1
Acknowledgement
In completing my assignment, I had to take help and guidelines from some respected people
including my dearest lecturers who deserve my greatest gratitude. I would like to thank
Mr.Baratha Herath giving me this great opportunity to do this assignment as well as for
providing me with the most accurate guidelines and assistance on the completion of my
assignment.
I would also like to make this an opportunity to thank my dear friends of SLIM-Kandy
institute for making valuable comments and suggestions on this proposal which gave me a
great inspiration to improve this assignment and for sacrificing their valuable time expecting
to get a successful outcome from the overall assignment.
Lastly, I would like to thank the staff of SLIM-Kandy institute for providing us with a very
comfortable environment to study.
2
Content
Page number
Executive Summary 2
Introduction 3
Task 01 4-19
Task 02 20-31
Task 03 32-33
Conclusion 34
Annexure 35
References 36
3
Executive Summary
As the recruitment consult of Z Tech Information Company I have to complete three tasks in
the assignment.
In Task 01, I have recreated the Z Tech Information’s Companies Sales Organization
Structure and I have discus the important areas of the concept of sales organization to achieve
the cooperate goal of Z Tech Information Company
In Task 02, I have explained the different methods of performance evaluation and suitable
methods of sales force performance evaluation to Z Tech Information Company.
In Task 03, I have discuss the qualities of best sales manager should have and sales
representatives with examples and justifications.
4
Task 01
1.1 Introduction of Task 01
The chairman of Z Tech Company Ltd expects to increase their market share by 6%. (For
12% to 18%) in 2019. (Increasing sales by 300 million).
As the recruitment consultant of Z Tech Company, I have to work to achieving that corporate
goal. Therefore I have been assign to re-engineer their organization based on the corporate
goal in achieving that.
In this situation I have to do some duties. They are,
 Need to suggest the tight organization structure
 Identify the right cadre positions and required sales staff achieving the corporate goals
 Implement a proper performance evaluation method and incentive scheme for these
recruited staff.
 Understand and suggest the role of manager, their qualities required skill to develop
their job description.
 Market development Strategy
Eg:Ansoft’sMatrix
5
1.2Recreating the Z Tech Companies Organization Structure
As the consultant, I should provide right guideline in developing the new sales organizational
structure to achieve their cooperate goal. Therefore, I have to explain clearly the various
concepts in the organizational development. Such as,
 Specialization
 Centralization
 Span of control vs. management level
 Line vs. staff positions
Organization is a network defines the essential relationships among people, tasks and
activities with an aim to optimally utilize and coordinate resources to achieve goals.
Advantages of Sales Organization are as follows,
1. Helps in recruitment, selection, training and supervision
2. Paves way for communication; upward and downward, horizontal and vertical
3. Helps in evaluation and control
4. Assists in devising incentive schemes
5. Eliminates misconceptions and confusion about work activities
6. Provides salespeople with definite goals, purpose and ways to obtain results
7. Generates sense of involvement and commitment in salespeople
8. Result in better service to customers
9. Prevents duplication of efforts
6
As the requirement consultant, I prefer to explain different sales organizational concepts.
- Specialization
(This diagram is from sales management analysis and decision making by Ingram. LaForge.
Avila Schwepker Jr. William, Sixth Edition. Figure 4.1.)
The main idea of specialization is concentrating on a limited number of activities; individuals
can become experts on those tasks, leading to better performance for the entire organization.
- Centralization
A centralized structure is one in which authority and responsibilities are placed at higher
management levels. An organization becomes more decentralized as tasks become the
responsibility of lower level.Z Tech's management should think of decision-making
marketing that supports different levels of management at a single location or when making
decision making.
Large organization of organizations, systems with high structures with different management
levels, require wide structures with various departments
7
- Span of Control vs. management level
(This diagram is from sales management analysis and decision making by Ingram. LaForge.
Avila Schwepker Jr. William, Sixth Edition. Figure 4.1.)
No. of Subordinate reporting directly to the Manager. It has flat structure and tall structure.
According there structures, we can identify different control levels. The management of theZ
Tech company should be deciding the span of control in managing the right protocol to
develop the company structure.
8
Below and the above management levels of span of control is very important
- Line verses Staff Positions
Need to educate staff with responsibilities and the accountability developing their job role,
job assignment and performs evaluation. Should offer Job description for different
management levels and different type of different management level.
9
1.3Assumption of market coverage, market share, market size and market
development with an organization structure
As the recruitment consultant of Z Tech Company, I have to suggest a suitable organizational
structure by,
- Calculating the aspected sales
- Right market growth strategic direction
- Market expansion strategy
According to the AC Nelsons 2017 market report, the total annual value of the software
market in sir Lanka is 300,000,000.
Z Tech company market value is 12% rupees per annum.
Z Tech company market value =
Z Tech company expected 6% value to be achieved in 2019 .
Value percentage increase,
Value target of Z Tech Company is 18,000,000 achieving before the end of 2019.
To achieving the above value target Z Tech company has to identify right strategic direction.
