Certified Human Resource Professional (CHRP) Practice Exam

What directly contributes to an organization's bottom line?

1. Line function

2. Staff function

3. Support function

4. Overhead function

The correct answer is: Line function

The correct response highlights the importance of line functions within an organization. Line functions are directly involved in the primary activities that produce goods or services and drive revenue. Employees in line functions, such as production, sales, and operations, are responsible for creating the products that the organization offers to the market. Their performance has a direct impact on the organization's financial outcomes, as they contribute to the income generated through sales and services. In contrast, staff functions serve in an advisory capacity and support line functions, but they do not directly produce revenue. Support functions, while essential for the overall operation of the organization, offer services that enhance productivity but are not directly tied to generating profits. Overhead functions involve costs that do not directly relate to production or sales processes, thus having an indirect effect on the bottom line. Understanding the role of line functions is crucial for comprehending how organizations achieve profitability and maintain competitive advantage.