Sales Organisation
THE SALES ORGANIZATION
By: Vibhor Jain
Key Terms
Authority – the right to make decisions and carry out tasks Span of control – the number of people a superior is responsible for Chain of Command – the relationship between different levels of authority in the business Hierarchy – shows the line management in the business and who has specific responsibilities Delegation – authority to carry out actions passed from superior to subordinate Empowerment – giving responsibilities to people at all levels of the business to make decisions
Purpose of Sales Organization
Ideally organized sales department ◦ Eliminated duplication of effort ◦ Minimizes friction ◦ Maximizes cooperation Delegation of authority through ‘specialization’ Supervision becomes tough To achieve Coordination or Balance ◦ Avoiding technical nomenclatures ◦ Small, freely communicating groups
Sales Organization Concepts
Specialization
The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization.
Centralization
The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels.
Sales Force Specialization Continuum
Generalists
All selling activities and all products to all customers
Some specialization of selling activities, products, and/or customers
Specialists
Certain selling activities for certain products for certain customers
Purpose of Sales Organization
To define Authority
◦ Types of Authority
Line Authority carries power to require execution of orders by lower staff Staff Authority gives power to suggest Functional Authority enables specialists to enforce directives in a specific & limited field
◦ For smooth operations
Coordination Free flowing communication system
Line & Staff Authority
By: Vibhor Jain
Key Terms
Authority – the right to make decisions and carry out tasks Span of control – the number of people a superior is responsible for Chain of Command – the relationship between different levels of authority in the business Hierarchy – shows the line management in the business and who has specific responsibilities Delegation – authority to carry out actions passed from superior to subordinate Empowerment – giving responsibilities to people at all levels of the business to make decisions
Purpose of Sales Organization
Ideally organized sales department ◦ Eliminated duplication of effort ◦ Minimizes friction ◦ Maximizes cooperation Delegation of authority through ‘specialization’ Supervision becomes tough To achieve Coordination or Balance ◦ Avoiding technical nomenclatures ◦ Small, freely communicating groups
Sales Organization Concepts
Specialization
The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization.
Centralization
The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels.
Sales Force Specialization Continuum
Generalists
All selling activities and all products to all customers
Some specialization of selling activities, products, and/or customers
Specialists
Certain selling activities for certain products for certain customers
Purpose of Sales Organization
To define Authority
◦ Types of Authority
Line Authority carries power to require execution of orders by lower staff Staff Authority gives power to suggest Functional Authority enables specialists to enforce directives in a specific & limited field
◦ For smooth operations
Coordination Free flowing communication system
Line & Staff Authority