Sales Staff

1. What are the FOUR (4) basic forms of organizational structure? Briefly describe each.
2. What is delegation? Identify FOUR (4) reasons that managers have trouble delegating.
3. Briefly describe the FIVE (5) basic forms of departmentalization.

APPLICATION EXERCISE

TIME FOR THE AX?

The Situation

You are the sales manager for a well-established medical equipment company. You’ve been with the company a long time and, generally, you really enjoy your job. The company’s new president is interested in proving herself and has set a goal of 10 percent sales growth per year. Each sales representative has a quota that they are expected to meet. Those who exceed their quota will receive a bonus, and those who fall short of their quota will be fired or placed on probation.

The Dilemma

Your sales staff have worked really hard over the past year to meet their new quotas. Six of the eight representatives met their quotas and received bonuses. However, two others have fallen below. Jane fell 2 percent short of her quota and you’re not surprised. She’s not hard working and often leaves work early to play golf. Bill, on the other hand, has been with the company a long time and is widely respected for his work ethic. However, he’s struggling to care for his sick mother and fell 7 percent below his quota. You know that control is an important part of being a manager, but you’re unsure what to do. The company president has asked to meet with you tomorrow to discuss the situation.

QUESTIONS TO ADDRESS

1. Which management functions are involved in setting goals and measuring performance?
2. What are the ethical issues in this situation?
3. What do you think most managers would do in this situation?
4. What would you do?