Sales Management

Session -5
Product,
Market, and
Geographic
Structures
 Types of Divisional Structures
• Product Structure
– Managers place each distinct product line or
business in its own self-contained division
– Divisional managers have the responsibility for
devising an appropriate business-level strategy
to allow the division to compete effectively in its
industry
 Product Structure
• Allows functional managers to specialize in
one product area
• Division managers become experts in their
area
• Removes need for direct supervision of
division by corporate managers
• Divisional management improves the use of
resources
 Types of Divisional Structures
• Geographic Structure
– Divisions are broken down by geographic location
• Global geographic structure
– Managers locate different divisions in each of the
world regions where the organization operates.
– Generally, occurs when managers are
pursuing a multi-domestic strategy
 Types of Divisional Structures
• Global Product Structure
– Each product division takes responsibility for
deciding where to manufacture its products and
how to market them in foreign countries
worldwide
 Global Geographic and
Global Product Structures
 Types of Divisional Structures
• Market Structure
– Groups divisions according to the particular
kinds of customers they serve
– Allows managers to be responsive to the needs
of their customers and act flexibly in making
decisions in response to customers’ changing
needs
 Matrix Design Structure
• Matrix Structure
– An organizational structure that simultaneously
groups people and resources by function and
product.
• Results in a complex network of superior-
subordinate reporting relationships.
• The structure is very flexible and can respond rapidly
to the need for change.
• Each employee has two bosses (functional manager
and product manager) and possibly cannot satisfy
both.
Matrix Structure
 Product Team Design Structure
• Product Team Structure
– Does away with dual reporting relationships and
two-boss managers
– Functional employees are permanently assigned
to a cross-functional team that is empowered to
bring a new or redesigned product to work
 Product Team Design Structure
• Product Team Structure
– Cross-functional team is composed of a group of
managers from different departments working
together to perform organizational tasks.
Product Team Structure
 Hybrid Structures
• Hybrid Structure
– The structure of a large organization that has
many divisions and simultaneously uses many
different organizational structures
Geographic Specialization

Many large corporations are organized by

geographic territory. This type of organization is
generally used by companies with more than
strictly local distribution of their products.
Managerial Vice President
Level of Marketing

National Sales
Manager
Operating
Level
Eastern Divisional Central Divisional Western Divisional
Sales Manager Sales Manager Sales Manager

7 Regional Sales 6 Regional Sales 5 Regional Sales

ManagersA ManagersA Managers A

35 District Sales 30 District Sales 25 District Sales

Managers B Managers
B
Managers B

240 Salespeople C 240 Salespeople C 200 Salespeople C

Product Specialization

Another common type of organization in large

companies is based on the firm’s product. The
entire company may be organized by product,
with separate sales, advertising, marketing, and
so on, along with staffs for each, or some
functional units may remain centralized.
Customer Specialization

Companies with several separate and distinct

markets accounting for major portions of their
sales often organize based on these markets or
customers.
Combination of Design Elements

Many companies organize on the basis of some

combination of functional, geographic, product,
or customer design.
MULTIPLE DESIGN FACTORS

President

Functional Vice President Vice President Vice President

Production Marketing Engineering

Geographic U.S. International

Marketing Marketing
Manager Manager

Customer Consumer Industrial International

Goods Goods Sales
Managers Managers Manager

Product Soap Products Paper Products Food Products Latin Asian and
European
Divisional Divisional Divisional American African
Division
Manager Manager Manager Division Division

Eastern Central Western

Sales Sales Sales
Division Division Division
Companies use four basic organizational
methods.

1. A separate division to deal with major

accounts.
2. Select members of the current sales
force.
3. Sales managers.
4. A combination of 1, 2, and 3.
NEW FORMS OF ORGANIZATIONS
Strategic Alliances

A strategic alliance is a formal relationship created with

the purpose of joint pursuit of mutual goals.
CROSS-FUNCTIONAL SELLING TEAM

Customer

Technical
Sales Marketing Manufacturing
Support
Supplier Selling Team
Team based Organizations

Many organizations are more responsive to their

environment because they use work teams as
their basic building blocks.
“It’s amazing to me that our competitors
think the customer is the dealer.”
Michael Dell

“Sales Leader: Tops in Global Basis.”

