Chaper 4 sales management checked

SALES MANAGEMENT
THE SYSTEM OF SALES
CHAPTER IV
WRITTEN BY:
SYED AQEEL RAZA
MASTER OF COMMERCE & ARTS

CHAPTER IV
MANAGEMENT 4.1
DEFINITION OF MANAGEMENT 4.2
SALES MANAGEMENT 4.3
PRINCIPLE OF MANAGEMENT 4.4
o Division of work1 4.5
o Authority and responsibility2 4.6
o Discipline3 4.7
o Unity of command4 4.7
o Unity of direction5 4.8
o Sub-ordination of individual interest to mutual interest6 4.8
o Fair remuneration7 4.9
o Centralization8 4.10
o Scalar chain9 4.11
o Order10 4.11
o Equality11 4.12
o Stability of tenure12 4.12
o Initiative 4.13
o Team spirit 4.13
FIVE SOCIAL PRINCIPLES FOR MANAGEMENT 4.14
o Appreciation 4.15
o Common Progress 4.16
o Impersonal thinking 4.17
o The attitude of managers 4.18
o Satisfaction 4.19
THE FUNCTION OF MANAGEMENT 4.20
THE FUNCTION OF MANAGERS 4.21
THE FUNCTION OF MANAGEMENT 4.22
THE CLASSIFICATION OF FUNCTION 4.23
o Planning 4.24
o Organizing 4.25
o Staffing 4.26
o Directing 4.27
o Controlling 4.28
o Coordination 4.29

SALES MANAGEMENT
o Sales Planning 4.30
o Sales Plan 4.31-32
o Sales Objectives 4.33-36
ESSENTIALS FOR SALES PLANNING 4.37-39
o Supply and demand
o Sales Target
o Sales Budget
o Sales decisions
o Sales program
o Sales policies
o Sales rules
o Sales forecasting
ORGANIZATION 4.40-41
o Formal Organization
o Informal Organization
SALES ORGANIZING 4.42-43
- Nature and purpose of organizing 4.44
o Assignment of activities 4.45
o Departmentation 4.45-47
SALES REQUIREMENT 4.48
o Sales staffing 4.49-51
o Sales planning 4.52
o Sales direction 4.52
o Decision making 4.53
o The ability to take work 4.54
o Social problems 4.54-55
o Motivation 4.56
o The opportunity for progress 4.56
o Reward 4.56
o Prestige 4.56

SELECTION OF SALES TEAM 4.57
o Directing 4.58
o Planning 4.59
o Organizing 4.59
o Staffing 4.59
PRINCIPLE OF DIRECTING 4.60-63
o Objective
o Unity of command
o Communication
o Leadership
o Motivation
CONTROLLING 4.64-65
o Importance of controlling
o Principle of controlling
o Method of controlling
o Devices of controlling
WRITER’S VIEW 4.66

MANAGEMENT
In order to perform any work in the best possible
manner, the management is needed based on
planning, organizing, staffing, directing and
controlling and which can be consisted on one
person in the small organization and more than one
in the large organization and those persons are
performing called managers of their areas given to
them.
The manager controls the mind of workmen through management.

DEFINITION OF MANAGEMENT:
The art of taking work with human’s nature is management and in this
connection, we can say;
- That the management concerns with a party, not with one person.
- That the objective is an essential element of management.
- That the management has a close connection with party’s objectives.
- The management is responsible for getting the decision and prominent objectives.
- The success of management is to get the desired result successfully.
- The secret to the success of a manager is to take works with others under particular
objectives.
- Management is a function or entity.
- The management is a social way of getting the desired result through planning,
organizing, staffing, controlling and directing.
In the nutshell, the management does plan, to organize, to hire staff, to direct and
to control human activities and to initiate an enterprise, to provide finance, to
make policies, to select staff and to provide materials are also the responsibilities
of the management. Hence, the management involves in all physically and
mentally.
The art of taking work with human’s nature is management.

SALES MANAGEMENT:
The sales have two branches as to distribution and
marketing or promotion which support each other in the
process of selling. There is no concept of business
without selling as the business needs profit and the profit
is not possible without applying techniques. The
observation and experience create techniques and the
techniques are changeable according to the situation and
handling of these situations under management.
The management shows the way to sale as we can say
that it works just like showing torch in the dark.
The sales require management on every step.

PRINCIPLES OF MANAGEMENT:
According to Henri Fayol in his book General and Industrial Management (1916), there are
fourteen general principles for management which provide necessary base to managerial skill
and are as useful in today’s practical world as in his time and the fourteen principles that Fayol
concentrated on were;
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
● Divisionof Work
● Authority &Responsibility
● Discipline
● Unity of Command
● Unity of Direction
● Subordinationof individual interests tothe general interest
● Fair Remuneration
● Centralization
● Scalar chain
● Order
● Equity
● Stability of tenure
● Intuition
● Team Spirit

- DIVISION OF WORK 1
Fayol directed to use this principle in any kind of work either administrative or
technical so that every work could perform more and more with proficiency and
according to this principle the whole work is divided into small tasks to workmen
according to their ability and skill.
The division of work is to divide an organization into departments as individual
entities where a departmental head or manager is assigned to control activities
and submit his reports to his Chief and/or divide working to workmen division
wise according to their knowledge and experience.
A man can be expert in one field but not in all and suppose that if he is expert in
all field will not be able to work in all fields requires assistance certainly then the
division of work increase the proficiency of a man in one particular field which will
give quality to work and the quality of business.
Our here generally in a small organization, this principle of Fayol is being
exploited. A man is used to take work all kind of nature like the jack of all trades
by which the ability of the workman and the quality of work is decreasing.
Every person must be given work according to his ability and experience.
The division of work is like cities in a country.

