Line functions involve the core income generating functions of the company, whether it be the production of goods or providing services to customers. Business activities can be broken down into line functions and staff functions. Day-to-day business operations are the daily activities of a business with an aim to generate sufficient revenue to earn a profit for the company and increase the value of the business. The legal department is looking over a patent application prepared by outside counsel related to a new copier process developed by the company's research and development department. They are also entering payroll data and keeping track of payroll, income, and sales tax obligations. The accounting department is running through last month's numbers to determine the company's income and expenses. The human resources department is busy screening applications, setting up interviews and interviewing applicants to fill both sales and production vacancies with the company. Now, let's head over to the staff side for a while. Finally, a third group of salespeople are attempting to gain government contracts with local, state, and federal agencies. Another group of salespeople are making pitches to various distribution channels, such as office supply stores, to have the copiers placed in their stores. Some are out of the office on sales presentations. Upstairs in a different part of the facility, a group of salespeople are cold calling businesses in their target market for sales appointments in an attempt to sell copiers. Down on the production floor, workers are clocking in and will spend the next eight hours on an assembly line assembling photocopiers. We'll take a look at what's going on with the line groups first. Let's walk through the day in the life of a manufacturing business. Examples of Day-to-Day Business Operations While staff activities do not directly relate to the generation of the business's profits and achievement of its goals, they provide needed support to the line groups to help them generate revenue and accomplish the business's goals. Examples of staff functions include the legal department, human resources department and accounting department.
They provide advisory services and act as controls on the line groups. Staff is responsible for creating and maintaining the business's infrastructure. Staff groups are responsible for supporting the line groups. In other words, the line employees make the money and add value to the company as an asset by generating profit and increasing market share. In a service-orientated company, the line workers are the individuals responsible for serving its customers (think of accountants, doctors, stockbrokers, lawyers, store salespersons, or house painters). For example, in a manufacturing business, the line workers are responsible for the production of the products that the company produces for sale. They are involved in the revenue generating process of the company. Line groups perform tasks that are directly related to accomplishing the company's objectives. Functions of Day-to-Day Business Operations Line Functions
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