Be Direct: DELL
 Introduction
• Before Michael Dell, innovation was
about well-schooled engineers in R&D
labs inventing high-margin products and
technologies.
• Dell instead trained his eye on finding the
most efficient way to get tech products
into the hands of the consumers.

• Perfected the credo— “Cut out the

middleman.”
 Introduction

• Perfected the credo— “Cut out the

middleman.”
• DELL eliminated the need for inventory or
middlemen and gave itself a built-in price
advantage, which it in part keeps as profit
and in part passes on to customers.”
Fortune 11/28/2005
 Introduction

• Michael Dell: “The

only constant thing about
business is that every-thing is
changing. We have to take
advantage of change and not
let it take advantage of us.”
 Introduction
• “Selling tech products by
telephone and then the
Internet… Michael broke the
paradigm about how to run a
computer business; they
haven’t been so great at
finding the next paradigm.”
BusinessWeek 3/6/06
 Introduction
• Michael Dell is the chairman of the Board
of Directors of Dell, the company he
founded in ’84 for $1,000.
• With an unprecedented idea---build
relationships directly with consumers
(born in February ‘65).
• Dell’s commitment to consumer value, to
the team, to being direct, to operating
responsibly and, ultimately to winning.
Continues to differentiate Dell from other
companies.
 Introduction
• DELL did not want the “unsophisticated”
customer.
• DELL wants to sell to the “educated” customer.
• DELL wants the consumer to buy their third or
fourth system from DELL. It’s more profitable
and easier.
 Introduction
• Why DELL case: We’ll look at direct marketing
and marketing strategies.
• Look at more efficient way of going to market.
• Just-in-time (JIT) manufacturing.
• VAR’s (Value-added resellers), solutions for
vertical markets like banking, manufacturing
and retailing.
 Introduction

• The Future: The power of laptops

became compatible with desktops,
because of design, manufacturing
and usage.

• Added: Printers, Servers, Projectors, TV’s,

Handhelds, Software, Peripherals, Storage,
Networking, Workstations and more.
 SWOT Analysis
Business to Consumer Business to Business
Strengths Opportunities Strengths Opportunities
Customization Server Market
Customization Server Market
Price International strategy
Price Internationalstrategy
Customer Focused Additional markets
Customer Focused Product extensions
Technical Knowledge Product extensions
Technical Knowledge
Market Diversification Strategic partnerships
Market
Diversification Strong
Brand/Positioning
Strong
Brand/Positioning Media Savvy

Media Savvy Direct Marketing

Model
Direct Marketing
Model Non-myopic strategy

Non-myopic strategy

Technology Market Competition across

Tangibility Competition across markets
Inventory
TechnologyMarket markets
Commodity pricing
Commoditization Commodity pricing
(shrinking margins)
Inventory (shrinking margins)
Complexity of Mgmt.
Complexity of Mgmt.
Growth exceeding
Growth exceeding productivity
productivity

Weaknesses Threats Weaknesses Threats

 Case Questions
1. What impresses you about this company?
2. What is your assessment of the job Michael Dell has
done, as CEO? Senior management?
3. How did Dell segment its customers? What types of
customers? What were they like?
4. Who’s the competition for “transaction” customers?
5. Who’s the competition of the other segmented
customer?
6. What are the advantages of this direct marketing and
direct manufacturing model?
7. With its past distribution agreements with Staples,
CompUSA, and Sam’s Clubs, why did Dell have a
problem with the retail entry?
 Wrap Up: Now and Then
• Avoiding dealers means less mark-ups, less
overhead and delivers lower prices to the
customers for DELL.
• DELL: Number One in PC Sales
• DELL is one of the Most Admired Companies
Fortune’s Annual issue
• In 2003, generated 80% of profits from sales to
businesses.
• With one week of parts on hand, DELL turns over
its inventory 52 times a year. Compaq and HP turn
over is 13.5 and 9.8.
 Summary

• Three Golden Rules of DELL:

1. Disdain inventory
2. Always listen to the customer
3. Never sell indirect.
 Sales Organization Concepts

Specialization
The degree to which individuals perform some of the required
tasks to the exclusion of others. Individuals can become
experts on certain tasks, leading to better performance for the
entire organization.

