Page 71 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

"It's like a family member who has terminal cancer," said Gary Brentlinger, human resources Notes
director for Andersen's offices in Houston, Austin, San Antonio and New Orleans. "We're
watching the firm die."
As people have left and files have gone into storage, Brentlinger said Andersen staff
members have removed papers from office in a downtown Houston skyscraper and turned
off the lights, leaving only furniture and artwork.
Questions
1. The most established and successful companies are prone to abrupt end - why?

2. Analyse how business stability can be achieved for longer periods.

Self Assessment

State whether True or False:
8. Lines organisation is extensively used in smaller firms or those dealing in a narrow
product line, or selling in a limited geographical area.

9. Customer division of line of authority is suitable when almost similar products are sold
in the market and are marketed to different types of products..
10. A supplement to organisational chart is an organisational manual which incorporates the
company as well as departmental chart.
11. The sales organisation structure can also exist in two other forms which are vertical sales
organisation and horizontal sales organisation.
12. Line division of line of authority is suitable when almost similar products are sold in the
market and are marketed to different types of customers.
13. A sales organisation can exist in numerous forms
14. Organisation is headed by Managing Director who has line managers called Regional
Managers and Staff Managers
15. Formal job description is an important formal instrument for coordination and control

5.6 Basic Types of Organisational Structures

The sales department's structure evolves from the needs of the business. Different companies
have different organisational structure depending upon their needs. The organisational structure
is affected by company size, practices of competitors, marketing channels, customers and the
personalities and abilities of personnel.

5.6.1 Lines Sale Organisation

It is the most basic form of the sales organisation characterised by a chain of command, running
from top sales executive down to salesman level.
Since line of authority has vertical structure, executives at each level are generally
independent of all others at the same level. Responsibilities are usually delineated through
assignment of quotas or sales targets. An example of lines sales organisation is the liquor
division of Jagatjit Industries. Each level is connected to the subordinate level by scalar lines of
command.

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