Organizational

design
 Organization Design
It refers to the formal in coordination task of assign territories &
establishing flows of communication & responsibilities of sales
group & individual to serve customer effectively.

It helps in-
1. Enhancing productivity
2. Reducing conflict
3. Improve an individual quality of work
 LINE ORGANIZATION
Oldest & simplest structure.
Widely used in smaller firms or firms with small numbers of
selling personnel's, limited geographical area or narrow product
line.
Chain of command run from top to down.
All executives exercise line authority & each sales person is
responsible to next in the hierarchy.
No cross communication between persons at same level.
Greatest use in companies where all sales persons report directly
to the chief sales executives.
 LINE ORGANIZATION
General
Manager

Sales Manager

Assistant Sales Assistant Sales Assistant Sales Assistant Sales

Manager Div. 1 Manager Div. 2 Manager Div. 3 Manager Office

Salespeople Salespeople Salespeople Office Staff

 LINE ORGANIZATION
Advantages:
Problems of discipline & control are small.
Authority & responsibility are clear.
Saves time in making policy changes.
Development of close relationship between superior & subordinate.
Administrative expenses are low.

Disadvantages:

Too much dependence on department head.

Overloading.
Insufficient time for policy making & planning.
Inappropriate for rapidly growing firms.
Offers little opportunity to subordinates to acquire management skills.
Example LINE ORGANIZATION
LINE & STAFF SALES ORGANIZATION
Improvement over line and functional organisation.

It ensure a proper balance between the line and functional organisation.

Line is usually assisted by staff in effectively solving various business

problems.

Staff is of usually three types:

1. personal staff
2. Specialised staff
3. General staff
LINE & STAFF SALES ORGANIZATION
President

Vp marketing

Advertising Manager market research

Manager Gm sales

Director Sales personnel Assistant Assistant Sales

Training Director Gm sales To Promotion
Gm sales Manager

District sales manager

Branch sales manager

Sales personnel
LINE & STAFF SALES ORGANIZATION
ADVANTAGES:
Specialisation: This organisation is based on planned specialisation and
brings about the experts knowledge for the benefit if management.
Better decision.
Lesser burden on line officers.

DISADVANTAGES:
Conflict between line and staff authorities.
Problems of line and staff authorities.
Lack of responsibility.
More reliance on staff.
EXAMPLE LINE & STAFF SALES
ORGANIZATION
FUNCTIONAL SALES ORGANIZATION

Each individual in an organization should have few distinctive duties as

possible.

Principle of specialization is utilized to its fullest extent.

Sales people receive instructions from several executive but at different

aspects of their work.
FUNCTIONAL SALES ORGANIZATION

Director
of
Sales
Administration

Installation Manager Manager Manager of Manager

Manager of
and of of Dealer and of
Sales
Service Sales Sales Distribution Sales
Supervision
Manager Training Promotion Networks Personnel

Salesperson Salesperson Salesperson Salesperson Salesperson Salesperson

FUNCTIONAL SALES ORGANIZATION
Advantages :
Improved performance
Limited duties
Scope for expansion
Flexibility

Disadvantages :
Not feasible for small & medium sized firms
Suitable for large firms with stable operations & with opportunity for
considerable division of labour.
Conflict in authorities
Difficulty in pinpointing responsibility
Lack of co-ordination
EXAMPEL FUNCTIONAL SALES
ORGANIZATION
Geographic Organizational
Structure
This is also known as territorial sales force structure and it means that
the organization assigns each sales rep to a certain geographic area.
Geographic Organizational Structure

National Sales Manager

Sales Training Manager

Eastern Region Sales Manager Western Region Sales Manager

Zone Sales Managers (4) Zone Sales Managers (4)

District Sales Managers (20) District Sales Managers (20)

Salespeople (100) Salespeople (100)

Geographic Organizational
Structure
ADVANTAGES:
Low geographic duplication of effort.
Low duplication of effort with customers (unless buyers are
organizations that cross territories).
Low cost

DISADVANTAGES:
Sales reps have a hard time developing product or market
specialization (unless the organization commits to specialized sales
forces allocated by geography)
Territory sizing can be a challenge, resulting in uneven
revenue/opportunity across geographies.
Product Sales Force Structure
National Sales Manager

Office Equipment Sales Manager Office Supplies Sales Manager

District Sales Managers (10) District Sales Managers (10)

Salespeople (100) Salespeople (100)

Product Sales Force Structure
ADVANTAGES:
Sales reps develop product expertise.
Management can guide selling efforts.

DISADVANTAGES:
Higher costs due to duplication of effort within geographies and
customer accounts.
Coordination required when more sales reps have the same
geography/accounts.
Market Based Structure
National Sales Manager

Commercial Accounts Government Accounts

Sales Manager Sales Manager

Sales Training Manager

Zone Sales Managers (4) District Sales Managers (5)

District Sales Managers (25) Salespeople (50)

Salespeople (150)
Market Based Structure
This is also known as customer sales force structure and means that
sales reps are grouped by customer or industry.

Advantages:
Sales reps know the needs of their customers and build stronger
relationships with them.
Management control can be strategically allocated to different markets.

Disadvantages:
Higher costs.
Geographic duplication.