Centralization
The degree two which important decisions and tasks performed
at higher levels in the management hierarchy. Centralized
structures place authority and responsibility at higher
management levels.
 Sales Force Specialization Continuum

Generalists Specialists
Some specialization
All selling activities Certain selling
of selling activities,
and all products to activities for certain
products, and/or
all customers products for certain
customers
customers
 Concepts of Sales Organisation
• A sales organisation assists the sales manager to
carry out needed tasks efficiently and effectively to
achieve results
• The basic concepts of the sales organisation are:
• Degree of centralisation
• Degree of specialisation
• Line or staff positions
• Market orientation
• Effective co-ordination
 Basic Types of Sales Organisations
Sales organisations are generally classified into four
basic types:
• Line Organisation
• Line and staff organisation
• Functional organisation
• Horizontal organisation
We shall discuss main characteristics, advantages, and
disadvantages of each type of sales organisation
 Line Organisation
Head
Marketing

Sales
Manager

Area Sales Area Sales

Area Sales Area Sales
Manager3 Manager4
Manager1 Manager2

salespeople salespeople salespeople salespeople

Characteristics: All managers have line authority to direct and control

subordinates. Used in small firms / departments
Advantages: Simple organisation, clear authority, quick decisions, low cost
Disadvantages: No support to line managers from subordinates who have
specialised knowledge / skills. Less time for planning / analysis
 Line and Staff Organisation
Head-Marketing

Marketing Research Promotional Customer Service

Sales Manager
Manager Manager Manager

Area Sales Area Sales Area Sales

Manager-1 Manager-1 Manager-1

Salespeople Salespeople Salespeople

Characteristics: Specialist staff managers are available for senior marketing /

sales managers. Staff managers’ role is to assist / advise line managers. Used in
medium and large size organisations
Advantages: Better marketing decisions, superior sales performance
Disadvantages: High cost and coordination, slower decision making, conflict may
arise if staff managers’ role is not clear
 Functional Organisation
Head-Marketing

Marketing Research Promotional Customer Service

Sales Manager
Manager Manager Manager

Area Sales Manager #4

Salespeople

Characteristics: Each functional specialist has line responsibility over

salespeople. Used by a large firm with many products / market segments,
minimising line authority to functional managers
Advantages: Qualified specialists guide salesforce, simple to administer
Disadvantage: confusion due to more managers giving orders to salesforce
 Specialisation within Sales Organisation
• Needed to increase effectiveness of salesforce
• Done by expanding basic sales organisation
• Basis of specialisation
• Geography
• Type of product
• Market
• Combination of above
• Criteria for selection – (1) nature of product, (2)
salesforce abilities, (3) demands of selling job, (4)
customer and market facts
 Geographic Specialisation
Head-Marketing

Marketing Research General Sales Customer Service

Manager Manager Promotion Manager
Manager

Branch Sales Branch Sales Branch Sales Branch Sales

Manager-1 Manager-2 Manager-3 Manager-4

Salespeople Salespeople Salespeople Salespeople

Characteristics: salespeople, assigned geographic areas, are responsible for all

selling activities to all customers within assigned areas. Branch sales managers
adjust marketing plan to local needs
Advantages: Better market coverage and customer service, more control over
salesforce, quick response to local conditions & competition
Disadvantages: Limited specialisation of marketing tasks. Hence, it is combined
with product / market sales organisation
 Product Specialisation
• Used when the company has many products and / or brands
• Two types of product specialisation
(x). Sales organisation with product specialised salesforce
(y). Sales organisation with product managers as staff specialists

Head-Marketing

Marketing Research General Promotion Sales Training

Manager Sales Manager Manager Manager

Area Sales Managers – Area Sales Managers –

Product Group ‘A’ Product Group ‘B’