As the consultant of Z Tech company, I have to give the right consultation on the right
direction based onAnsoft’s growth Matriz.
They are,
1. Market Penetration
2. Market development
3. Product development
4. Diversification
10
As the consultant, I would like to suggest to the Z tech company as the most suitable
directions,
1. Market development
2. Product development
- Market sales organization structure
Using this Market development strategy Z Tech Company can increase the sales by
existing products in the new market.
11
- Product sales organization structure
Using this strategy Z Tech company can earn more profits from existing customer by
developing new product for existing market.
Advantage of product sales force structure
- Management control over selling effort allocated to products
- Salespeople become experts in product attributes and applications
Disadvantage of product sales force
- Duplicating the selling approaches
- Competition within the organization
- Territorial sales force structure
Territorial sales force structure define which sales persons are assigned to complete
geographic area and sells the organizations full line products and services to all customer in
that
12
- Functional sales force structure
Z Tech can develop their organization structure based on the organizational function Such as,
- Software sales and marketing division
- Complain handling and technical support division
- Complex sales force structure
Complex sales force structure using different method to develop one structure. This is also
known as the highbred structure.
Advantage of Complex sales force structure
- Suitable for the big organization
Eg: Multinational, number of product, number of function, having huge
customer based
Disadvantage of Complex sales force structure
- High cost of maintaining employees and department
13
All the above advantages and disadvantages I would like to recreate a new hybrid structure
for the Z Tech Information Company
1.3.1Salesforce Deployment
Sales Force deployment decisions can be viewed as providing answers to three interrelated
question.
1. How much selling effort is needed to cover account and prospect adequately so that
sales and profit objectives will be achieved?
2. How many salespeople are required to provide the desired amount of selling effort?
3. How should territories be designed to ensure proper coverage of accounts and to
provide each salesperson with a reasonable opportunity for success?
In this situation, as the consultant of Z Tech Company I have to do some duties. They are,
 Understand the total sales effort in the market sales,
Eg: New prospect
New market
Expansion
 Understand to achieve the extended sales requirement of sales force
 Sales force size determination
 Allocate sales staff to the respective territories based on the new territory plan
and design
14
Sales Territory
Johnson (1994) defined as a sales territory as a configuration of current and potential
accounts for which responsibility has been assigned to a particular sales reprehensive.
As the consultant of Z Tech company, I have to propose the number of territories to cover the
market according to the given expansion strategy.
There are two different major methods in design the sales territories.
1. Market Build-up Method
-In this method, territories are developed by combining small geographical or
control units together.
2. Sales Breakdown method
- This method is used to divide the entire market into small sales territories
to give equal opportunity
1.3.2Interrelatedness of Sales force Deployment Decision
As the consultant of Z Tech Company, I have to explain following general method of
understanding the sales force requirement based on the total effort.
15
As the consultant of Z Tech Company, I have tounderstand number of salesforce to manage
to total work load in 2019 by using different kind of approach.
They are,
1. Breakdown approach
2. Work load approach
3. Incremental Approach
- Breakdown approach
A relatively simple approach for calculating salesforce size, the breakdown approach assumes
that an accurate sales forecast is available. This forecast is then “broken down” to determine
the number of salespeople needed to generate the forecasted level of sales.
Sales force size = Forecasted sales/ Average sales per salesperson
- Work load approach
The first step in the workload approach is to be determining how much selling effort is
needed to cover the firm’s market adequately. Then the number of salespeople required to
provide this amount of selling effort is calculated.
16
- Incremental Approach
The most rigorous approach for calculating salesforce size. Its basic concept is to compare
the marginal profit contribution with the marginal selling costs for each incremental
salesperson.
17
As the consultant I would like to suggest this work load approach to the Z Tech Company.
Control unit 01 Control unit 02
Customer Call
frequency
per annum
No. of
Customer
No. of calls
per annum
No. of
customer
No. of calls
per annum
Extra Large 9 100 900 150 1350
Large 8 250 2000 300 2400
Medium 6 350 2100 450 2700
Small 5 500 2500 600 3000
No of sales calls per each control group = No. of Account in each unit × Call frequency
Workload = Sales person average sales call in a working day × No. of working days
Average sales calls = 4
No. of working days = 240 days
Average sales calls per annum = 240 × 4 =960
In Control unit 01,
Total sales calls per annum = 7500
No. of required sales person = 7500/ 960 = 8
In Control unit 02,
Total sales calls per annum =9450
No. of required sales person = 9450/ 960 = 10
18
Work load approach based on 2019 predicted but average work load based on the present
figures of and individual.
Z Tech Company has 3 types of customers. Such as,
Large customer -200
Medium customer-400
Small customer-550
Total customers= 1150
Z Tech put the length of time per sales calls and required call frequency for each class of
customers as follows,
Large customer = 60 min with 52 calls/year= 52 hrs.
Medium customer = 30 min with 24 calls/year= 12 hrs.
Small customer = 15 min with 12 calls / years = 3 hrs.
