No one can whistle the

symphony, it takes an orchestra

to play it
 Organization is a cooperative
system in which people gather
together and formally agree to
combine their efforts for a
common purpose
 Function of a Sales
Organization
Review Plan and Objectives : (What)

Determining Activities; (How)

Evaluating Results.

Classifying and grouping activities;( Who)

Assigning Work & Process:

(Linking what, how & who)
 Component of an organization
• Social Entities:
• Goal Oriented:
• Structured Activity System:
• Permeable Boundaries:
 Factors determining the
Organization
• Chain of command
• Authority
• Span of control
• Centralization & De centralization
 Guide Lines for Effective
Organization
• The line of authority should be clearly stated and
percolate from top to bottom
• Each person should report to only oe boss
• Responsibility and Authority should be clearly
established
• Supervisors are responsible for the act of their
subordinate.
• The authority and responsibility should be delegated
• No of level of authority should be as less as possible.
• The line and staff function should be kept separate
• Span of control shoud be reasonable and well
established
 Chain of Command
1. is an hierarchical line of authority that
connects subordinates and a manger.e.g
Who reports to whom

2. One to one reporting

3. Command should flow from top to bottom

 Authority
• It is power to give order and make sure
that these orders ARE OBEYED
• Responsibility: it the accountability with
Authority
• It a duty to perform the task in a
satisfactory manner
• Both go hand in hand
• Responsibility can not be delegated
while authority can be delegated
 Delegation of Authority
• Downwards transfer of formal authority
from one person to another person
Guide lines of Delegation/ principle
of delegation
• Functional clarity
• Matching Authority And Responsibility
• Unity of Command
• Principle of communication
 Process of Authority Delegation
• Step 1: Assignments of tasks,
• As per capabilities of the task
• Step2: Delegation of decision making authority
• Step 3: Creation of obligation
• Step 4: Creation of accountability
 Advantage of Delegation
• Quick decision making
• Motivational factor
• Allows manager for strategic planning
• Creates talent pool
 Disadvantage of delegation
• Lack of coordination
• Misuse of authority
• Expensive
• Failure of supervision
 Barriers of Delegation
• Manager not having confidence over the
subordinate
• Fear of being perceived as a lazy
manager
• Competition from subordinate
• Lack the ability to direct the subordinate
• Reluctance from subordinate:
• Fear of taking a wrong decision
• Not being paid fr taking extra responsibility
 Span of Control
• No of subordinates under one manager
 Factors determining the span of
control
• Similarity of the function

• Complexity of the function

• Geographical closeness of employee

• Support function of a manager

 Centralization & Decentralization
• Goals and objectives of a organization
• Size of the organization
• Location of target market
• Competecy of top mgt
• competency of lower mgt
Factor that determine structure,i.e.
Centralisation/Decentralisation
• Goals and objectives of a organization
• Size of the organization
• Location of target market
• Competency of top mgt
• competency of lower mgt
 Advantages of Centralization
• Cordination:
• Quality of decision mking
• Speady decision
• Optimal utilization of resourses
• Better crisis management
Advantages of Decentralization
• Reduces the top management work load
• Creates talent pool
• Motivates the subordinate
• Increase the productivity
 Assignments
• What do you mean by vertical
organization? Describe some of the basic
elements of vertical organization?
• Discuss the centralization and
decentralization issues with its pros and
cons.
 Types of Organisational
Structure
• Line Structure
• Line & Staff Structure
• Functional Structure
• Divisional Structure
• Product structure
• Geographical structure
Designing the sales force
S ales force srtegy

Determini

Classifying and grouping activities;( Who)

Assigning Work & Process:

(Linking what, how & who)
Evaluating Results.