Page 73 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

Notes
Figure 5.3: Sales Department with Line Authority Subdivided by type of Customer

General Sales Manager

Director Manager Director Manager, Director Manager, Director
product lumber of sales construction of sales mining sales
research & industry industry promotion &
development sales planning industry training sales advertising

Branch Branch Branch
Sales Sales Sales
Managers Managers Managers

Sales Sales Sales
Personnel Personnel Personnel

5.8 Line and Staff Sales Organisational Structure

Line and staff sales organisational structure results as the size of the operation grows. It is
characteristically found in medium and large firms with sizeable sales staff selling diversified
product lines. Staff are specialists in their own field which can be sales training, service, sales
analysis, planning dealer relations, sales promotion, sales personnel development, etc. A pool
of experts become available for providing assistance in specialised fields.

Organisation is headed by Managing Director who has line managers called Regional Managers
and Staff Managers, who look after the staff functions Manager reporting to him.
Customer Service Manager is incharge of feeding in information and facilitation of customer
services sales promotion.
Sales Promotion Manager performs the advisory function with respect to sales promotion
activities of the organisation and correlates with the Regional Sales Manager as to promotional
needs.
Regional Managers are the line managers responsible for operating results in their own territories
and control their own field staff.
Problems with line and staff is basically one of coordination reports. Moreover recommendations
take time to compile and there is time lag which hinders active coordination. Various problems
of interpersonal relationships also arise. Staff sometimes assumes the authority to issue orders
and direction. This leads to dual subordination and can be overcome if authority and responsibility
are specifically written down.

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