Total work load can be calculate as follows,
52× 200 = 10,400
12×400 = 4,800
3×550 = 1,650
Total = 16,850
Z Tech Company decides 40 hrs. of work per week for 48 weeks,
So, Total number of available hrs. for the year = 40×48 = 1920 hrs.
Total number of sales person required,
= Total hrs. required/ Total hrs. Available
19
= 16,850 / 1920
=8Needed 8 sales peoples
We can use Excel/ Mini tab / Sass/ saps to understand the break even and the loss situation Z-
Tech can sell mathematical software as a local agent.
20
Task 02
In this task as the consultant of Z Tech Company I have to answered two question.
1. Need to be proposing the right performance evaluation method to Z Tech.
2. Need to be plan and develop a suitable compensation program for motivating the staff
of Z Tech.
2.1 Employee Performance Appraisal
Dessler (2007) defined performance evaluating as the process of evaluating the current or
past performances of employees relative to their performance stander.
2.1.1 Objective of performance Appraisal
1. To identify gap areas of sales
- People that act as bottlenecks
2. To diagnose problems that salespeople face in their assigned tasks
- Negative attitudes
- Skills
- Lack of motivation
3. To guide sales people how to overcome barriers
- Training
- Compensation
- Job rotation
4. To generate information to develop future plans
- Compensation
- Motivation
- Training plan
5. To suggest suitable remedies to generate future expected outcomes
6. To change recruitment and selection policies.
- Select the minimum qualification of the employees
7. To moderate compensation policies
8. To improve efficiency and effectiveness of the organization
E.g.: Number of customers
2.1.2 Criteria for performance Evaluation
21
1. Systematic (Right method)
2. Formal (Organization and management accepted)
3. Result Oriented (KPI in achieving the organizational goals qualitative or quantitive)
4. Direction (according to the performance enhancement)
5. Understand to employee.
6. Vision for improvement.
7. Realistic
8. Periodic
9. Flexible (time to time changing its parameter according to the environment factor)
10. Encouraging (Constructive)
11. Strategic fitness
12. Fair (Everybody takes equal opportunities)
13. Accuracy (Right method, technic, pre tested)
2.1.3 Steps in Performance appraisal
22
 Set the sales goals and objectives
Z Tech Company’s objective is achieving the expected market share from 12%- 30%
increasing by 6%.
 Design implementation mechanism
Z Tech Company should identify the new market and its potentials in achieving projected
sales goals and maintaining good relationship with customers.
 Establish performance standards
Z Tech has to be achieve number of new markets with in a periods of time
E.g.: No. of prospect
Sales calls vs. productivity sales calls
Monthly volume and value target
Employee carrier development performance
 Measure actual result
In this step Z Tech has to evaluating the performance based on the above through existing
and expected.
 Compare result against standards
The comparison tells the deviations in the performance of the employee from the standards
set.
 Take controlling measures
The last step of the process is to take the decisions to improve the performance of the
employees. Z tech can do many activities like training, policy development, and termination
etc.
2.1.4 Establishing performance stander
Performance standards are planned achievement levels that sales organization expects to
reach at progressive interval through the year.
23
There are two types of performance standers
1. Quantitative performance stander
2. Qualitative performance stander
 Quantitative performance stander
1. Sales volume.
- How much for what period
2. Profits.
- Net profit/ Total sale
3. Sales orders.
- Total sales / Number of order
4. Accounts.
- Total expense
5. Selling expense ratio.
-Selling expense /Total sales
6. Number of calls per day.
7. Cost per call.
8. Market share analysis.
- Company sales as a percentage of industry sales in territory
 Qualitative performance stander
1. Knowledge.
2. Individual skills.
- High skill/ low skill / moderate
3. Personal and personality factor.
24
-Very loyal/ energetic/ strivers / lazy / productive
2.1.5 Performance Appraisal Methods
The number of different performance appraisal methods is available for evaluating the
performance of the employees. Using this method sales manager can measuring the
behaviors, professional development, results and profitability of salespeople.
There are two type of performance appraisal method
1. Traditional Methods
- Traditional methods are relatively older methods of performance appraisals. This
method is based on studying the personal qualities of the employee. It may include
knowledge, initiative, loyalty, leadership and judgment.
2. Modern Methods
- Modern methods were devised to improve the traditional method. That method is
totally covering the employee performance. Such as, attitudes, behavior,
characteristics, personality. It is very comprehensive and need time to complete.
25
As the consultant of Z Tech Company I would like to suggest 360 Degree Feedback method
to Z Tech Company for evaluating their sales staff performance.
 360 Degree Feedback Method
360 degree feedback is an appraisal process used to improve managerial effectiveness by
providing the manager with a more complete assessment of the employee’s effectiveness, his
performance and development needs.
Using this method basically can evaluate through multiple party such as, Sales manager,
internal and external customers and team members.