AUTHORITY AND RESPONSIBILITY 2
Authoritymeansthe rightof a superiortogive enhancesordertohissubordinates;responsibility means
an obligation for performance and both are joined with each other who will have authority will be
responsible definitely for the works which are assigned to him and it requires subordinate and/or
subordinates to complete the assignment.
The authority and responsibility bind managers to take work with their subordinates in order to
complete the taskor to keepworkfree fromerrorsandfor whichhe has to organize hisstaff,toplanthe
workhow to take,togive directionandtocontrol expenditure,qualityof work,smoothworking, etc. in
their areas.
Then we can say that authority and responsibility are the tools in management which one side gives
more or less owner’s right to managers and on another side bind them to keep work according to the
target given.
But in our today’s society or in a one-man show, the authority goes to owner and responsibility to
managers wherein they have to work on his direction and have no right to decide, to plan, and to hire
staff but onhis consent.If itisseenthat the managerswhowere hiredhavingqualifiedforthe work and
have also experience and qualification in the field but they cannot work according to their abilities in
bindings and because of having no authority, they have to work like subordinate as they have their
assistantsforcompletingthe taskandthenwe can say inthiscase all are subordinate exceptone inone-
man show.
In thiscase,the ownercomesundercloudsinsolving small and small problems which would be solved
by the managers for which they assigned resulting in making the cause of not increasing business
volume.
If the managerswill applytheirskillsintheir areas according to their mental abilities, the business will
move forward and the owner will come in peace.
This is an important and useful principle of management and cannot be given to employees and
sometimesthe relationshipbetweenmanagementandemployeesisbadlyaffectedbynon-delegationof
proper authority.
The authority is the mother of responsibility.

DISCIPLINE 3
Discipline means obedience, proper conductin relation to others, respect for
authority, etc. and it is an essential element for the smooth functioning of all
organizations.
The discipline is the name of a system of rules for behaviour.
UNITYOF COMMAND 4
Unity of command binds subordinates to receive orders and be accountable to
one and only one superior. If an employee receives orders frommorethan one
superior, it is likely to create confusion and conflict.
The unity of command is concerned with taking orders from one head.

UNITY OF DIRECTION 5
The unity of direction states one head one plan means that all employees have
the same objective must be directed towards the achievement of the common
goal and thus must have one head and one plan.
All activities should be put under one group, there should be one plan of action
for them, and they should be under the control of one manager.
The unity of direction is concerned with the direction of the efforts of the
employee of one division towards the achievement of the objectives of that
division.
The unity in direction retards the way of mismanagement.
SUBORDINATION OF INDIVIDUAL INTEREST TO MUTUAL INTEREST 6
The interests of goals of the organization must prevail over the personal interests
of individuals. Any individual’s interest that conflicts with an organizational
interest must be subordinated to the interests of the organization. The
organization must find ways to reconcile the tension between individual and
organizational interests. Therefore, the management must put aside personal
consideration and put company objectives firstly.
The common interest is the way of success.

FAIR REMUNERATION7
The way of paying wages or remuneration should be fair,
reasonableand rewarding of effort as this is the chief
motivationof employees and therefore greatly influences
productivityand because of this workmen get satisfaction more
and more and like this owner generates profit more and more
and business grows.
Money is the thing which man gives after heavy thinking and
wages is the name of money paid against work decided or
undecidedbecause of this government has made the rule for
minimum wages to workmen but besides this, the matter of
wages is made issue among businessmen.
The way of growing is to take something for something.

Centralization 8
Centralization means that ruling power should be with one man at the top level of
management or central organization that has supremeleadership. In other words,
in centralization, management retains most of the decisionmaking authority and
in decentralization; decision making is distributed among all levels of the
organization.
The coordination of managers and officers with the center is necessary for getting
desired objectives and far away from Centre is not in favour of any business.
In our time it is seeing that the centralization is misleading because of its own and
increasing distance with workmen because of misbehaviour, creating problems,
making the horrifying atmosphere, unnecessary questions and even morethis and
because of which the desired results could not be obtained properly.
The best way of carrying near to staff is to appreciate them in their works, to
ignore mistakes of small nature and to educate them on works that could not
become the cause of heartbreaking.
Everything has a Centre but management is the center itself.

Scalar chain 9
Fayol defines the scalar chain as the chain of supervisors ranging from
the ultimate authority to the lowest rank. An employee should feel free
to contact his supervisor about anything through the scalar chain.
The chain of superiors from upper to lower level comes under the scalar chain.
Order 10
No work can be done in time and in better ways without order. In fact,
it educates work and workers in any organization.
Social order ensures the fluid operation of a company through the
authoritative procedure. Material order ensures safety and efficiency in
the workplace. The order should be acceptable and under the rules of
the company.
The order makes work in action.

Equality 11
The manager shoulddo justice and equalityin taking work with
his subordinatesso that the work of his organizationcould be
with satisfactory and for this, the manager should be fair and
impartialwhen dealingwith employees, giving equal attention
towards all employees.
Equality is near to justice.
Stability of tenure 12
The workers must have the satisfaction that they have kept for
which period could work peacefully. The stability of tenure
increases the capabilityof workers and the stability of an
organization.
The stability of tenure is the stability of the business.

