Page 69 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

trying to sell a new product through middlemen, dealer relations become a crucial activity Notes
and has to be assigned a higher position in the sales organisation.
Step IV

Assignment of personnel to positions consists of deciding on two things. First of all, to hire,
select or recruit specialists to take up the positions so that the organisation gets the best personnel
in its armour who will perform the jobs in a resplendent manner and, secondly, modifying the
positions so as to take the services of existing personnel after training and developing them so
that they fit in the requisite positions. An organisation may take either of the two ways. When
there is no talent in the organisation consummate with the requirements of the jobs then the
organisation may hire or recruit personnel from outside. This may also be done if the management
requires young blood in the organisational lines. Further, if the individual possesses the skills
and capabilities then the job may also be modified or changed to fit these individuals. Generally,
planners prefer, whenever the situation permits, to have individuals grow into particular jobs
rather than to have jobs grow up around individuals.
Assignment of personnel to positions involves the following activities:
1. Defining relation between positions – how many individuals report to a particular superior –
and the span of control.
2. Defining the nature of authority in respect of each position (delegation of authority, lines
of authority, lines and staff).

3. Assigning personnel to positions.
Step V
Control and coordination in a sales organisation can be done both formally and informally.
Formally, it can be done by written job description, rules, regulations and procedures. Written
job description is an important formal instrument for coordination and control. It gives details
about the various attributes of each job like reporting relationships, job objectives, performance
measurements and duties and responsibilities. Informally, it can be done by sheer force of
personality coupled with ability to attract and hold the loyalty of followers.
One of the methods of coordination is the chain of command. We also try to have provision for
growth, flexibility and control. Another instrument of control is an organisational chart because
many things are specifically stated in it. An organisational chart shows the formal relationships
between different positions. It helps in understanding the nature of authority and responsibility
of each personnel with respect to each aspect of operation. This helps in avoiding friction which
would exist if it had not been there.

A supplement to organisational chart is an organisational manual which incorporates the company
as well as departmental chart. The organisational manual is an extension of the organisational
chart. The organisational manual typically contains write-ups of job descriptions and specifications
and summaries of major company and departmental objectives and policies. The organisational
manual also contains a lot of information which helps the users to learn and understand the
nature of their responsibilities, authorities and relations with others.

Tasks
1. Discuss about the steps involved in developing the organization.
2. Discuss the statement "Is sales compensation driving the right behaviors”.

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