organization of the sales

8/13/2019 Organization of the Sales

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Organization of theSales Force


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Organization

Organization is the basic management functionof arranging the firms work activities .

Organization represents a continuation of thecompanys strategic planning process

Organization permits the assignment of specifictasks to a position.

Effective Organization eliminate delay and buckpassing


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Organizational structure

Structure involves the

ways in which an

organization divides

its activities intodistinct tasks and

then achieves

coordination among

them

CEO

MKT HRM FIN


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Components of Organization Structure


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Task of the sales Organization

Following Basic task must be accomplished by

organization

1. Maintenance of order in achieving a sales

force goals and objectives

2. Assignment of specific tasks and

responsibilities

3. Integration and coordination with other

elopements of the firm


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Organizational StructureEffective structure allows the maintenance or order

With out structure sale force will be in

state of confusion and turmoil

Goals and objectives will bemisunderstood,

Selling efforts will be misdirected

Channels of communication will be

blocked and inappropriate


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The size of the company and

Developing a sales organization

Formal and informal organization

Horizontal and vertical organizationCentralized and decentralizedorganizations

Span of controlThe line and staff position


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Formal organization


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Informal organization


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Vertical and horizontal organization

CEO

Regional or Zone sales manager

District sales manger

Sales supervisor

salesperson

Vert ical sales organization


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Horizontal sales organization

CEO

Punjab Sind AJK NWFPBalochistan


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Decentralization and Centralization

Decentralization The process of systematically delegating power and

authority throughout the organization to middle- and

lower-level managers.

Centralization The process of systematically retaining

power and authority in the hands of

higher-level managers.


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Decentralization and Centralization

Factors Determining the Choice ofCentralization

The complexity and uncertainty of the

external environment.

The history of the organization.

The nature (cost and risk)

of the decisions to be made.


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Establishing Reporting Relationships

Span of Management (or Span of

Control)

The number of people who report to a

particular manager.

There is no ideal or optimal

span of management.


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Span of management and Tall Versus FlatOrganizations

President

President

Tall Organization

Flat Organization


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Basic types of sales organizations

Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright 1992 by Houghton Mifflin Company. Used with permission.


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Product Departmentalization

Advantages

All activities associated

with one product can be

integrated and coordinated.

Speed and effectiveness ofdecision making are

enhanced.

Performance of individual

products or product groups

can be assessed.

Disadvantages

Managers may focus on

their product to the

exclusion of the rest of the

organization.

Administrative costs may

increase due to each

department having its own

functional-area experts.


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Customer Departmentalization

Customer Departmentalization

Grouping activities to respond to and interact with specific

customers and customer groups.

Advantage

Skilled specialists can dealwith unique customers or

customer groups.

Disadvantage

A large administrative staff

is needed to integrate activitiesof various departments.


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Location Departmentalization

Location Departmentalization

The grouping of jobs on the basis of defined

geographic sites or areas.

Advantage Enables the organization to

respond easily to unique

customer and environmental

characteristics.

Disadvantage

Large administrative staff

may be needed to keep track

of units in scattered locations.


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Combination methods

President

General sales manger

Product

X

General Sales Manager

Product

Y

Eastern districtCentral

district

Western

districtEastern District Central district Western district


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Departmentalization

Advantages

Each department can

be staffed by

functional-area

experts.

Supervision is

facilitated in that

managers only need

be familiar with a

narrow set of skills.

Coordination inside

each department is

easier.

Disadvantages

Decision making

becomes slow and

bureaucratic.

Employees narrow

their focus to the

department and lose

sight of organizational

goals/ issues.

Accountability and

performance are

difficult to monitor.


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Coordinating Activities

Coordination

The process of linking the activities of the

various departments of the organization.

The Need for Coordination

Departments and work groups are

interdependent; the greater the

interdependence, the greaterthe need for coordination.


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Relation ship with other

departments

Relations with marketing function

(Marketing Mix)

Relations with non marketing departments(R&D , Production, HRM, finance ,

accounting


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Major trend in sales organizations

TelemarketingInbound telemarketing

Outbound telemarketing

Direct marketingSystem selling Center


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Alternatives to Specialization

Work TeamsAn alternative to job specialization that

allows the entire group to design the work

system it will use to perform an interrelated

set of tasks.


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Job Specialization

Benefits of Specialization

Workers can become proficient at a task.

Transfer time between tasks is decreased. Specialized equipment can be more easily developed.

Employee replacement becomes easier.

Limitations of Specialization

Employee boredom and dissatisfaction with mundanetasks.

Anticipated benefits of specialization do not alwaysoccur.


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Alternatives to SpecializationJob Rotation

Systematically moving employees from one job to another.

Most frequent use today is as a training device for skills and

flexibility.

Job Enlargement

An increase in the total number of tasks workers perform.

Increases training costs, unions contend that workers

deserve more pay for doing more tasks, and the work

may still be dull and routine.

Job Enrichment

Increasing both the number of tasks the worker does and the

control the worker has over the job.


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Alternatives to Specialization

Job Characteristics Approach:

Core Dimensions

Skill varietythe number of tasks a person does in

a job. Task identitythe extent to which the worker does

a complete or identifiable portion of the total job.

Task significancethe perceived importance of the

task.Autonomythe degree of control the worker has

over how the work is performed.

Feedbackthe extent to which the worker knows

how well the job is being performed.


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The Job

Characteristics

Approach

Core jobdimensions

Personal andwork outcomes

Criticalpsychologicalstates

Experienced

responsibilityfor outcomesof the work

Skill varietyTask identityTask significance

Autonomy

FeedbackKnowledge of theactual results of

work activities

Employeegrowth-needstrength

High internalwork motivation

High-quality workperformance

High satisfactionwith the work

Low absenteeism

and turnover

Experiencedmeaningfulnessof the work

Figure 6.1

organization of the sales

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