Initiative 13
Fayol says that the manager should give the chance of working
to his subordinatesby themselves which in sometimes they
solve problems of unsolved matters.
The initiativecan add strength and generates new ideasfor an
organizationand on the part of employees is a source of
strength for the organizationbecause it provides new and
better ideas.
The intuition is the gift from God.
Team Spirit 14
This refers to the need for managers to ensure and develop
morale in the workplace; individuallyand communally.Team
spirit helpsdevelop an atmosphere of mutual trust and
understandingwhich helpsto finish the task in time.
The spirit of a group that makes the members wants the group to succeed.

FIVE SOCIAL PRINCIPLES FOR MANAGEMEN
There may be five social principles in any type of
management need to be considered in the process of
getting desired objectives which I want to make the part
of this book based on my study and experience;
- Appreciation
- Common progress
- Impersonal thinking
- Attitude of manager
- Satisfaction

APPRECIATION
In the process of getting desired objectives, the manpower is
required which is the single source of getting desired objectives
and it is true that all principles and functions of management are
enforceable because of manpower.
Human’s nature requires appreciation, salutation, value, words of
thanks and any good talk. The appreciation can also be orally
wordily and to upgrade, to give value, to give appreciative
credentials, to give a reward, to appreciate before others are the
vital tools of appreciation and in contra, if the work of any worker
is overviewed, the destination will be obtained not on time and
loss in gain.
Sometimes, much appreciation weakens the control system
because the person appreciated extraordinarily considers himself
like an owner and does not care about rules and regulations.
Hence, the appreciation must be in work not in person.
The Appreciation is the vital tool for reaching the goal.

.
COMMON PROGRESS:
A man who does business and invests capital in the business in anticipation
of getting profit says I shall progress. Is his saying, right?
His saying that I shall progress is not right because of the reason that his
money is invested surely in business but he can do nothing in business
along and the manpower should be required to move business activities so
the manpower and his investment are common in the progress of the
business.
The employees are the source of getting desired objectives following
principles and functions of management.
Therefore, he must say “we shall progress” not in saying but in common in
progress and the objectives of progress are gain and gain must be in
common.
This tool creates enthusiasm in workmen and they work for the
organization as their own. The objectives of the organization will be their
objectives because of common progress.
The slogan “common progress” is the guarantee of success in business.

IMPERSONAL THINKING
Every kind of peoples work in business they belong to the
different tongue, religion and nationality kept under the
theory of need for obtaining objectives of an organization and
besides this in need, manpower is hired from abroad.
The theory of need creates impersonal thinking, makes policies
above nationality and religion and says all are equal for
obtaining the objectives of the organization.
The business moves with principles and if principles are made
for the different community on the basis of tongue, relative,
religion, etc. the system of management will have no meaning.
The personal thinking in business is poison killing.

ATTITUDEOF MANAGER
The employee is just like a business partner in obtaining the desired
objectives of an organization. The services of the employee and finance of
the investor both when meet then become the cause of gain and gain is the
desired objective of the investor for which all principles and functions of
management work.
Sometimes the attitude of managers with their subordinates is of
humiliation nature even then calling bad names, stand hand, take work
forcibly, threaten to terminate, take extra hours work without payment,
humiliate before juniors and many other causes to do it.
If the worker is humiliated, he will take no interest in the work and will
search other opportunities and because of this, the destination will be of
far talk. Hence, the humiliation of employees will create mismanagement.
For making the desired destination fruitful, the good environment and the
good personnel are required in business.
The bad attitude of manager is the fierce enemy of business.

SATISFACTION
The satisfaction of employee and employer in getting desired objectives is
an essential part of management. The principal wants to get satisfaction in
his objectives which end result of gain obtained passing through functions
and principles of management. During the process of getting desired
objectives, the principal has to face many problems in the matters of
social and financial and up and down in business become the cause of his
dissatisfaction. Like this, the subordinates work for money which satisfies
the need of their own and for work they have to walk on the principles
which are made by the management.
The satisfaction of principal based on gain and subordinates on
emoluments then the subordinates should work and walk according to
principle system in achieving the desired result.
The principal should include subordinates in the progress which ends to
gain. The satisfaction does not end to gain but requires mental relaxation to
subordinates in working environment, in medical, in superannuation, in
leaves, in up-gradation and work according to ability.
Under this principle, the problems of an employee will be the problem of
the employee and the objectives of the employer will be the objective of
the employee.
The satisfactionof employee andemployerare the part of good management

THE FUNCTION OF MANAGEMENT
In management, the five elements such as planning, organizing, staffing,
directing and controlling are in function every time and are considered the
base of management.
The functions of management make principles which enable functions to
achieve the goal.
Management is an unforeseen force to increase efficiency.

THE FUNCTIONS OF THE MANAGER
The responsibilities of manager differ with the nature and span of organizations. If the
organization is very large then the separate manager will be for every unit or
department and like this in an organization, there can be one or more managers such as
manager production belongs to the production, manager sale belongs to the sale and
like this manager factory looks after other managerial works. In a small and medium
organization, these functions are performed by only one manager.
- The first and foremost responsibility of a manager will be that he creates the
environment in the organization by which the desired objectives are obtained.
- The manager is responsible for making a good environment for workers in the
organization or creates such environment for good work.
- The manager does planning for his working subordinates.
- The manager selects suitable staff for the nature of work.
- The manager educates for work and then directs to his subordinates.
- The manager keeps on eye on results of the work because all works are performed
for results.
Universally, the function of managers is equal either they are in any organization or in a
peculiar place in the organization. Their particular responsibility is that they prove
themselves a ruler that their subordinates work with unity and establish coordination with
other units.
The peaceful functioning of an enterprise should be the objective of a manager.

