Question

The New Sales Procedures The Marin Company has more than 100 field sales representatives who sell a line of complex industrial products. Sales of these products require close work with buyers to determine their product needs, so nearly all sales representatives are college graduates in engineering and science. Other product lines of the Marin Company, such as consumer products, are sold by a separate sales group. Recently, the firm established a new companywide control and report system using a larger computer. The system doubles the amount of time the industrial sales representa- tives spend filling out forms and supplying information that can be fed into the computer. They estimate they now spend as much as two hours daily processing records, and they complain that they now have inadequate time for sales effort. A field sales manager com- mented, "Morale has declined as a result of these new controls and reports. Sales is a rewarding, gratifying profession that is based on individual effort. Sales representatives are happy when they are making sales, since this directly affects their income and self- recognition. The more time they spend with reports, the less time they have to make sales. As a result, they can see their income and recognition declining, and thus they find them- selves resisting changes.

Questions

1. Comment on the sales manager's analysis

2. What alternative approaches to this situation do you recommend? Give reasons.

Answer 1

1. A sales representative earns more by selling products and hence concentrate more on sales. Filling out forms and feeding information is a part of the sales process and it needs to be done. It is true that they feel their income is declining because of these works and must be given to others but in reality they need to do this work as it is also a part of sales.

2, As an alternative the company can allot one team of representatives to do this work in shifts and others can go to work. This gives everyone a relief from form filling and also the work will be completed. The team which does this work can be given special incentives if their targets are reached.