Salespeople – Salespeople –
Product Gr. ‘A’ Product Gr. ‘B’

Fig. ‘x’ Sales Organisation with product specialised salesforce

 Product Specialisation (Continued)
Head-Marketing

Marketing Research Promotion General Product Manager Product Manager

Manager Manager Sales Manager Product Gr. ‘A’ Product Gr. ‘B’

Area Sales
Managers

Salespeople

Fig. ‘y’ Sales Organisation with Product Managers as Staff Specialists

In fig. ‘x’: Characteristics: Salespeople in each product group sell only the products in that
group
Advantage: Each product gets specialised attention from the salesforce
Disadvantage: Sometimes, more salespeople contact the same customer, resulting in
customer dissatisfaction and higher cost
In fig. ‘y’: Characteristics: Each product manager plans and implements marketing plan, for
a product group
Advantage: Corrects the problem of duplication calls on a customer by salespeople
Disadvantage: Lack of product specialisation by salespeople
 Market Specialisation
General Sales
Manager

Sales Manager- Sales Manager- Sales Manager-

Sales Manager-
International- Government Consumer Markets
Commercial
Markets

Area Sales Mgrs Area Sales Manager- Area Sales Manager- Area Sales Mgrs-
International Commercial Government Consumer Markets

Sales Executives Salespeople Salespeople Salespeople

• Characteristics: Desirable when customers are classified by type, user industry, or

channel. Salespeople carry out all activities for all products only for specific
customer groups
• Advantages: Meets needs of specific customer groups, implements customer-
centred philosophy of the company
• Disadvantages: Geographic duplication, high cost
 Combination Sales Organisation
Director – Sales
& Marketing

General Manager General Manager General Manager General Manager

Sales - North Sales - East Sales - West Sales - South

Regional Sales Regional Sales Regional Sales

Mgr. – Govt. Mgr. - Commercial Mgr. - Dealers

Salespeople Salespeople Salespeople

• Characteristics: Many firms use some combination of specialisation

organisations, called hybrid or combination sales organisation, with a view
to minimise disadvantages and maximise advantages of specialisation
organisations
• Figure above shows combination of geographic and market specialisations
 Alternatives for Major Accounts

• Major accounts / customers are called by various names

like key accounts, corporate accounts, house accounts
• They make up a large share of a firm’s sales volume and
profits
• Firms use the following alternative approaches to deal
effectively with them
• Create a position of major / national account manager
• Use existing territory sales managers
• Create a separate division
• Create a separate salesforce
 Size of the Salesforce

• How many salespeople needed (or salesforce size) to

achieve a firm’s sales and profit objectives is a key
decision
• Methods available to decide optimum salesforce size
are as follows:
• Workload
• Sales potential (or breakdown)
• Incremental
• We shall discuss these methods briefly:
 Workload Method

• Assumption: All salespeople have equal workload

• Steps involved to calculate salesforce size are:
1) Classify customers as per their sales potential
2) Decide time per sales call and call frequencies for each class
of customers
3) Calculate total market workload = (1) x (2) in hours
4) Decide total work time available per salesperson
5) Divide total work time available by different activities per
salesperson in hours
6) Calculate total number of salespeople needed
total market workload (3)

total selling time available per salesperson (5)
 Workload Method (Continued)
• Advantages: simple method, conceptually sound, used for all types of
selling situations
• Disadvantages: Neglects sales productivity & salesforce turnover
Sales Potential / Breakdown Method
• The formula used is: N  PS
(1  T ,) where

N=Number of salespeople needed, or salesforce size

S=Annual sales forecast for the company in value (Rs. Million)
P=Estimated productivity of the average salesperson in sales (Rs.
Million)
T=Estimated percentage of annual salesforce turnover
• Advantages: Simple and straight forward
• Disadvantages: Conceptually weak; lead time needed for a new
salesperson to reach average productivity
 Incremental Method