THE FUNCTION MANAGEMENT
The principals or higher management work for the functions of
management; planning, organizing, staffing, directing and
controlling; and deliver to managers for getting desired results,
managers following the functions of management and work on
principles.
The function of the management; planning, organizing, staff,
directing and controlling are also applied to any type of
manager in his area of work. The task which has been given to
the manager for instance who is responsible for the sale, he will
do plan, to organize, hire staff, to direct and control the
activities relating to his field under higher management.
The function of management is just like a cycle which has no end.

THE CLASSIFICATION OF FUNCTIONS
It is essential to classify the responsibilities of manager that the
nature of work must be understood for instance sale,
industrialization, accountancy, engineering and purchasing
which have different nature from one enterprise to other
enterprise but principles for working with them are same.
For planning of responsibilities, it is an easy way that they must
be taken within the limits of planning, organizing, staffing and
controlling.
The classification of functions explains the nature of work.

PLANNING
The planningselects objective firstly and this objective is
obtainedby the policy, procedures and the way of working of
an organization.Actually,the meaning of planningis to select
one object among many possible objectives means one object
is determined by planning.In fact, the planningand the
responsibilityof making it cannot be separated by principals
because it is necessary for principalsto make planningeither
belong to the top place of an organizationor in a small unit but
planningare very necessary on every step.
The planning works in every place of work.

ORGANIZING
The action or the discipline of work is called organizing so that
the desired objectives of an organization could be obtained.
However, the organization is the summary of attaching with all
works and authorities.
The organizing cannot be in a private company because the
owner pays the responsibility of manager himself and he does
not deliver the authority to other. Hence, there must be two
principals who do work in a place or under each other.
The organizing is the source of reaching the desired goal.

STAFFING
Actually, the meaning of staffing is to provide workers
and kept suitable staff in the enterprise. The nature of
staff depends on the nature of work and suitable person
or staff is selected according to work. In staffing, suitable
education and training are essential so that they
complete their work with full efficiency. The watching of
staff, their upgrading, remuneration, etc., come
understaffing and like this, it is a very necessary duty of
manager.
The staffing in management is like a soul in the body.

DIRECTING
Direction tells work to a subordinate, keeps on eye their
work and issue an order to them. A good manager, by his
directions, explains the policies, objectives, and nature of
his enterprise to his subordinate.
It is the continuing duty of a manager to inform his
subordinates relating to their work and provides
guidelines to them so that the methods of their work
could be better.
The direction is the source of training.

CONTROLLING
The control creates such opportunities that are according to
planning. Hence, the works are scaled, the mistakes are
improved and the work is completed according to planning.The
control creates the ability to do decided work.
The control on all works is the result of workers in control.

COORDINATION
Most of the writers are in the opinion that the coordination is the separate duty
or function of a manager but it is seen that the coordination is the part of
management which includes five functions of management and because of the
reason that every function of management exercises of coordination.
The coordination explains the procedure of getting decided objectives and joints
departments with each other. The coordination is established at the time of
planning and policy making.
It is the particular responsibility of a manager that he establishes coordination.
His most first responsibility is that he establishes an environment in the
organization that the coordination can be possible to;
- establish reasonable system structure
- select skilled subordinates and educate
- keep in control subordinate work effectively
- make out subordinates the necessary timing and work schedules
- provide such sources by which the subordinates can perform decided
work
- make out subordinates the principles and the importance of co-
ordination
The coordination is the essence of manager-ship.

SALES MANAGEMENT
SALES PLANNING:
The planning plays a basic role in sales management and the
balance of supply and demand are not possible without
planning.The sales planning gives strategies to achieve the goal
or objective and outlines tasks and schedules to reach the goal.
The sales planning requires plan; the plans are made on paper
and the planning takes its way through the plan.
The plan is on paper and the planning is an action over it.

PLAN
Plan means procedure, scheme, strategy, idea, proposal, suggestion or a courseof
action aimed to achieve specific goal or objective within a specific time frame and
it explains the purpose, action, method and persons to work on the plan.
The plan has a specific aim or purpose which helps to get objectives of an
organization.
The plan specifies objectives, policies, procedures, rules, budget, and program.
SALES PLANS
The sales plans are made identifying the region whereto sell, the customers who
will purchasethe product, the team who will sell the product. Hence, we have
here; the region, the customer and the team;
THE REGION
The region is the area or any place where the productcan be sold or the
customers areavailable for the productwhich the company wants to sell. The
region does not require any place but identifies the place of sale. The village, city,
country and foreign country is a region wherethe productis selling and the
markets therein are the markets of that region.
When the plan is made, the sale is distributed region-wisepotentially or non-
potentially.
The region is a marketplace.

THE CUSTOMER
A customer is a person who needs goods or the customer who will purchase the
product. The customer is an important factor in sales management. The region
and the product will be meaningless withouta customer. The customers can be of
any type but depend on the product which they need and we can say that the
need makes a customer.
The plan separates the customers on demand and outlines the region where the
customers are available for the product.
The sales planning needs customers.
THE TEAM
The team means the persons who will sell the product. The team requires
experienced persons and the training of sale person beforethe sale is an essential
part of the team.
The plan sets team members region wiseupward to downward.
The sale is not the effort of anyone but the team.

