ABSTRACT

This chapter discusses the importance of designing an appropriate organizational framework for the sales force as an integral part of a firm's sales program and examines issues involved in developing such a framework. Organizing the sales force is one of the most important decisions made by sales management. It has a significant impact on every aspect of the salesperson's performance. An organizational structure is simply an arrangement of activities involving a group of people. The goal in designing an organization is to divide and coordinate activities so the group can accomplish its common objectives better by acting as a group than by acting as individuals. The most common form of vertical organization structure, especially in medium- and large-sized firms, is the line and staff organization. In this form, several sales management activities, such as personnel selection, training, and distributor relations, are assigned to separate staff specialists.