• It is based on marginal analysis theory of economics

• Basic concept: Net profits will increase when additional
salespeople are added, if the incremental sales revenues
exceed the incremental costs
• Merit: Conceptually accurate, as it quantifies
relationships between salesforce size, sales, costs, profits
• Demerit: Can not be used if historical data on sales and
costs are not available
 Salesforce Staffing
• It is one of the most challenging and important
responsibilities / activities of sales management
• Salesforce Staffing Process includes following stages:
• Planning
• Recruiting
• Selecting
• Hiring
• Socialisation
 Planning Stage
• It consists of three steps:
• Establish responsibility for staffing process
• Decide number of salespeople needed
• Outline the type of salespeople needed
• Establish responsibility for staffing process
• Company management decides responsibilities for various
stages / activities of staffing process
• Generally in a medium / large size company, middle and
senior levels H.R. and sales managers are responsible
• Proper coordination needed between sales, marketing,
and HR executives
 Planning Stage
Decide the number of salespeople needed
• Steps followed by each territory sales manager to plan
requirement of sales people:
1) Decide optimum salesforce size (using methods discussed
earlier)
2) Add number of promotions, retirements, transfers out,
terminations, resignations expected from existing salespeople
3) Subtract expected transfers into the territory and existing
salesforce
4) Make a total of new salespersons needed
• Territory sales managers submit their requirements to national /
general sales manager, who calculates the total number of new
salespersons to be hired
 Outline Type of Salespeople Needed
The steps involved in the process are:
• Conducting a job analysis
• Preparing a job description
• Developing job qualifications / specifications
Conducting a Job Analysis
• It is done by a person from sales / H. R. department, or a
consultant. It consists of two tasks:
(1) Analyse environment in which the salesperson would
work – E.G. nature of customers, competitors, products.
(2) Determine duties and responsibilities of the
salesperson. Obtain information from sales managers,
customers, etc.
 Preparing a Job Description

• It is a written document developed from the job analysis

• The detailed job description is a useful tool for recruiting,
selecting, training, compensating, and evaluating
salespeople
• Some of the points it generally covers are:
• Job title, reporting relationship, types of products /
services sold, types of customers, duties and
responsibilities, location and geographic area to be
covered
 Developing Job Qualifications / Specifications
• These are generally based on job description
• Job specifications / qualifications include education, sales
experience, skills, and personality traits
• Many studies done, but no generally accepted job
qualifications for selecting salespeople, due to many types of
sales jobs
• Some methods used for developing job specifications are as
under:
• Study job description. Useful for a new company
• Analyse personal histories of salespersons
• Ask customers
 Recruiting Salesforce
• Recruiting include activities to get individuals who will apply
for the job
• The general purpose of recruitment is to get enough qualified
candidates, to enable company select the right persons
• H.R. and sales managers must update information on
government employment regulations
• Recruiting stage / process includes following activities:
• Finding the sources of sales recruits
• Evaluating and selecting recruiting sources
• Contacting candidates through the selected source
 Finding the Sources of Sales Recruits
• For identifying prospective candidates, firms use internal and
external sources. They include:

Internal Sources External Sources

• Employee referral
programmes
• Current employees
• Promotions and transfers
• Advertisements in
newspapers and journals /
magazines
• The Internet (job sites)
• Educational institutions
• Employment agencies
• Job fairs
• Other companies
The Recruiting Process
 Inside Recruiting

• Advantages:
– Company employees have established performance
records and present themselves as a known entity
– Recruits from inside require less orientation and
training due to familiarity with current products, policies
and operations
– Recruiting within bolsters company morale because
employees see opportunities for advancement

• Facilitating internal recruiting starts with fully informing

human resources of sales staff needs
Selection Tools and Procedures

• Application blanks
• Personal interviews
• Reference checks
• Physical examinations
• Psychological tests
– intelligence
– personality
– aptitude/skills
 Proposed Model of
Sales Force Socialization
Recruiting/Selection Training Person Job
Objectives Objectives Outcomes Outcomes