Participant in 360 Degree Feedback as follows,
26
Positive features of 360 degree appraisal
1. Multiple perspective of person’s performance
2. Rating can evaluate person based on actual contact and observation
3. Feedback is provided from multiple direction (above, below and peer )
4. Learning about weakness and strengths in motivation
Negative features of 360 degree appraisal
1. Feedback from all sources can be overwhelming
2. Conflicting rating can be confusing and frustrating
3. Not typically found in organizations
I would like to suggest compensation scheme to motivate employees in Z Tech Information
Company.
There are two types of compensations.
1. Non compensation Rewards
2. Compensation Rewards
Following motivation process is helpful to motivate employees
Compensation Rewards:
Those given in return for acceptable performance or effort. They can
include nonfinancial compensation.
Non-Compensation Rewards:
Those beneficial factors related to the work situation and well-being of each
salesperson.
27
Sales people who are motivated has to have
1. Self organizer
2. Self discipline
3. Self planner
Optimal sales force reward system
1. Provides an acceptable ratio of costs and sales force output in volume, profit, or other
objectives
2. Encourages specific activities consistent with the firm's overall, marketing, and sales
force objectives and strategies
3. Attracts and retains competent salespeople, thereby enhancing long-term customer
relationships
4. Allows the kind of adjustments that facilitate administration of the reward system.
28
Steps in Developing Compensation Plans
the In managing the compensation plan, Z Tech Information company management has to go
through the following steps.
1. Review job description
Should go through the employee’s job list and identify their job climate
E.g.:
 geographical differences
 office based
 job responsibilities
2. Establish Compensation objectives
To motivate the employees in reaching the organizational set objectives.
 Increase the market coverage
 Achieving new prospects to increase the profit shares
3. According to the incremental share, company has to redesign the payments structure
4. Choose the compensation method
 Salary plus incentives
 Salary plus bonus
29
5. Decide on indirect compensation
Non financial rewards such as
 Promotions
 Job recognition
 Other social indirect factors
6. Review the entire plan
The management of the organization has to review the designed plan and need to understand
its motivational aspects according to the requirement of strategic direction.
Additional claims for covering the employees
 Telephone bills
 Additional barter
7. Implement the plan
As the consult, I would like to suggest the non compensation and compensation methods in
reward system.
Non compensation Compensation
Salary
Vehicle rental charges
Telephone bills
Night out payments
Meal barter
Performance based payments
Incentives for target achieve
Commission on target
Bonus
Recognition/ acceptance
Promotions
Responsibilities
30
Advantages of Straight Salary in rewards
• Advantages
• Sense of security.
• Stability of income.
• Resists high turnover of sales people.
• Simple to understand.
• Disadvantages of Straight salary
• Selling expenses not related to sales volume.
Equal treatment to high and low performing employees
Advantages and disadvantages of straight commission
• Advantages
• Great motivator.
• Differentiates high and low performers.
• Provides unlimited opportunity to earn.
• Selling costs related to sales volumes.
• Disadvantages
• Loss of control.
• Salespeople focus on easy selling items.
• No/little attention to after-sales service
I would like to suggest a new reward scheme for Z Tech Information Company using
advantages
31
Upper management
 Salary plus bonus
 Special medical benefits
 Paid vacations
 other customer entertainment
repayment
Middle management  Salary
 Bonus
 Commission
 Promotion
Junior management
 . Salary plus bonus
 Incentives
 Night out claims
 Petrol
 Meal barter
 Telephone bills
 other administration bill repayment
32
Task 03
I would like to suggest best qualities of a sales manager and sales representatives should
have.
Qualities of a sales manager are as follows
• Clear understanding
• Self respect
• Educational and technical qualification.
• Interpersonal skills
• Communication
• Team Management
• Empathy and adaptability
• Ability to lead
• Physical strength
• Stamina
• Mental energy
• Passion
• Initiative
• Emotional Intelligence
• Tact
Quality of sales manager should have Develop and believe in sales people to help them to
achieve their sales goals. Focus on the company’s clients and its world.
Work with all sales people to bring out the best in them.
Sales manager has to be accountable and take responsibilities for the team’s mistakes
33
Allow the sales persons to have that role without understating. Should have the coaching and
attitudes to lead the sales team.
Qualities of sales representatives
 Pleasant personality
 Likes dealing with people
 Has the right and positive attitudes
 Communication skills
 Honesty
 Flexibility
 Technical competency
All the above qualities should have to have in a sales person. Need to be very loyal and
friendly to the customers. They have to be loyal to their managers and organization as well.
When selling the products to customers they should have to have good knowledge about the
product there are selling also they have to listen to the customers question and should give
solutions for their issues. These are the good and best qualities of a sales people.
34
Conclusion
The process of hiring begins with human resources planning which helps to determine the
number and type of people on organization needs. Job analysis and job design enables to
specify the task and duties of hobs and qualification expected from prospective job analysis.
In order to attract people for the jobs, the organization must communicate the position in such
a way that job seekers respond. To be cost effective the recruitment process should attract.
