Professional in Human Resources (PHR) Practice Exam

Which type of workgroups are referred to as line units?

1. Support teams for administration

2. Groups that conduct the core business of the organization

3. Human resources and recruitment teams

4. Financial management teams

The correct answer is: Groups that conduct the core business of the organization

The designation of workgroups as line units pertains to those teams that are directly involved in the fundamental activities that drive the core business operations of an organization. Line units typically focus on producing goods or delivering services that constitute the primary revenue-generating activities of the organization. In contrast, support teams for administration, human resources, and financial management teams serve essential functions but do not engage directly with the core business outputs. These groups provide support and enable the primary operations but are not considered line units because their work does not directly contribute to the creation or delivery of the product or service the organization is known for. This distinction between line units and support units is fundamental in understanding organizational structure and the division of labor within a company.