Initiation to Task Specific Job

Realism
Task Self -Esteem Satisfaction

Job
Involvement/
Commitment

Resolution of
Role Conflicting
Congruence Performance
Definition Demands at Work
 Activities Involved in Managing
the Human Resources of a Sales Force
 Staffing: Having the Right People to Sell,
cont…
• Job specifications for successful salespeople
– Education
– Personality
– Experience
– Physical attributes
 Selected Characteristics of Successful
Salespeople―Which are Most Important?
 Major Steps in Sales Personnel Selection
Process
Not all companies
take every step
 Evaluating and selecting Recruiting Sources
• Recruiting sources are evaluated based on the database built
over number of years
• Evaluating factors are:
• Performance rating of salespeople, after 2 years working
• Percentage of salespeople retained, after 2 years working
• Total cost of recruiting
• Selecting most effective source of recruiting at least cost
• For a new company, selection depends on cost
• Contacting candidates through the selected source is done by
H. R. department
 Selecting Salesforce

• Selection process consists of seven major selection steps /

tools
• Companies differ in using selection tools, depending on
expenditure budget and time available
• Major selection tools / steps are:
• Screening resumes
• Application blank
• Initial interview
• Intensive interview
• Testing
• Reference check
• Physical examination
 Screening Resumes
• It is done when the company receives many resumes
• This step / tool not required, if somebody else like
employment agency does initial screening
• Initial screening of resumes are done by comparing with job
specifications
Application Blank
• Widely used, it is a methodical way of collecting relevant
information from the applicant
• Advantages of using application blank (also called “formal
application form”) are:
(1) Easy comparison of many applicants
(2) Useful for asking question during interview sessions
 Interviews
• Widely used selection tool
• A good predictor of the candidate’s performance
• Initial interviews are used for screening candidates
• Intensive interviews are conducted to get indepth view of
candidates
• Interview structure / type of interviews:
• Structured / patterned / guided interviews
• Unstructured / non-directed / informal interviews
• Semi-structured interviews
• Behaviour and performance based interviews
• Stress interviews
• Purpose is to decide a candidate’s fitness for a job
 Testing
• Many firms use tests as a selection tool
• Purpose of testing: To find whether applicants have traits /
characteristics that lead to success in sales job
• Type of selection tests:
• Aptitude tests measure ability for selling and learning
• Intelligence tests find out mental intelligence or intelligence
quotient (IQ)
• Interest tests find out level of interest in a sales career
• Knowledge tests measure knowledge of products, markets, etc
• Personality tests find out attitude or traits like empathy, self-
confidence
• Tests must have reliability and validity
• Tests should be one of the selection tools and not the only tool
 Reference Checks
• They are important due to possibilities of resume frauds and false
personal information
• They are done by letters / e-mails, telephones, or personal visits
• Instead of candidate’s references, previous employers / customers
to be included for reference checks

Physical Examination
• Objective is to find a physical problem that may prevent job
performance of an applicant
• Most companies want their prospective employees to undergo
physical examination
• Increasing number of firms ask applicant to complete the health
information form without seeing a medical doctor
 Hiring Stage
• After completing selection process, a list of candidates to be hired is
made
• In hiring stage, two activities are performed:
(1) The company making the job offer
(2) Persuading the applicant to accept it

Socialisation Stage
• It is the process through which new salespeople learn values,
norms, attitudes, and behaviour of people working in the firm
• Socialisation process starts before the new salesperson accepts the
job offer and continues until the person is assimilated into the
company culture
• Assimilation is the second stage of socialisation process
• Companies have this process, in order to retain new salespeople
 Definition
• Sales Force Management
– The analysis, planning, implementation, and
control of sales force activities. It includes
setting and designing sales force strategy;
and recruiting, selecting, training,
supervising, compensating, and evaluating
the firm’s salespeople.
 Sales Training
• Training supplements experience
• Higher performance can be achieved earlier

