Principles of Sales Organization | Structure of a good Sales Organization

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Principles of Sales Organization

Principles of Sales Organization

Principles of Sales Organization A good organization is required to implement the sales policy and sales programmed. Only an efficient organization can co-ordinate various sales activities.

The structure of a good Sales organization is based on the following principles:

  1. The principle of objective. The objectives of the sales organization should be clear, definite and in accordance with the objectives of the enterprise. The work should be well defined.
  2. Principles of co-ordination. There should be co-ordination in the efforts of various departments so that the sales plans and Programs can be completed on time. There should be co-ordination between the sales and another departments. In this regard according to money Reflective coordination.
  3. Principle of Specialization. The basis of this principle is that to achieve specialization in a work. An employee should be given as much work as possible in the field where he has specialization or can attain it.
  4. Principle of the authority and responsibility. Work is done well when the employees are made aware of their responsibility. To get the work done they should also be given authority. According to this principle, authority & Responsibility go hand in hand. Work cannot be done by fixing responsibility alone. ‘
  5. Principle of unity of command. According to this principle, one person cannot serve more than one officer at a time. Therefore an employee should receive orders from one person only. He should fulfill only those orders that are given by his boss.
  6. The principle of span control. A senior officer should have only as many employees under him as he is able to control. In this relation the famous scientist GRACUNAS holds the view that an officer cannot control more than five or six employees.
  7. The principle of Continuity. According to this principle of organization, organizing should continue at all times. Therefore, separate, organization should be set up in every unit.
  8. Principle of Simplicity. There should be simplicity in the structure of the organization so that minimum time is spent in doing every work.
  9. Principle of homogeneity. The principle of homogeneity should be kept in mind while preparing the structure of a sales organization. There should not be any overlapping in the areas of work of two officers. Two officers who do a similar job should have similar rights.
  10. The principle of flexibility. The sales organization should be flexible there should be flexibility so that changes can be made in the organization as and when required.
  11. Principle of Exception. As per this principle the day to day decisions should taken by subordinates while the important and exceptional decision should be taken by higher officials.
  12. Principle of Responsibility. Every employee and official in the organization should be aware of his responsibilities. He should also know who he is accountable to him.

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