SALES OBJECTIVES:
The purpose of sales planning is to get objective and the objective of sale is to
achieve sales target. The sales target goes to profit and this will be the objective
of the sales planning. The planning is the source of obtaining the destination and
the way of reaching the destination is to follow;
- MAXIMUM SALE WITH MINIUM EXPENSES
The sale needs efforts visibly and invisibly and the efforts require expenditures.
The expenditure reduces the profitability of the business. The minimum
expenditures become the cause of maximum profit. The expenditure is not the
question but the sale is the question because the sale has profit in it. Therefore,
maximum sale with minimum expenditure should be the aim of sales
management.
- INCREASING THE EFFICIENCY OF SALES TEAM
The sales needs team, the team is responsiblefor gain and loss. The gain is the
objective of sales planning but no loss. The planning applies strategies for
increasing the efficiency of the sales team. The planning takes work with
experience, the motivation of the sales team, training of sales team and many
other aspects which it understands necessary for increasing theefficiency of the
sales team.
An efficient sales team is an apple of the business eye.

- THE PREPARATION OF FIELD FORCE
As the war cannot fight without arms, techniques, and strategies, the sale cannot
be achieved without the preparation of field force. The field forceof sales is just
like an army who are going to fight in the war field of sale. The planning prepares
field forceby all means to fight sale war.
The planning teaches, trains and directs to field forceand enables them to take a
decision.
The field force is an army of sale.
- FIGHT WITH COMPETITORS
If the productis unique and made by single one, there will be no competitor. The
competitor is who they make and sells the same productwhich the other one.
The planning tells how to fight with competitors and gives ideas on pricing,
campaigning, modifying the product, advertising, and on changing situation.
The competitors are the enemies of sales.

- NEW CUSTOMERS AND MARKETS
A customer is a person who purchases the productand the market is the place
wherehe purchases theproduct. The sale needs new customers and markets for
increasing sale volume because the customers and markets are affected by
competitors.
The planning gives spaceto new customers and markets teaching the way and
methods of making new customers and markets.
The new customers and markets stable sale.

- WE PROGRESS DOES NOT I.
The first and most slogan of planning is to say that we progress do not I because
the sale is not the work of one but common in all. This slogan gives courageto the
worker of any kind and he will work as it is his work.
The planning motivates sales filed forcethrough sales incentives and rewards to
fight in the market with competitors and productwar.
The slogan of progress is “we progress don’t I.”
- PRODUCT WAR
The current period is of productwar. A productwhich is selling in the markethas
to face the competition with others products of the samematerial.
The planning tells how to win product war and provides fuel and arms to sell.
No product war is won without planning.

ESSENTIALS FORSALES PLANNING
- SUPPLY AND DEMAND
The hot topic of the Sales Management is of supply and demand because wecan
say that the sale revolves around supply and demand. The demand creates orders
for the sale and the sale supply orders to demand. The demand and supply are
two wheels of a motor.
The price up and down affects the demand and supply. If theprice will increase,
the demand will decreaseand if the price will decrease, the demand will increase
or as the demand for an item increases, the price will rise and the demand of that
item will decrease and the price will go down, the demand will increase.
The demand creates supplies.
- SALES TARGET:
The planning discusses on sales target because the target is the desired goal of
the Sales Management. The management gives a target to sale monthly, quarterly
or annually and on the target sale functions and moves the team to create
demand and to arrangesupply.
The price increase can affect the target unit-wisenot value-wise.
The sales target requires unit-wise not value-wise.

- SALES BUDGET:
The sales planning requires sales budget to achieve the goal. The budget helps
sales to fight with competitors in the market as well as to functions smoothly. The
expenses on the sale are the part of the sales budget.
The sale planning also requires sales budget estimates the sale of units as well as
the estimated earnings fromthese sales.
A sale budget is a plan for a business.
- SALES DECISION
The sales planning enables managers to take a decision in right way. The decision
has value in sales because the salesman is justlike a driver who is to reach safely
to his destination driving his vehicle and while driving he has to take many self-
decision on many occasions.
The sale planning teaches his driver how to take decision rightly. In its teaching
includes immediate sales decision which does near to the goal, sale, and
satisfaction of the customer which is the preference of decision.
The decision is an essential part of a sales manager.

SALES PROGRAM
The planning requires a program on which the sale walks. The program means to arrange
planning and walks according to it. The sales program is the part of a plan and the plan is made
under schedule.
Outlining objectives, planning execution, managing operations, and reporting on status are just
a few of the functions involved in carrying out a successful program.
SALES POLICIES
The sales policy is an essential part of sales management. Under the sales policy, the planning
decides discounts, customer categories, and local policy, foreign policy, and credit terms and
makes many more policies according to the situation.
SALES RULES:
The planning prescribes rules for conduct or action. The rules tell what it can do in detail. The
rules provide detailed guidance about how a strategy can be translated into action.
The rules in the sale have no meaning.
SALE FORECASTING
The forecasting is the process of making predictions of the future based on past and present
data and most commonly by analysis of trends.
The sale planning gives the way to sale for forecasting its budget, sale, decision, and target.
The fact is not the part of forecasting.

ORGANIZATION
An organization is the unit of people that engage to meet the goal of business. The business
needs relationships between the different activities and it assigns roles, responsibilities, and
authority to carry out different tasks under management system.
FORMAL ORGANIZATION
In this type of organization, the objective of an organization is determined and it refers to the
structure of jobs and positions with clearly defined functions, responsibilities and authorities.
Following are the main characteristics of the formal organization;
1. Organization structure stands on the division of labor which brings efficiency in
organizations’ operations.
2. Policies and Objectives of organizations are determined
3. Individual activities are limited
4. Organizations communicate messages through a straight chain of command
5. Arbitrary structure of the organization.

