organizations and changed their administrative measures in accordance with rulings of the Teachers’ Grievance Committee. Consequently, the organizations of the higher educational institutions have been becoming healthier and the administrative behaviors becoming more likely to follow the due process. This is the prerequisite for the self-regulation of higher education institutions. Therefore, the Teachers’ Grievance Committee has also facilitated the realization of the self –governance of the higher education.