35
Annexure
36
References
1. Ingram. LaForge. Avila Schwepker Jr. Williams. Sales Management Analysis and
Decision Making Study kit. Sixth Edition
2.

SLIM PGDIP stage 2 (MSD)

  • 1.
    1 Acknowledgement In completing myassignment, I had to take help and guidelines from some respected people including my dearest lecturers who deserve my greatest gratitude. I would like to thank Mr.Baratha Herath giving me this great opportunity to do this assignment as well as for providing me with the most accurate guidelines and assistance on the completion of my assignment. I would also like to make this an opportunity to thank my dear friends of SLIM-Kandy institute for making valuable comments and suggestions on this proposal which gave me a great inspiration to improve this assignment and for sacrificing their valuable time expecting to get a successful outcome from the overall assignment. Lastly, I would like to thank the staff of SLIM-Kandy institute for providing us with a very comfortable environment to study.
  • 2.
    2 Content Page number Executive Summary2 Introduction 3 Task 01 4-19 Task 02 20-31 Task 03 32-33 Conclusion 34 Annexure 35 References 36
  • 3.
    3 Executive Summary As therecruitment consult of Z Tech Information Company I have to complete three tasks in the assignment. In Task 01, I have recreated the Z Tech Information’s Companies Sales Organization Structure and I have discus the important areas of the concept of sales organization to achieve the cooperate goal of Z Tech Information Company In Task 02, I have explained the different methods of performance evaluation and suitable methods of sales force performance evaluation to Z Tech Information Company. In Task 03, I have discuss the qualities of best sales manager should have and sales representatives with examples and justifications.
  • 4.
    4 Task 01 1.1 Introductionof Task 01 The chairman of Z Tech Company Ltd expects to increase their market share by 6%. (For 12% to 18%) in 2019. (Increasing sales by 300 million). As the recruitment consultant of Z Tech Company, I have to work to achieving that corporate goal. Therefore I have been assign to re-engineer their organization based on the corporate goal in achieving that. In this situation I have to do some duties. They are,  Need to suggest the tight organization structure  Identify the right cadre positions and required sales staff achieving the corporate goals  Implement a proper performance evaluation method and incentive scheme for these recruited staff.  Understand and suggest the role of manager, their qualities required skill to develop their job description.  Market development Strategy Eg:Ansoft’sMatrix
  • 5.
    5 1.2Recreating the ZTech Companies Organization Structure As the consultant, I should provide right guideline in developing the new sales organizational structure to achieve their cooperate goal. Therefore, I have to explain clearly the various concepts in the organizational development. Such as,  Specialization  Centralization  Span of control vs. management level  Line vs. staff positions Organization is a network defines the essential relationships among people, tasks and activities with an aim to optimally utilize and coordinate resources to achieve goals. Advantages of Sales Organization are as follows, 1. Helps in recruitment, selection, training and supervision 2. Paves way for communication; upward and downward, horizontal and vertical 3. Helps in evaluation and control 4. Assists in devising incentive schemes 5. Eliminates misconceptions and confusion about work activities 6. Provides salespeople with definite goals, purpose and ways to obtain results 7. Generates sense of involvement and commitment in salespeople 8. Result in better service to customers 9. Prevents duplication of efforts
  • 6.
    6 As the requirementconsultant, I prefer to explain different sales organizational concepts. - Specialization (This diagram is from sales management analysis and decision making by Ingram. LaForge. Avila Schwepker Jr. William, Sixth Edition. Figure 4.1.) The main idea of specialization is concentrating on a limited number of activities; individuals can become experts on those tasks, leading to better performance for the entire organization. - Centralization A centralized structure is one in which authority and responsibilities are placed at higher management levels. An organization becomes more decentralized as tasks become the responsibility of lower level.Z Tech's management should think of decision-making marketing that supports different levels of management at a single location or when making decision making. Large organization of organizations, systems with high structures with different management levels, require wide structures with various departments
  • 7.
    7 - Span ofControl vs. management level (This diagram is from sales management analysis and decision making by Ingram. LaForge. Avila Schwepker Jr. William, Sixth Edition. Figure 4.1.) No. of Subordinate reporting directly to the Manager. It has flat structure and tall structure. According there structures, we can identify different control levels. The management of theZ Tech company should be deciding the span of control in managing the right protocol to develop the company structure.
  • 8.
    8 Below and theabove management levels of span of control is very important - Line verses Staff Positions Need to educate staff with responsibilities and the accountability developing their job role, job assignment and performs evaluation. Should offer Job description for different management levels and different type of different management level.
  • 9.
    9 1.3Assumption of marketcoverage, market share, market size and market development with an organization structure As the recruitment consultant of Z Tech Company, I have to suggest a suitable organizational structure by, - Calculating the aspected sales - Right market growth strategic direction - Market expansion strategy According to the AC Nelsons 2017 market report, the total annual value of the software market in sir Lanka is 300,000,000. Z Tech company market value is 12% rupees per annum. Z Tech company market value = Z Tech company expected 6% value to be achieved in 2019 . Value percentage increase, Value target of Z Tech Company is 18,000,000 achieving before the end of 2019. To achieving the above value target Z Tech company has to identify right strategic direction. As the consultant of Z Tech company, I have to give the right consultation on the right direction based onAnsoft’s growth Matriz. They are, 1. Market Penetration 2. Market development 3. Product development 4. Diversification
  • 10.
