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
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