Determination of Activities and Their Volume of Performance

Fundamental to sound organizational design is recognition that activities are being organized. Only after determining all necessary activities and estimating their volume of performance is it possible to answer such questions as: What executive positions are required? What should be their relationships to other positions? What should be the duties and responsibilities of persons who fill these positions?

Grouping Activities into Positions

Next, the activities identified as necessary are allocated to different positions. The planner must keep in mind that activities are aimed at achieving certain objectives ultimately the composite provides the raw material from which job descriptions are compiled (in terms of reporting relationships, job objectives, duties and responsibilities, and performance measures).

Activities are classified and grouped so that closely related tasks are assigned to the same position. Each position should contain not only a sufficient number of tasks but sufficient variation to provide for job challenge, interest, and involvement.

Certain activities are of crucial importance to success of the sales department, and this has implications for organizational design. For example, in a highly competitive field, product merchandising and pricing are assigned to positions high up in the organizational structure. Activities of lesser importance are assigned to lower level jobs.

When a large number of positions is being set up, groups of related jobs are brought together to form departmental subdivisions. The smallest number of administrative levels that permits the organization both to perform its activities and to operate smoothly is best.

Assignment of Personnel to Positions

The next step is to assign personnel to the positions. This brings up the question of whether to recruit special individuals to fill the positions or to modify the positions to fit the capabilities of available personnel. This is a question that has long been controversial. Compromises are frequent. On the one hand, some position requirements are sufficiently general that many individuals possess the necessary qualifications, or can acquire them through training. On the other hand, some individuals possess such unique talents and abilities that it is prudent and profitable to modify the job specifications to fit them. Nevertheless, planners prefer, whenever the situation permits, to have individuals grow into particular jobs rather than to have jobs grow up around individuals.

Provision for Coordination and Control

Sales executives who have others reporting to them (that is, those with line authority) require means to control their subordinates and to coordinate their efforts. They should not be so overburdened with detailed and undefeated responsibilities that they have insufficient time for coordination.

Control and coordination is obtainable through both informal and formal means. Strong leaders control and coordinate the efforts of their subordinates largely on an informal basis. Through sheer force of personality coupled with unusual abilities to attract and hold the loyalty of followers, the strong leader tends to make minimal use of formal instruments of control and coordination. The most important formal instrument of organizational control is the written job description. This instrument sets forth for each job: reporting relationships, job objectives, duties and responsibilities” and performance measurements.

Good job descriptions provide clear pictures of the roles job holders are to play in the sales organization, and are also useful in other situations. Written job descriptions find use in employee selection processes.

An organizational chart, another control instrument, shows formal relations among different positions. A chart reduces confusion about the individual’s role. An organizational chart delineates formal relations and, because of this, rarely provides a true picture of how the organization actually works. Nevertheless, availability of an organizational chart enables members of a sales department to learn the nature of their formal relations with others, to know with whom they are expected to cooperate, and to clarify their formal roles.