Organization+of+Sales+Force - Organization of Sales Force...

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1 Organization of Sales Force Chapter 11 &15
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2 Three basic tasks must be accomplished by all organizations 2. Maintenance of Order in achieving sales forces 4. The assignment of specific task responsibilities 6. of the firm
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3 Developing a Sales Organization 1. Formal and informal organization 2. Horizontal and vertical organization 3. Centralized and decentralized organization 4. The line and staff components of the organization 5. The size of any company
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4 1. Formal vs. Informal Organization Formal Organization is a management created relationship between department and individuals. Informal Organization is a communication pattern form from the social relationships existing within the formal Organization. (Grapevine: It’s a Communication pattern of the informal Organization. It only exists in an informal Organization) .
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5 2. Horizontal vs. Vertical Organization Horizontal Organization is one in which the number of management level is small & the number of managers in each level is large. (figure 11-4, pg 240) Vertical Organization is one that has several levels of management, all reporting upward to a higher level (figure 11-3, pg 240). The factor that determines whether a vertical or horizontal organization structure should be employed is the effective span of control; number of employees reporting to the next higher level.
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6 3. Centralized vs. Decentralized Organization Centralized organization is one in which responsibility & the authority is concentrated at the higher level of management. Decentralized organization is one in which the responsibility & the authority are delegated to the lower level of management. There is usually a higher degree of decentralization as an organization grows in size. Increased size results in top executives being less able to deal with the range of decisions that they handled when the firm was small. By necessity responsibility for making these decisions in then shifted downwards.
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7 4. The Line vs. Staff components Line function is the primary organization activity. Staff function
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Organization+of+Sales+Force - Organization of Sales Force...

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