Electronic Equipment Leasing Company (EEL) leases office equipment to a variety of customers. The company’s organization chart is shown below.

The four positions identified in the chart are described below:
Ralph Biddle, assistant controller, special projects. Biddle works on projects assigned to him by the controller. The most recent project was to design a new accounts payable system.
Betty Kelly, leasing contracts manager. Kelly coordinates and implements leasing transactions. Her department handles everything after the sales department gets a signed contract. This includes requisitioning equipment from the purchasing department, maintaining appropriate insurance, delivering equipment, issuing billing statements, and seeking renewal of leases.
Larry Dukes, chief accountant. Dukes supervises all the accounting functions. He produces reports for the four supervisors in the functional areas.
Janice Sefcik, director of human resources. Sefcik works with all departments of EEL in hiring personnel. Her department advertises all positions and screens candidates, but the individual departments conduct interviews and make hiring decisions. Sefcik also coordinates employee evaluations and administers the company’s salary schedule and employee benefits program.

1. Distinguish between line and staff positions in an organization and discuss why conflicts might arise between line and staff managers.

2. For each of the four managers described, identify whether their position is a line or staff position and explain why you classified it that way. Also, indicate any potential conflicts that might arise with other managers in the organization.

Transcribed Image Text:

Chief Executive Officer Vice Vice Vice President Purchasing Controller President Administration President Marketing Assistant Controller, Special Projects Ralph Biddle Leasing Contracts Betty Kelly Director of Data Processing Chief Accountant Larry Dukes Director of Advertising Manager Accounts Human Receivable Resources Janice Sefcik Accounts Payable Leasing Sales General Accounting