    10 As the consultant,I would like to suggest to the Z tech company as the most suitable directions, 1. Market development 2. Product development - Market sales organization structure Using this Market development strategy Z Tech Company can increase the sales by existing products in the new market.
  • 11.
    11 - Product salesorganization structure Using this strategy Z Tech company can earn more profits from existing customer by developing new product for existing market. Advantage of product sales force structure - Management control over selling effort allocated to products - Salespeople become experts in product attributes and applications Disadvantage of product sales force - Duplicating the selling approaches - Competition within the organization - Territorial sales force structure Territorial sales force structure define which sales persons are assigned to complete geographic area and sells the organizations full line products and services to all customer in that
  • 12.
    12 - Functional salesforce structure Z Tech can develop their organization structure based on the organizational function Such as, - Software sales and marketing division - Complain handling and technical support division - Complex sales force structure Complex sales force structure using different method to develop one structure. This is also known as the highbred structure. Advantage of Complex sales force structure - Suitable for the big organization Eg: Multinational, number of product, number of function, having huge customer based Disadvantage of Complex sales force structure - High cost of maintaining employees and department
  • 13.
    13 All the aboveadvantages and disadvantages I would like to recreate a new hybrid structure for the Z Tech Information Company 1.3.1Salesforce Deployment Sales Force deployment decisions can be viewed as providing answers to three interrelated question. 1. How much selling effort is needed to cover account and prospect adequately so that sales and profit objectives will be achieved? 2. How many salespeople are required to provide the desired amount of selling effort? 3. How should territories be designed to ensure proper coverage of accounts and to provide each salesperson with a reasonable opportunity for success? In this situation, as the consultant of Z Tech Company I have to do some duties. They are,  Understand the total sales effort in the market sales, Eg: New prospect New market Expansion  Understand to achieve the extended sales requirement of sales force  Sales force size determination  Allocate sales staff to the respective territories based on the new territory plan and design
  • 14.
    14 Sales Territory Johnson (1994)defined as a sales territory as a configuration of current and potential accounts for which responsibility has been assigned to a particular sales reprehensive. As the consultant of Z Tech company, I have to propose the number of territories to cover the market according to the given expansion strategy. There are two different major methods in design the sales territories. 1. Market Build-up Method -In this method, territories are developed by combining small geographical or control units together. 2. Sales Breakdown method - This method is used to divide the entire market into small sales territories to give equal opportunity 1.3.2Interrelatedness of Sales force Deployment Decision As the consultant of Z Tech Company, I have to explain following general method of understanding the sales force requirement based on the total effort.
  • 15.
    15 As the consultantof Z Tech Company, I have tounderstand number of salesforce to manage to total work load in 2019 by using different kind of approach. They are, 1. Breakdown approach 2. Work load approach 3. Incremental Approach - Breakdown approach A relatively simple approach for calculating salesforce size, the breakdown approach assumes that an accurate sales forecast is available. This forecast is then “broken down” to determine the number of salespeople needed to generate the forecasted level of sales. Sales force size = Forecasted sales/ Average sales per salesperson - Work load approach The first step in the workload approach is to be determining how much selling effort is needed to cover the firm’s market adequately. Then the number of salespeople required to provide this amount of selling effort is calculated.
  • 16.
    16 - Incremental Approach Themost rigorous approach for calculating salesforce size. Its basic concept is to compare the marginal profit contribution with the marginal selling costs for each incremental salesperson.
  • 17.
    17 As the consultantI would like to suggest this work load approach to the Z Tech Company. Control unit 01 Control unit 02 Customer Call frequency per annum No. of Customer No. of calls per annum No. of customer No. of calls per annum Extra Large 9 100 900 150 1350 Large 8 250 2000 300 2400 Medium 6 350 2100 450 2700 Small 5 500 2500 600 3000 No of sales calls per each control group = No. of Account in each unit × Call frequency Workload = Sales person average sales call in a working day × No. of working days Average sales calls = 4 No. of working days = 240 days Average sales calls per annum = 240 × 4 =960 In Control unit 01, Total sales calls per annum = 7500 No. of required sales person = 7500/ 960 = 8 In Control unit 02, Total sales calls per annum =9450 No. of required sales person = 9450/ 960 = 10
  • 18.