ACMEE process – Aim, Content, Method, Execution,

Evaluation
• Initial Training * Continuous Training
Methods – lectures, one-to-one, role plays, demo,
case methods, discussions, simulations, on the job,
distance learning, sales manuals.
* In house * External Source
 Broad objectives of Sales Training
• Increase productivity
• Improve morale
• Lower turnover
• Improve customer relation
• New Product Launch
• Shift in distribution strategy
• Implementation of new process / technology
 Determine the objectives
• Specific
• Realistic
• Measurable
These add to the credibility of a sales training
program.
 Content of Training Programme
• Content for new sales trainees is broader. It includes:
• Company knowledge
• Product knowledge
• Customer knowledge
• Competitor knowledge
• Selling skills / sales techniques
• Examples of specific content for experienced salespersons
are:
• New product knowledge
• Introduce change in sales organisation
• Negotiating skills
• Content depends on the aims of training programme
 Develop and Implement the Training
Program
• Content
– Internally developed
– Outside experts
• Training methods:
– Discussion
– Role playing
– On-the-job training
Traditional Methods Categories

Presentation Methods

Hands-on Methods

Group Building Methods

 Presentation Methods
• Presentation methods refer to methods in which
trainees are passive recipients of information.
• This information may include:
– Facts or information
– Processes
– Problem – solving methods
• Presentation methods include:
– Lectures
– Audio-visual techniques
Presentation Methods: Lecture

• Lecture involves the trainer communicating

through spoken words what she wants the
trainees to learn.

• The communication of learned capabilities

is primarily one-way – from the trainer to
the audience.
Lecture (continued)
• One of the least expensive, least time-
consuming ways to present a large amount
of information efficiently in an organized
manner.

• Useful because it is easily employed with

large groups of trainees.
 Variations of the Lecture Method
Standard Lecture

Student Presentations
Team Teaching

Panels Guest Speakers

Presentation Methods:
Audio-Visual Techniques
• Audio-visual instruction includes:
– Overheads
– Slides
– Video
• It has been used for improving:
– Communication skills
– Interviewing skills
– Customer-service skills
– Illustrating how procedures should be followed
 Hands-on Methods
• Hands-on methods refer to training methods
that require the trainee to be actively involved
in learning.
• These methods include:
– On-the-job training
– Simulations
– Case studies
– Business games
– Role plays
– Behavior modeling
Hands-on Methods: On-the-Job Training

• On-the-job training (OJT) refers to new or

inexperienced employees learning through
observing peers or managers performing the
job and trying to imitate their behavior.
• OJT includes:
– Apprenticeships
– Self-directed learning programs
On-the-Job Training (continued)

• OJT can be useful for:

– Training newly hired employees
– Upgrading experienced employees’ skills
when new technology is introduced
– Cross-training employees within a
department or work unit
– Orienting transferred or promoted
employees to their new jobs
Self-Directed Learning (continued)
Advantages
• Learn at own pace
• Feedback about
learning performance
• Fewer trainers needed
• Consistent materials
• Multiple sites easier
• Fits employee shifts and
schedules
Disadvantages
• Trainees must be
motivated to learn on
their own
• Higher development
costs
• Higher development
time
OJT Programs: Apprenticeship

• Work-study training method with both on-the-

job and classroom training.
• To qualify as a registered apprenticeship
program under state or federal regulations:
– 144 hours of classroom instruction
– 2000 hours (or one year) of OJT experience
• Can be sponsored by companies or unions.
• Most programs involve skilled trades.
Apprenticeship (continued)
Advantages Disadvantages
• Earn pay while learning • Limited access for
• Effective learning about minorities and women
“why and how” • No guarantee of full-
• Full-time employment time employment
at completion • Training results in
narrow focus expertise
Hands-on Methods: Simulations

• Represents a real-life situation.

• Trainees’ decisions result in outcomes that
mirror what would happen if on the job.
• Used to teach:
– Production and process skills
– Management and interpersonal skills
Hand-on Methods: Case Studies
• Description about how employees or an
organization dealt with a difficult situation.
• Trainees are required to:
– Analyze and critique actions taken
– Indicate the appropriate actions
– Suggest what might have been done differently
• Major assumption of this approach is that
employees are most likely to recall and use
knowledge and skills learned through a
process of discovery.
Hands-on Methods: Role Plays

• Trainees act out characters assigned to them.

