In 1996 Vershire Company was a diversified packaging company with several major
divisions, including the Aluminum Can division—one of the largest manufacturers of
aluminum beverage cans in the United States. Exhibit 1 shows the organization chart for the
Aluminum Can division. Reporting to the divisional general manager were two line
managers, vice presidents in charge of manufacturing and marketing. These vice presidents
headed all of the division’s activities in their respective functional areas.