    18 Work load approachbased on 2019 predicted but average work load based on the present figures of and individual. Z Tech Company has 3 types of customers. Such as, Large customer -200 Medium customer-400 Small customer-550 Total customers= 1150 Z Tech put the length of time per sales calls and required call frequency for each class of customers as follows, Large customer = 60 min with 52 calls/year= 52 hrs. Medium customer = 30 min with 24 calls/year= 12 hrs. Small customer = 15 min with 12 calls / years = 3 hrs. Total work load can be calculate as follows, 52× 200 = 10,400 12×400 = 4,800 3×550 = 1,650 Total = 16,850 Z Tech Company decides 40 hrs. of work per week for 48 weeks, So, Total number of available hrs. for the year = 40×48 = 1920 hrs. Total number of sales person required, = Total hrs. required/ Total hrs. Available
  • 19.
    19 = 16,850 /1920 =8Needed 8 sales peoples We can use Excel/ Mini tab / Sass/ saps to understand the break even and the loss situation Z- Tech can sell mathematical software as a local agent.
  • 20.
    20 Task 02 In thistask as the consultant of Z Tech Company I have to answered two question. 1. Need to be proposing the right performance evaluation method to Z Tech. 2. Need to be plan and develop a suitable compensation program for motivating the staff of Z Tech. 2.1 Employee Performance Appraisal Dessler (2007) defined performance evaluating as the process of evaluating the current or past performances of employees relative to their performance stander. 2.1.1 Objective of performance Appraisal 1. To identify gap areas of sales - People that act as bottlenecks 2. To diagnose problems that salespeople face in their assigned tasks - Negative attitudes - Skills - Lack of motivation 3. To guide sales people how to overcome barriers - Training - Compensation - Job rotation 4. To generate information to develop future plans - Compensation - Motivation - Training plan 5. To suggest suitable remedies to generate future expected outcomes 6. To change recruitment and selection policies. - Select the minimum qualification of the employees 7. To moderate compensation policies 8. To improve efficiency and effectiveness of the organization E.g.: Number of customers 2.1.2 Criteria for performance Evaluation
  • 21.
    21 1. Systematic (Rightmethod) 2. Formal (Organization and management accepted) 3. Result Oriented (KPI in achieving the organizational goals qualitative or quantitive) 4. Direction (according to the performance enhancement) 5. Understand to employee. 6. Vision for improvement. 7. Realistic 8. Periodic 9. Flexible (time to time changing its parameter according to the environment factor) 10. Encouraging (Constructive) 11. Strategic fitness 12. Fair (Everybody takes equal opportunities) 13. Accuracy (Right method, technic, pre tested) 2.1.3 Steps in Performance appraisal
  • 22.
    22  Set thesales goals and objectives Z Tech Company’s objective is achieving the expected market share from 12%- 30% increasing by 6%.  Design implementation mechanism Z Tech Company should identify the new market and its potentials in achieving projected sales goals and maintaining good relationship with customers.  Establish performance standards Z Tech has to be achieve number of new markets with in a periods of time E.g.: No. of prospect Sales calls vs. productivity sales calls Monthly volume and value target Employee carrier development performance  Measure actual result In this step Z Tech has to evaluating the performance based on the above through existing and expected.  Compare result against standards The comparison tells the deviations in the performance of the employee from the standards set.  Take controlling measures The last step of the process is to take the decisions to improve the performance of the employees. Z tech can do many activities like training, policy development, and termination etc. 2.1.4 Establishing performance stander Performance standards are planned achievement levels that sales organization expects to reach at progressive interval through the year.
  • 23.
    23 There are twotypes of performance standers 1. Quantitative performance stander 2. Qualitative performance stander  Quantitative performance stander 1. Sales volume. - How much for what period 2. Profits. - Net profit/ Total sale 3. Sales orders. - Total sales / Number of order 4. Accounts. - Total expense 5. Selling expense ratio. -Selling expense /Total sales 6. Number of calls per day. 7. Cost per call. 8. Market share analysis. - Company sales as a percentage of industry sales in territory  Qualitative performance stander 1. Knowledge. 2. Individual skills. - High skill/ low skill / moderate 3. Personal and personality factor.
  • 24.
    24 -Very loyal/ energetic/strivers / lazy / productive 2.1.5 Performance Appraisal Methods The number of different performance appraisal methods is available for evaluating the performance of the employees. Using this method sales manager can measuring the behaviors, professional development, results and profitability of salespeople. There are two type of performance appraisal method 1. Traditional Methods - Traditional methods are relatively older methods of performance appraisals. This method is based on studying the personal qualities of the employee. It may include knowledge, initiative, loyalty, leadership and judgment. 2. Modern Methods - Modern methods were devised to improve the traditional method. That method is totally covering the employee performance. Such as, attitudes, behavior, characteristics, personality. It is very comprehensive and need time to complete.
  • 25.
    25 As the consultantof Z Tech Company I would like to suggest 360 Degree Feedback method to Z Tech Company for evaluating their sales staff performance.  360 Degree Feedback Method 360 degree feedback is an appraisal process used to improve managerial effectiveness by providing the manager with a more complete assessment of the employee’s effectiveness, his performance and development needs. Using this method basically can evaluate through multiple party such as, Sales manager, internal and external customers and team members. Participant in 360 Degree Feedback as follows,
  • 26.