INFORMAL ORGANIZATION
The objective of an organization is undefined in informal
organization. In the informal organization, people work together
because of their personal likes and dislikes etc. For example,
Passenger traveling in an airplane or people wandering in streets
forms a sort of informal organization.
Following are the characteristics of the informal organization
1. Structure wise information organization is flexible and unplanned
2. There is no defined relationship
3. In an informal organization, there are two or more than two people
4. Informal organization involves the spontaneous relationship
5. In such organization, membership is on a volunteer basis
6. People have right to join more than one informal groups at the same
time

SALES ORGANIZING
The formal organization requires organizing their activities which are controlled
by the organizational members. In order to organize sales, the member from
senior to junior is responsible for the work assigned to them. The authorities and
responsibilities are sub-divided but the responsibility goes to the principle of the
organization because the responsibility and authority are given by him. Therefore,
the responsibility and authority begin and ends to the principal or principals come
under senior management.
The senior management delegates his authority or responsibility to his junior
management to accomplish the goal for the time being. The junior management
consists of managers according to their area sub-divide their responsibility or in
some cases authority to operating management. The operating management
works under the direction and is responsible for his senior. The operating
management organizes team management and gives responsibility for taking the
work in their area. The team management is responsible to answer for operating
management.
Therefore, four kinds of management have extracted from the above discussion;
- Senior management
- Junior management
- Operating management
- Team management
An organization is the unit of people.

Circle of management
The sale is organized under the umbrella of senior management who delegates
his authority and responsibility under circle for achieving the goal. The senior
management does not separatethem fromauthority and responsibility.
Senior
Management
Junior
Managment
Operating
Managmenet
Team
Management
GOAL

Nature and purpose of organizing
The nature of organizing depends on the natureof the business and its goal
involving many factors. For example, a hospital has organizational needs that
are different from those of a university, which are again different from those of
a manufacturing concern. Organizing is what managers do when they design,
structure, and arrange the components of an organization’s internal
environment to facilitate attainment of organizational goals.
An organization structure should be designed to clarify who is to do what
tasks and who is responsible for what results, to remove obstacles to
performance caused by confusion and uncertainty of assignment, and to
furnish decision-making and communication networks reflecting and
supporting enterprise objectives.
An organization may be defined as the rational coordination of the activities of
a number of people for the achievement of common objective or goal through
the division of labour and function, and through a hierarchy of authority and
responsibility.
The organization is a team that targets goal.

Assignmentof activities
An assignment is a task that someone is given to do, usually as the part of
their job. The assignment is the work of an area or project is given under a
contract to another wherein one party transfers his duties or liabilities to
another party.
An activity is a specific function of an organizational unit which requires a
personto do it. The business has differentactivities in it and these activities
are to be assigned to persons eligible to control them.
The assignment of activities is the art of management.
Departmentation
The formal organization requires departments for gaining efficiency and
coordination. The department refers to a group and the group is delegated
authority for the accomplishment of the tasks.
It refers to grouping the activities of an enterprise on the basis of
functions such as production, sales, purchase, finance, personnel, etc.
The actual number of departments in which an enterprise can be
divided depends upon the size of establishment and its nature. To
begin with, we may have three or fourmain departments. With the
growth in the size of the business,more departments and sub-
departments may be created.

The following are the basis of dividing responsibility within an organization structure:
- service department
ADVANTAGEOF DEPARTMENTATION
- Departments are made for better work.
- The quality is achieved.
- The production is increased.
- The expenses are reduced per head.
- The organization does progress in better ways.
DIS-ADVANTAGEOF DEPARTMENTATION
- The existence of department increases the expenses.
- Reduces coordination between functions.
- The planning and control affected.

SALES REQUIREMENT
The delegation of authority to sales staff is necessary for results becauseof many
reasons;
- It is important to delegate an entire task to a person or team,
which helps establish their responsibility for it.
- The essence of the delegationprocessis to empower staff to act for
you.
- The authority makes responsible for a person.
- While responsibility means an employee is obliged to carry out
assigned duties, accountability means that the individual has to
perform that assignment in a satisfactory manner.
When, you give your employees the responsibilityto perform tasks and the
authority to carry them out, they feelthe satisfaction of a job well done. Too
much responsibilitywithout the power to fulfill it will create stress and a
sense of frustration and purposelessness.A manager must find the correct
balance betweenresponsibility and authority to have a healthy, happy, and
productive staff.

SALES STAFFING:
Staffing pertains to recruitment, selection, development, and compensation of subordinates.
The staffing is a managerial function involves managing the organizational structure through
proper and effective selection, appraisal and development of the sales team.
NATURE OF STAFFING FUNCTION:
- The staffing is a managerial function like planning, organizing, directing and
controlling help to make an organizational structure.
- The management revolves around five managerial functions that are planning,
organizing, staffing, directing and controlling and the staff is the function that is
necessary for rest functions and without staffing, the four functions of the
management are like a castle in the air.
- The staffing is a continuous activity throughout the life of an organization due to the
transfers and promotions that take place.
- The staffing is managed by a system or proper procedures, that is, recruitment,
selection, placement, training, and development providing remuneration, etc.
- The staffing helps in placing right person at the right job through proper
recruitment procedures and then finally selecting the most suitable candidate as per
the job requirements.
- The selection of staff is the act of managers but depending upon the nature of the
business, size of the company. In small companies, the top management generally
performs this function. In medium and small concerns, it is performed especially by
the personnel department of the concern.

