Question

reference organization chart 6.2:

in this organization:

• law, engineering, and finance are considered product groups.
• because this organization is too complex, it would be better to return to a functional structure.
• global product heads provide the function of a full-time staff integrator.
• global product heads are usually accountable for profit and loss of their product in worldwide sales.

Explanation:

Analyze the organization chart

The provided organization chart (Chart 6.2) shows a Hybrid Organizational Structure combining functional departments and product divisions. Under the President, we have functional staff departments (Law, Engineering, Finance), an International division (with Regional Directors), and a Product Division. The Product Division is further divided into global product groups: Global Truck Components, Global Auto Components, Global Airplane Components, and Global Bus Components.

Evaluate the options

• Option 1: "law, engineering, and finance are considered product groups." This is incorrect; these are functional staff departments supporting the entire organization.
• Option 2: "because this organization is too complex, it would be better to return to a functional structure." This is a subjective normative statement and does not describe a factual characteristic of the current organization.
• Option 3: "global product heads provide the function of a full-time staff integrator." This is incorrect; global product heads are line managers with direct authority over their divisions, not staff integrators who coordinate across divisions without formal authority.
• Option 4: "global product heads are usually accountable for profit and loss of their product in worldwide sales." This is correct. In a global product division structure, each product division head has worldwide responsibility for that specific product line, including its global profit and loss (P&L) performance.

Answer:

• law, engineering, and finance are considered product groups.
• because this organization is too complex, it would be better to return to a functional structure.
• global product heads provide the function of a full-time staff integrator.
• global product heads are usually accountable for profit and loss of their product in worldwide sales. (Correct answer)