(Appendix) Rockelle Inc. is a holding company with three major divisions as depicted on the accompanying organizational chart. The three division presi¬ dents report directly to Martin Willis, the vice president of corporate operations. In general, Rockelle has preferred a decentralized relationship with these three divisions; however, the managers of planning for each division have an indirect reporting relationship to Anne Kleine, the vice president of corporate finance, who is responsible for coordinating the corporate planning process.

The organizational chart also displays the internal reporting relationships within Leenldn Company. A description of each vice president’s area follows.
* Joan Rogert’s responsibilities as vice president of finance include financial planning, general accounting, and cost accounting. Roger Mellon reports to Rogert and manages the planning function for the division.
* Gene Williams, vice president of manufacturing, oversees the production of Leenkin’s main product, office furniture.
■ Maureen Seert, vice president of distribution, handles the packaging and dis¬ tribution of the office furniture through a network of wholesalers.
■ As director of personnel, Brian Moyer is responsible for the sales relationships with retail outlets.
■ John Archer, vice president of promotion, produces all advertising material, including a bimonthly catalog of Leenkin’s products.
* Dan Walker, vice president of engineering, is responsible for product devel¬ opment and design, machine implementation, time study analysis, and quality control.

a. Define line and staff functions in an organization.

b. Describe any potential conflicts that may occur between line and staff em¬ ployees in this organization based only on your understanding of the orga¬ nizational chart and descriptions of job responsibilities.

c. Discuss the benefits and disadvantages of the indirect reporting relationship of Roger Mellon.

d. Identify the job function of each of the following individuals at Leenkin Company as a line or a staff function, and explain why. 1. Gene Williams 2. Joan Rogert 3. Maureen Seert 4. Dan Walker

(CMA adapted)

LO2

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President Rockelle, Inc. Terry Kean Vice President Corporate Finance Anne Kleine Vice President Corporate Operations Martin Willis Vice President Legal & Administration Division President Meadow Associates Division President Morris Inc. Division President Leenkin Co. Michael Kane Vice President Finance Vice President Finance. Manager Planning Manager Planning Vice President Finance Joan Rogert Manager Planning Roger Mellon Vice President Manufacturing Gene Williams Vice President Distribution Maureen Seert Director Personnel Brian Moyer Vice President Sales Barbara Conklin Vice President Promotion John Archer Vice President Engineering Dan Walker