Modern Trends in Sales Management

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					           Organizing
• The process of arranging people and
  other resources to accomplish tasks in
  service of a common purpose...to
  Facilitate the Plan.
• When well done, organizing should
  clarify who is supposed to do what,
  identify who is in charge of whom and
  establish official channels for
  communication.
                                           1
    An “Organization”
• A collection of people in a division of
  labor working together to achieve a
  common purpose.

  Organization Structure
• The system or network of tasks,
  reporting relationships, and
  communication that links together the
  work of individuals and groups.
                                            2
    Organization Charts
• A diagram describing the basic
  arrangement of work positions within an
  organization.

• It also provides a representation of the
      organization's Formal Structure.


                                             3
    What Does An Organization
         Chart Tell Us?
•   The Division of Work
•   The Type of Work Performed
•   Supervisor - Subordinate Relationships
•   Formal Communication Channels
•   Major Subunits
•   Levels of Management

                                             4
      Informal Structures
• The set of unofficial relationships among
  organization members.
              Potential Benefits
• Helps people accomplish their work, and
  overcome limits of the formal structure.
• Allows people to better communicate, and
  extend support and protection to one another,
  and
• It satisfies people's needs for social interaction.
                                                        5
     Informal Structures

• The down-side is that it is susceptible to
  rumor, breeds resistance to change, and
  can be distractive.




                                               6
              Synergy
• The creation of a whole that is greater
  than the sum of its individual parts.

          Coordination
• The synchronization of the separate and
  specialized activities of the many people
  necessary to achieve Synergy

                                              7
  Traditional Organization
         Structures
• Any organization is a network of
  interconnecting groups, and
• Managers serve as linking pins along the
  Vertical and Horizontal dimensions of
  the organization.


                                             8
    Departmentalization
• The process of grouping together people
  and jobs into work units and arranging
  these units in vertical and horizontal
  linkages to create a well-functioning
  whole.




                                            9
  Functional Structures
• Grouping together people with similar
  skills who perform similar tasks.
• They work well for smaller and less
  complex organizations dealing with
  only one or a few products or services.
• They also work best in relatively stable
  environments that allow organizations
  to pursue relatively stable strategies.
                                             10
  Functional Structures
• Economies of scale with efficient use of
  resources.
• Task assignments consistent with
  expertise and training.
• High-quality technical problem solving.
• In-depth training and skill development
  within functions.
• Clear career paths within functions.
                                             11
  Functional Structures
• Potential Disadvantages:
  – Functional Chimneys Problem
     • A lack of communication and coordination
       across functions.
     • Slow decision making and problem solving.
     • Loss of clear responsibility for cost
       containment, product or service quality and
       timeliness, and innovation in response to
       environmental changes.

                                                     12
Functional Structures
           Business Firm
                President




VP      VP        VP        VP    VP
Mkt   Finance    Prod.      HR   R&D



                                       13
Divisional Structures
• Grouping together people with diverse
  skills and tasks, but who work on the
  same product, with similar customers or
  clients, or in the same geographical
  region.
• Useful in complex situations where
      organizations are pursuing diversified
      strategies, or
                                           14
Divisional Structures
• To meet pressures for innovation and
     change in dynamic environments.
      Types of Divisional Structures
                 Product
               Geographic
                Customer
                 Process
                                         15
Divisional Structures
         Various Divisional Structures
                     President

                                 Tube    Night
 Drugs      Europe      Govt
                                 Plant   Shift




                                                 16
      Hybrid Structures
• Divisional and Functional structures used
  in different parts of the same
  organization.

• Allows different needs to be served
     simultaneously.

• Common in most large organizations.
                                          17
    Matrix Structures
• Uses the permanent cross-functional
  teams to blend the technical strengths of
  functional structures with the integrating
  potential of divisional structures.
• Often found in organizations pursuing
     growth strategies in dynamic and
  complex environments.

                                           18
  Matrix          General
                  Manager
Structures

  Mgr       Mfg             Engr   Sales
 Projects   Mgr             Mgr    Mgr

  Proj
  Mgr

  Proj
  Mgr
                                           19
       Potential Strengths of
        Matrix Structures
•   More Interfunctional Cooperation
•   Flexibility
•   Customer Service
•   Better Accountability
•   Improved Decision Making
•   Improved Strategic Management

                                       20
   Disadvantages of Matrix
         Structures
• Power Struggles - "Two Boss" System

• Groupitis - Teams become too focused on
  themselves.

• Increased Costs - Extra salaries for
     program managers.
                                         21
Developments In Structures

• Team Structures
 The use of permanent and temporary
 cross-functional teams to improve lateral
 relations and solve problems throughout
 the organization.



                                         22
Developments In Structures

• Network Structures
 Consists of a central core working with
 networks of outside suppliers of essential
 business services. Alliances
    Designer
                   Core          Finance


       Off-shore          Importer
                                           23
 Organizing Trends In The
    Modern Workplace
• Organizations depend on the success of
  two separate but complementary forces:
 Differentiation
    The creation of differences through a
    division of labor.
 Integration
    The coordination of results so that
    some common purpose is achieved.
                                            24
 Organizing Trends In The
    Modern Workplace
• Shorter Chains of Command
 The line of authority that links all persons with
 successively higher levels of management.

 Scalar Principle
 “There should be a clear and unbroken chain of
 command linking every person in the
 organization with successively higher levels of
 authority up to and including the top manager."
                                                 25
 Organizing Trends In The
    Modern Workplace
• Less Unity of Command
 Each person in an organization should report to
 one and only one supervisor.
 The objective of this classical management
 principle is to ensure that subordinates do not
 receive work directions from more than one
 source.
 Cross-functional teams, task forces, and matrix
 structures are seriously challenging this principle.
                                                   26
 Organizing Trends In The
    Modern Workplace
• Wider Spans of Control
 Increased numbers of people reporting directly
 to a manager.

 A narrow span of control will result in
 more levels of management than a wide
 span of control. Wide Spans = Flat
 Organizations - Narrow Spans = Tall
 Organizations
                                              27
 Organizing Trends In The
    Modern Workplace
• More Delegation and Empowerment
 Delegation is the process of distributing and
 entrusting work to other persons.
 The three steps in delegation are:
    The manager assigns responsibility
    The manager grants authority to act
    The manager creates accountability
 They are the foundation of vertical coordination
 through delegation.
                                                 28
       Responsibility
The obligation to perform that results when a
subordinate accepts an assigned task.

            Authority
The right to assign tasks and direct the
activities of other persons.

          Accountability
The requirement for a subordinate to show
results of assigned duties to a supervisor.
                                                29
Authority should equal
responsibility when work is
delegated from supervisor to
subordinate.
A manager can and should
delegate responsibility but that
same manager cannot delegate
accountability.
                                   30
    EMPOWERMENT

Is giving others the authority
to act and make decisions on
their own.




                             31
        Decentralization with
           Centralization
• Centralization is the concentration of
      authority for most decisions at the top level
  of an organization.
• Decentralization is the dispersion of the
      authority to make decisions throughout all
      levels of the organization.
  While empowerment is contributing to more
     decentralization in organizations, advances
     in information technology simultaneously
     allow for the retention of centralized control.
                                                   32

				
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