Salesforce Organization & Compensation

Topics: Sales, Selling, Marketing Pages: 14 (3635 words) Published: December 10, 2005
Table On Content

Executive Summary4
Organization Structures6
Geographical Structure6
Product Specialization Structure8
Customer/Industry Based Structure10
Market Centered Structure11
Account-Sized Structure11
New/Existing Account Structure12
Functional Specialization Structure12
Structure Recommendations14
Compensation Objectives15
Compensations Plans16
Fixed Salary17
Commission Only19
Salary plus Commission21
Compensation Recommendations23


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.


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...

Bibliography: ANON (200) Selling & Sales Management, Pearsons Education, viewed 20th April 2005,
ANON (2005) Competitive Compensation Plans, Accouttemps, viewed 20th April 2005,
Donaldson, D. (1998) Sales Management Theory & Practice, 2nd Edition, Palgrave MacMillan,
Fogleman, S.L. (2001), Creative Compensation, Dairybusiness, viewed 18th April 2005
Jobber, D, Lancaster, G (2003) Selling & Sales Management, 6th Edition, Perasrson Education,
Moss, C.D, (1979) 'Industrial Salesmen as a Source of Marketing Intelligence ', European Journal of Marketing, vol. 13, no. 3, p. 3.
Warner, C, Buchamn, J (2003) Media Selling, Iowa State Press, viewed 17th April 2005
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