QUALIFICATION:
The qualification of a staff which is hiring for meeting the purpose depends on his
education and experience. The sale does not see the qualification and experience
of staff but sees the objective and because of the reason, who meets the
objective that is its man.
Above all, the staffing requires from his team to be most effective and smarter
than others and wants to have the following characteristics from his man;
- Working
The working means is to work of any kind physically for satisfying the need. The
need to remove appetite, the need to have a home, the need to get wearing
things, the need to get a luxurious life, etcetera requires working. The working
increases money with hardworking physically and mentally.
- Smart working
The smart working takes work with working of any kind mentally for satisfying the
need before need. The smart working reduces labour, money and hardworking
because it takes work with the mind. There is no time to suck low-level water by
dropping stones in the pot as the clever crow did the same. The crow had to work
hard for dropping the stone in the pot and if the crow brought the straw for
sucking water from the pot, he can immediately remove his thirst and had not to
do hardworking.

The example of horse and donkey is before us that horse does not bear a load,
eats well and comes for traveling. Although he bears the load, walks in the
direction and the source of earning to his master. Someone complains that they
work hard like a donkey but not awarded than others who work below than them.
The cause of it comes to mind that the donkey is back to the horse in wisdom and
faithfulness. Like this a man is wise, well literate and good with others becomes
horse as the horse is used to travel not for loading and liked for his faithfulness.
The conclusion of above is that the team of sales must be prepared for smart
working notfor working.
The smart working requires planning, education, experience, training and above
all hepatizing strategies, the master playing with minds and shower new
something.
POWERTO LEAD
The staffing requires a manager who leads power means the team is a power
applied to achieving the objective of the company and to take work with the team
is power to lead. The power to lead requires the planning, direction, and decisions
with its manager.
The planning, directing and decision making is the tool of leadership.

SALES PLANNING:
The planning helps the manager to take work with his team and team enables to
fight in the field. The team is a power and the power requires planning to
distribute. The manager is a leader but I think who is a leader who is sub-
delegated the authority and responsibility for the cause but the links to the
manager.
The planning makes leaders in their boundaries just like players play the game in
the field wherein every character has to play according to the assigned work.
The staffing requires planning to assign work.
SALES DIRECTION:
The direction means to make out, to prepare, to set, to take work, etcetera with
its character that is assigned for the objective. The manager is a director who
delegated the authority and responsibility on behalf of him to his team. The team
every member is also a director automatically to direct customers, shopkeepers
and marketers.
The direction helps the manager to reach the goal. The good direction becomes
the cause of achieving the objective in short time with low expenses.
The direction is the main tool for success.

DECISIONMAKING
The decision plays a very important role in the sales
management because of which the sale is up and down. The
good decision makes sales up and the bad decision leaves bad
effect on business. The decision in favor of objective must be
immediate because the period of this time is changing moment
ally. The sales require an immediate decision on its subject.
The team must have the power of decision which may be
delegated to the team because the manager does not work in
the field and the team has to take a decision in the market on
behalf of their manager.
The decision power of an employee who is going to sell must be
screening and the sales staff who is being employed must be
tested at all cost.
The sales staffing requires the decision power at all cost.

ABILITYTO TAKE WORK:
The subjectability to take work is applied for staffing. The manager who is going
to be appointed mustbe tested that he can take work with his team. If the
manager does not keep distance with his team, he will be not able to take work
with them.
The staffing requires such manager who is different in talking, dressing and
affecting others. The education, experience and many other qualities mustbe
more than others because he has to take work his team.
The remuneration does separate manager with others that must be according to
his ability.
The ability to take work is the managerial characteristic.
SOCIAL PROBLEMS
The management is the art of taking work with the human’s nature. The man
works for satisfying his need and the need does not solvewithout involving in
social activities. A man has a need and another man has another need. The
exchanging need creates social activities and social activities have various
problems visible and invisible.
The social problems need a solution to better work.

VISIBLEPROBLEM:
Those problems which look food problem, medical problem, education problem,
wearing problem, living problem and many other problems are visible problems.
INVISIBLE PROBLEM
The problems that are unseen whereas mental stress, not understanding with
others, like and dislike, and many more problems facing the team during working
in the field are an invisible problem.
The manager who is assigned to sales must have the ability to solve social
problems so that the team can work free of mind.
The problems visible or invisible are thorns in the way of sales.

MOTIVATION
The staffing requires the motivation of manager and team to achieve the goal.
The motivation supports the morale of team financially and verbally. The
motivation requires;
OPPORTUNITY OF PROGRESS
The motivation of staff or team requires the opportunity of progress. The team is
fighting for the progress of the company and the management of the company
provides the opportunity for progress to the team. The slogan of management
must be we progress, not I.
REWARD
The reward can be verbally or financially from time to time which increases the
ability to work in staff. The good words affect good return and bad words reverts
bad effect to the management.
PRESTIGE
To respect and have respect is proverb teaches us to give prestige to the team.
The calling with good names will become the prestige of team. The method of
prestige is giving good designation and good respect. The prestige teaches the
management that he respects his staff and creates respects among staff.
The motivation needs progress, reward, and prestige.

SELECTIONOF SALES TEAM
The management needs a sales team to help them in realizing their goals and
objectives. Itis desirable for every firm to ensurethat they hire the bestsales
team who will always put the interest of the organization and achieve the
objectives in minimum expenses and maximum sales. However, it is never an easy
task to select the best employees because people have unique abilities and
different ambitions.
The screening, aptitude test, interview, tests, intelligence test, technical test,
personality test and many other methods are applied to select the team.
In order to get down the team in the field, the development and training of staff
are required fromthem.
The staffing is revolving under qualification, training, and self-satisfaction. The
qualification and training prepare team to fight in the field and self-satisfaction
clears the mind of a fighter againstneed and wantfor reaching the goal that is
assigned to them.
- QUALIFICATION + TEAM TRAING + SELF SATISFACTION = GOAL

