Dyag Instruments manufactures and assembles diagnostic instruments for the medical profession. The operations manager is responsible for Dyag's two production departments: Manufacturing and Subassembly, and Final Assembly. About 50 percent of the component parts of every diagnostic instrument is purchased from suppliers and assembled by Dyag. All other component parts are manufactured and assembled by Dyag.

The purchased subassemblies are expensive and a critical part of the instruments manufactured. The Purchasing Department therefore reports to the operations manager and to the financial services manager, who are both at the same organizational level.

The diagnostic instruments require very close tolerances in manufacture and assembly. The operations manager created a staff department, Engineering Services, to see that these tolerances are maintained.

Customers recently returned several defective instruments. Engineering Services determined that "inconsistent assembly procedures" during final assembly caused these instruments to malfunction. As a result, the Engineering Services Department wrote a new Assembly Procedure Manual and distributed it to the workers in Final Assembly. Engineering Services then directed the implementation of the new procedures. The final-assembly manager also received a copy of the manual for information purposes.

Required:

a. Prepare an organization chart which reflects the portion of the Dyag organization described above.

b. Comment on the inadequacies of Dyag Instruments' organizational relationships in terms of 1. Accountability.
2. Authority.
3. Responsibility.