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Listen to the Customer & act on what they tell youPat Nathan,
Vice President
Dell Computer
Contents
What is an Organization
An Organization is simply an arrangement-a working
structure-of activities involving a group of people.
The goal is to arrange these activities so that the people
involved can act better together than they can
individually.
Organization is the basic management function of
arranging the firms work activities.
Organization is often viewed as merely the determination
of a structure.
Organization is a continuing task requiring constant
management attention
An Organizational structure is like an human skelton
structure
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relationships
Vertical communication
Horizontal communication
Centralized top-down
Decentralized participative
Decision Making
decision making
Vertical integration
Outsourcing & virtual organizations
Work/quality teams
Autonomous work teams
Functional work teams
Cross-functional work teams
Minimal training
Extensive training
Specialized job design
Value-chain team-focused job design
focused on individual
1.
2.
3.
4.
5.
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New England
district sales
manager
Southern
district sales
manager
Middle Atlantic
district sales
manager
Southwest
district sales
manager
Midwest
district sales
manager
International
sales
manager
Pacific
district sales
manager
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12
Regional sales
manager A
Regional sales
manager B
Regional sales
manager C
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Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Sales
Analysis
Manager
Salespeople
Line authority
Staff advisory authority
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Functional company
organization
President
Finance
and
accounting
Production
Personnel
Sales and
marketing
Geographic specialization
According to geographic specialization
field sales force is given the
responsibility for direct selling activities
in a given geographical area or territory.
The sales representative is responsible
for selling the firms full line of products.
Territories are treated as separate profit
centers for purposes of analysis and for
the evaluation of sales force.
20
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Western Regional
Sales Manager
Eastern Regional
Sales Manager
4 District
Sales Managers
4 District
Sales Managers
Salespeople each
with own territory
Salespeople each
with own territory
Sales
Analyst
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Customer Specialization
Sales forces may be organized in terms of
customers for various reasons, a concept
referred to as customer specialization. The
firms customers may require a specialized
knowledge of their industry.
According to proponents of customer
specialization, organizing around
customers is necessary if the sales force is
to focus on customers needs and build the
best possible relationships with clients.
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Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Customer
Relations
Manager
Sales Manager
Transportation
Industry
Sales Manager
Steel Industry
Sales Manager
Petroleum Industry
Salespeople
Salespeople
Salespeople
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Product Specialization
Product specialization allows salespeople and
sales Managers to concentrate their efforts on
particular lines, brands or individual items
In most cases product sales specialists are
used when a products complexity limits other
options. Although clients reap the advantage
of the specialized knowledge provided by
each salesperson, they may resent the extra
time they must be spend dealing with two
vendor representatives.
Another disadvantage is the expensive
duplication of sales effort.
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Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Sales Manager
Product A
Sales Manager
Product B
Sales Manager
Product C
Salespeople
Product A
Salespeople
Product B
Salespeople
Product C
Customer
Relations
Manager
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Combination Organizations
Traditional approaches to sales organization
have not been effective in the rapidly changing,
high growth in which these firms compete. As a
result many high-tech companies are attempting
to develop new organizational strategies.
These new combination organizations can be
characterized by the following traits.
Market, Product and Function
Decentralized staff and line personnel
Complex staff-line relationships
Overlaid organizational mechanisms
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Combination Organizations
Organizational Structure Employing All Three Approaches to Organizing Sales
Forces: Organization by Product, Geography, and Customer.
President
General sales
manager--shears
Eastern
district
Central
district
Machine
tool
Machine
tool
Fabricated
products
Fabricated
products
General sales
manager--fasteners
Western
district
Eastern
district
Central
district
Western
district
Machine
tool
Machine
tool
Machine
tool
Machine
tool
Fabricated
products
Fabricated
products
Fabricated
products
Fabricated
products
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Pharmaceutical Companies-Sales
Organization Structure
President/Vice
President
(Sales)
General
Manager
Regional Sales
Manager
Area Manager
Medical
Representative
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