Salesforce Organization & Compensation

Table On Content

Introduction 3

Aims/Objectives 3

Executive Summary 4

Organization Structures 6

Geographical Structure 6

Product Specialization Structure 8

Customer/Industry Based Structure 10

Market Centered Structure 11

Account-Sized Structure 11

New/Existing Account Structure 12

Functional Specialization Structure 12

Structure Recommendations 14

Compensation 15

Compensation Objectives 15

Compensations Plans 16

Fixed Salary 17

Commission Only 19

Salary plus Commission 21

Compensation Recommendations 23

Conclusion 24

Bibliography 25

Introduction

Jenkins Dutton plc. currently have a large problem with their sales force and sales department. The lack of structure and variability throughout of knowledge, compensation packages and specialization has bought chaos to the sales department which is at the forefront of the company in terms of the customer's interaction with the organization.

Money is being wasted on poor compensation packages and travel expenses of which must be addressed as well as the organization of the different groups that have come together from the buying of other companies.

Aims/Objectives

This report has to following aims/Objectives:

* Address the lack of structure within the sales department.

* Bring in-line compensation packages so everyone is getting the same benefits.

* Seek to reassure those who have joined from smaller organizations.

Executive Summary

A Summary of the following report is outlined below:

* The case study has arisen the following concerns:

1. Multiple structures used throughout the sales department.

2. No formal compensation package used throughout the sales department.

This report has addressed these issues and found the following:

* Jenkins Dutton plc's sales department currently has a number of structures running throughout it. Each of these structure's have there strengths and weaknesses but in terms of Jenkins Dutton plc it is important to implement a structure that will locate salespeople in geographical locations, as they operate over a large area. It is also important to make sure salespeople are well educated with the various products available as they operate in technical sectors. Therefore my recommendation would be for a mix between a geographical structure and a product based one.

* They're a number of compensation objectives that must be considered when deciding upon a compensation scheme. Some are angled towards benefiting the employee while others benefit the employer. It is important in Jenkins Dutton plc's case to ensure job security due to the large number of employees who have come from smaller business and seek security.

* The different compensations schemes all offer advantages and disadvantages to Jenkins Dutton plc. . The fact that different employees are on different schemes at present has made me suggest the important to implement a structure as quick as possible to bring about stability and consistency throughout the department. Over time the sales manager can implement different aspects of the different schemes once a structure has been implemented.

* It is important that Jenkins Dutton plc. recognize that money is not the only motivator and realize that using other motivators may bring stability in the short term.

Organization Structures

Within The sales department of any organization there are a number of different structures each with there own strengths and weaknesses that can be implemented.

Geographical Structure

The diagram below shows an example of a geographical structure. The idea of this structure is that the organizations structure is based around geographical location.

Fig 15.1 (a) Jobber & Lancaster (2003) Selling & Sales Management

An advantage to this type on structure is its simplicity. It involves delegating a set region to a sales team of which becomes their responsibility and they will only be responsible for that area. This would benefit Jenkins Dutton plc as they sell their product over a wide area which includes different countries so they could delegate countries to different sales teams which they can base in those countries.

It was also benefit them as there sales department is currently in chaos and this type of structure, in being simple can quickly be implemented to bring about order.

Another advantage to this structure is that as people can be based in the area where they work then travel expenses can be kept down. This would defiantly benefit Jenkins Dutton plc. because of they large area where the receive sales from.

Finally, this structure can help bring about sales as the people responsible will always be in physical reach to the customer. For example, a German customer would feel more obliged to buy a product if it was being sold to them by a German who lives in their area as opposed to an Englishman who has traveled over to see them. Jenkins Dutton plc would benefit from this because of there large sales areas

Moss, C.D. (1979) suggested that a weakness to this structure could