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CRITICAL THINKING EXERCISES CRITICAL THINKING EXERCISE 8-1 Building an Organization Chart Dr. Rea Searge is president of Peabody Researchers, Inc, a pharmaceutical company. Peabody uses a line-and-staff structure to organize its employees. On a separate sheet of paper, draw an organization chart for Peabody Researchers, Inc. In addition to Dr. Searge, Peabody has the following employees: A quality control officer A vice-president of production 150 research and development employees A sales force of 100 people A vice-president of finance Marketing managers for three regions A vice-president of marketing A director of personnel A vice-president of research and development Production managers for three product lines An administrative assistant to the president A production force of 600 people NOTES FOR CRITICAL THINKING EXERCISE 8-1 The following people are staff: director of personnel vice-president for research and development administrative assistant to the president research and development department quality control officer The rest have line positions. Let the students draw the chart on the board with as little assistance as possible so they can think it through. A possible solution is given on the following page. 8.1 Vice President Production Vice President Finance Vice President Marketing Vice President Research and Development Personnel Officer 150 R&D employees Marketing Manager – Region A Marketing Manager – Region B Marketing Manager – Region C 30 sales employees 40 sales employees 30 sales employees Production Manager – Product A Production Manager – Product B Production Manager – Product C 200 Production employees 200 Production employees 200 Production employees CHAPTER 8: Organizing Structure Quality Control Officer PEABODY RESEARCHERS, INC. Possible Organization Chart 8.2 ANSWERS TO CRITICAL THINKING EXERCISE 8-2 (continued) Administrative Assistant President