• Information regarding the situation is
provided to the trainees.
• Focus on interpersonal responses.
• Outcomes depend on the emotional (and
subjective) reactions of the other trainees.
• The more meaningful the exercise, the higher
the level of participant focus and intensity.
Hands-on Methods: Behavior Modeling
• Involves presenting trainees with a model who
demonstrates key behaviors to replicate.
• Provides trainees opportunity to practice the key
behaviors.
• Based on the principles of social learning theory.
• More appropriate for learning skills and behaviors
than factual information.
• Effective for teaching interpersonal and computer
skills.
 Group Building Methods
• Group building methods refer to training
methods designed to improve team or group
effectiveness.
• Training directed at improving trainees’ skills as
well as team effectiveness.
• Group building methods involve trainees:
– Sharing ideas and experiences
– Building group identity
– Understanding interpersonal dynamics
– Learning their strengths and weaknesses and of
their co-workers.
Group Building Methods (continued)
• Group techniques focus on helping teams
increase their skills for effective teamwork.
• Group building methods include:
– Adventure learning
– Team training
– Action learning
Group Building Methods:
Adventure Learning
• Focuses on the development of teamwork and
leadership skills using structured outdoor
activities.
• Also known as wilderness training and outdoor
training.
• Best suited for developing skills related to group
effectiveness such as:
– Self-awareness
– Problem solving
– Conflict management
– Risk taking
Adventure Learning (continued)
• To be successful:
– Exercises should be related to the types of
skills that participants are expected to develop.
– After the exercises, a skilled facilitator should
lead a discussion about
• what happened in the exercise
• what was learned
• how events in the exercise relate to job situation
• how to apply what was learned on the job
Group Building Methods:
Team Training
• Involves coordinating the performance of
individuals who work together to achieve a
common goal.
• Teams that are effectively trained develop
procedures to identify and resolve errors,
coordinate information gathering, and
reinforce each other.
Components of Team Performance

Team Performance

Behavior Knowledge Attitude

Main Elements of the Structure of Team Training
Tools Methods
Team Task Analysis Information-Based
Performance Measurement Demonstration-Based Video
Task Simulation and Guided Practice
Exercises
Feedback Role Play
Principles

Strategies
Cross-Training
Coordination Training
Team Leader Training

Team Training Objectives

Content
Knowledge
Skills
Attitudes
Group Building Methods: Action Learning

• Involves giving teams or work groups:

– an actual problem,
– having them work on solving it,
– committing to an action plan, and
– holding them accountable for carrying out the
plan.
Action Learning (continued)

• Several types of problems are used including

how to:
– Change the business
– Better utilize technology
– Remove barriers between the customer and
company
– Develop global leaders
 Choosing a Training Method
1. Identify the type of learning outcome that
you want training to influence.
2. Consider the extent to which the learning
method facilitates learning and transfer of
training.
3. Evaluate the costs related to development
and use of the method.
4. Consider the effectiveness of the training
method.
 How to evaluate training?
• Evaluation Info required Method
• Reaction Attitudinal Questionnaires
Comments
Interviews
• Learning Concepts/use Before-n-after
• Behavior On-the-job beh. Beh. Ratings,
Before –n-after
• Results Changes in sales, Cost-benefit
productivity, others analysis
 Evaluation of Sales Training Programme
• It is done to improve training design and implementation, and to find if expenditure was worthwhile
Framework for sales training evaluation:

Outcomes to measure What to measure How to measure When to measure

• Reactions / • Training objective • Questionnaires • After the training
Perceptions of • Was training •interviews
participants worthwhile?
• Learning – • Knowledge, skills, • Tests • After training
knowledge, skills, attitudes • Interviews • Before & after –
attitudes learnt training
• Behavioural change • Trainees’ change of • Self-assessment by • After training, over a
behaviour trainees period of one year
• Observation by
supervisors /
customers
• Results – • Sales, Profits • Company data • After training,
Performance; Benefits • Customer • Management Quarterly, Yearly
more than cost? satisfaction judgement
• Market survey
 Recent Trends in Sales Training Evaluation

• More pressure to show concrete evidence

• If sales training is an investment, the need is
to document the benefits to calculate ROI
• Growing accountability
• Use of control groups is increasing
• Problems in equating sales increase with sales
training.