DIRECTING:
Directing is the executive function of guiding and overseeing subordinates.
Directing means the way where to go and directing means to guide the way
where to go. The direction may be right or wrong, the right way is guided and the
wrong way is not guided and because of the reason the way where to go, the
guide is required who may show the right path. Therefore, the directing requires a
director, who will be the leader of the path and responsible for the up and down.
The director delegated his responsibility and authority for the time being to his
subordinates. The subordinates are responsible for the cause of their director.
A film writer writes a story but the director gives the story in shape then we can
say that the director is also a creator and planner.
The direction demands from his director that he will be good in planning,
organizing, and staffing and these principles will be gone ashtray without them.
The directing guidelines and controls the team.
PLANNING:
The directing requires plan on which its director is planning. The planning enables
the director to lead its team in the right direction. The director is responsible and
authorized for his team. He has to delegate his authority and responsibility to his
team for the time being for reaching to goal.
The good planning requires at every place for the director and the director may
be anyone who can advise on the right path where to go.
The planning enables directing to work.

ORGANIZING:
An organization plays an important role in achieving the objective of the company
and the director assigned to get the task has to organize his team. The team
works from bottom to top in activating the causes that come in working. The
responsibilities are interchanged under the scalar chain.
The director organizes his team under organizational chart wherein every team
member is assigned duties and responsibilities defined boundaries of working,
area and coordination with each other.
The directing requires an organization.
STAFFING:
The staff is the person who accepts directing and the director has to recruit staff
for making team who is to fight in the market against product war. The staff
assists the director to achieve the objective. The staff requires continuing
education and training because these are changing every movement.
The staffing is the essence of an organization.

PRINCIPLEOF DIRECTING
OBJECTIVE
The objectives of an organization are same between the organization and the
director. The director directs according to the objective or aims what is assigned
to him to get the result and becauseof this, the directing cannot be separated
with an organization.
UNITYOF COMMAND
The directing discusses with directing according to the principle of unity of
command which means that the directing has gathered in one man who was
assigned to take the work.
According to this principle, a subordinateis responsibleto his one officer at a
time. If the subordinategets directions frommore than one officer, the
subordinatewill be unable to work properly and resulting in a situation of
confusion, conflictand disagreement are created against right direction.
COMMUNICATION:
Communication means the transfer of information fromone person to another
person. The communication is the way or transmitting ideas, facts, thoughts,
feelings, and values.
According to this principle, it should be monitored by the management that the
subordinates get the same meaning for what has been said. This simplifies the job
of the subordinates in repetition for inquiries.

LEADERSHIP:
The directing requires a leader who could lead his subordinates in achieving the
goal. The leader is who has authority and sub authorized to achieve the goal. A
leader is one who knows theway and shows theway and gets the goal because
the goal is the teamwork not of a leader work.
The leader musthave qualities;
- Honesty and integrity
- Confidence
- Inspireothers
- Commitment and passion
- Good communicator
- Decision-making capabilities
- Accountability
- Delegation and empowerment
- Creative and innovative
- Empathy

MOTIVATION
Motivation in management describes the ways in which managers promote
productivity in their employees.
There are many ways to motivate employees and should consider in;
- Opportunity for progress
- Job satisfaction
- Prestige
- Suitable timing
- Guiding to ability
- Good environment
- Moral support
-
Then, we can say that the man can be motivated by considering his basic needs;
- Economically
- Mentally
- socially

Unity of
command
Communication
Leadership
Mtivation
Objective
Unity of
command
Communication
Leadership
Mtivation
Objective

CONTROLLING:
Control is one the managerial functions like planning, organizing, staffing and
directing. Itis an important function because it helps to check the errors and to
take the correctiveaction so that deviation fromstandards areminimized and
stated goals of the organization are achieved in a desired manner.
The control is a continuous managerial end process under an organizational
hierarchy that helps management for monitoring performance. Itlinks closely
with planning and other managerial functions involve with controlling.
The control should be a tool for achieving organizationalactivities and musthave
following characteristics;
- Control should report deviation
- Control should be forward-looking
- Control should point up exceptions at a strategic point
- Control should be objective
- Control should be flexible
- Control should be reflected organization pattern
- Control should be economical
- Control should be under stable
- Control should indicate corrective action
- Control should help management for monitoring performance
- Control should save time
- Control should have achieving standard
Controlling check errors and to take the corrective action.

Importance of control
The control indicates the up and down in business continuity and because of it, an organization
corrects its errors which become the cause progress. The control helps any organization to achieve
its goal successfully.
The importance of control can be summarized as;
1. Increasing size of business
2. The motivation for efficient employees
3. For complete discipline
4. Helpful in future planning
5. Aids efficiency
6. Decrease in risk
7. Helpful in coordination
8. Helpful in decentralization
PRINCIPLE OF CONTROLLING
- The delegation of authority and responsibility
- Decentralization
- Discipline
- Motivation
- Co-ordination
METHOD OF CONTROLLING
- Establishing standard
- Measurement of performance
- Correction of deviation
DEVICES OF CONTROLLING
- BUDGET
- HIERARCHY
- REPORTS
- ANALYSIS
- STATISTICAL DATA
Controlling requires principle, method, and devices.

The sale department is an entity and the entity requires the
principle of management. The sale fulfills the dream of planning
that makes a goal where to reach is because of sale. The sale
needs the attention of director who sets the target and to get
target he has to walk on the principle of management.
The planning provides the goal to sell, the goal requires
organization, the organization needs staffing, staffing needs
directing and controlling.
WRITER
WRITTEN BY:
SYED AQEEL RAZA
MASTER OF COMMERCE & ARTS

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