    26 Positive features of360 degree appraisal 1. Multiple perspective of person’s performance 2. Rating can evaluate person based on actual contact and observation 3. Feedback is provided from multiple direction (above, below and peer ) 4. Learning about weakness and strengths in motivation Negative features of 360 degree appraisal 1. Feedback from all sources can be overwhelming 2. Conflicting rating can be confusing and frustrating 3. Not typically found in organizations I would like to suggest compensation scheme to motivate employees in Z Tech Information Company. There are two types of compensations. 1. Non compensation Rewards 2. Compensation Rewards Following motivation process is helpful to motivate employees Compensation Rewards: Those given in return for acceptable performance or effort. They can include nonfinancial compensation. Non-Compensation Rewards: Those beneficial factors related to the work situation and well-being of each salesperson.
  • 27.
    27 Sales people whoare motivated has to have 1. Self organizer 2. Self discipline 3. Self planner Optimal sales force reward system 1. Provides an acceptable ratio of costs and sales force output in volume, profit, or other objectives 2. Encourages specific activities consistent with the firm's overall, marketing, and sales force objectives and strategies 3. Attracts and retains competent salespeople, thereby enhancing long-term customer relationships 4. Allows the kind of adjustments that facilitate administration of the reward system.
  • 28.
    28 Steps in DevelopingCompensation Plans the In managing the compensation plan, Z Tech Information company management has to go through the following steps. 1. Review job description Should go through the employee’s job list and identify their job climate E.g.:  geographical differences  office based  job responsibilities 2. Establish Compensation objectives To motivate the employees in reaching the organizational set objectives.  Increase the market coverage  Achieving new prospects to increase the profit shares 3. According to the incremental share, company has to redesign the payments structure 4. Choose the compensation method  Salary plus incentives  Salary plus bonus
  • 29.
    29 5. Decide onindirect compensation Non financial rewards such as  Promotions  Job recognition  Other social indirect factors 6. Review the entire plan The management of the organization has to review the designed plan and need to understand its motivational aspects according to the requirement of strategic direction. Additional claims for covering the employees  Telephone bills  Additional barter 7. Implement the plan As the consult, I would like to suggest the non compensation and compensation methods in reward system. Non compensation Compensation Salary Vehicle rental charges Telephone bills Night out payments Meal barter Performance based payments Incentives for target achieve Commission on target Bonus Recognition/ acceptance Promotions Responsibilities
  • 30.
    30 Advantages of StraightSalary in rewards • Advantages • Sense of security. • Stability of income. • Resists high turnover of sales people. • Simple to understand. • Disadvantages of Straight salary • Selling expenses not related to sales volume. Equal treatment to high and low performing employees Advantages and disadvantages of straight commission • Advantages • Great motivator. • Differentiates high and low performers. • Provides unlimited opportunity to earn. • Selling costs related to sales volumes. • Disadvantages • Loss of control. • Salespeople focus on easy selling items. • No/little attention to after-sales service I would like to suggest a new reward scheme for Z Tech Information Company using advantages
  • 31.
    31 Upper management  Salaryplus bonus  Special medical benefits  Paid vacations  other customer entertainment repayment Middle management  Salary  Bonus  Commission  Promotion Junior management  . Salary plus bonus  Incentives  Night out claims  Petrol  Meal barter  Telephone bills  other administration bill repayment
  • 32.
    32 Task 03 I wouldlike to suggest best qualities of a sales manager and sales representatives should have. Qualities of a sales manager are as follows • Clear understanding • Self respect • Educational and technical qualification. • Interpersonal skills • Communication • Team Management • Empathy and adaptability • Ability to lead • Physical strength • Stamina • Mental energy • Passion • Initiative • Emotional Intelligence • Tact Quality of sales manager should have Develop and believe in sales people to help them to achieve their sales goals. Focus on the company’s clients and its world. Work with all sales people to bring out the best in them. Sales manager has to be accountable and take responsibilities for the team’s mistakes
  • 33.
    33 Allow the salespersons to have that role without understating. Should have the coaching and attitudes to lead the sales team. Qualities of sales representatives  Pleasant personality  Likes dealing with people  Has the right and positive attitudes  Communication skills  Honesty  Flexibility  Technical competency All the above qualities should have to have in a sales person. Need to be very loyal and friendly to the customers. They have to be loyal to their managers and organization as well. When selling the products to customers they should have to have good knowledge about the product there are selling also they have to listen to the customers question and should give solutions for their issues. These are the good and best qualities of a sales people.
  • 34.
    34 Conclusion The process ofhiring begins with human resources planning which helps to determine the number and type of people on organization needs. Job analysis and job design enables to specify the task and duties of hobs and qualification expected from prospective job analysis. In order to attract people for the jobs, the organization must communicate the position in such a way that job seekers respond. To be cost effective the recruitment process should attract.
  • 35.
  • 36.
    36 References 1. Ingram. LaForge.Avila Schwepker Jr. Williams. Sales Management Analysis and Decision Making Study kit. Sixth Edition 2.