1 A Summer trainin g Report on Training undertaked at Hindustan Machine tools, ltd Inventory &Material Control Submitted in partial fulfillment for the award of degree ofMBA Submitted by: Submitted to: Brijesh Dadhich MBA Part 2 nd 2009-2011 MANAGEMENT AND COMMERCE INSTITUTE OF GLOBAL SYNERGY, AJMER(Approved by AICTE, Affiliated to RTU Kota)
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Effective management of the sales force is needed to implement the company¶s chosen Sales
force design and achieve its sales objectives. Sales force management covers the steps in
recruiting and selecting, training, supervising, motivating, and evaluating representatives. Salesforce strength and qualification significantly affect both the ability to provide competitive service
level and the economic of the sales force. Each company needs to define the specific objectives
its sales force will achieve. A direct (company) sales force consists of full- or part-time paid
employees who work exclusively for the company. The sales force strategy has implications for
the sales force structure. Established companies need to revise their sales force structure as
market and Economic conditions change. The importance of sales reps¶ knowing their products,
together with the development of product divisions and product management, has led many
companies to structure their sales forces along product lines. Many companies are shrinking their
sales forces because the sales department is costly to maintain. Recruiting and selecting a new
sales force is an important aspect of the sales manager¶s job. The basic objective of sales force
planning is to balance supply and demand. The sales manager should prepare the job description
before recruiting the sales force.
New employees require detailed instruction and training for effective performance on the job.
Employees chose for higher levels jobs also training. Training employee can make the
achievement of organisation goals possible Training improves employee¶s performance the basic
human need is to possess job skills. In order to achieve the training objectives, an appropriate
training process is necessary. A training policy represents the commitment of to management to
employee training. Training goals should be fully integrated with the organization¶s human
resource training needs. Compensation plans for the sales force are designed to achieve several
objectives. A sales manager adopt different methods to motivate is sales force. It is helpful in
creating and maintaining a satisfactory level of performance by employees. Performance
appraisal is a useful indicator of training needs. There are ³effort-performance´ and
³Performance reward´ linkages to motivate an employee. Sales force is regularly assigned
particular territories. The sales manager is the most important person in a sales organisation.
Training of sales representatives is essential to make them skilled.
The key to sales force organisation is the right level of aggregation against product lines and
geographical coverage. The solution is not obvious. Even market leaders constantly experiment
with different approaches. For example, at one time BPL sold its consumer electronics and
refrigerator lines through the same sales force but has separated them recently.
Strength and Qualification
Sales force strength and qualification significantly affect both the ability to provide
competitive service level and the economic of the sales force. A successful approach takes
market requirements, competitive benchmarks as well as target efficiency parameters into
account. In order to be helpful, these have to be analyzed in considerable depth. For example a
major industrial company realized that its main competitor not only had 60% more sales peopleon the ground but had also achieved a 25% higher turnover per sales person .what seemed to be a
contradiction at first war explained by an efficient back office organisation which gave each
sales person more time for intensive interaction with the customer and allowed for deeper service
relationships.
Compensation and Incentives system
Compensation and incentives have a significant impact on the morale of the sales force and help
in retaining successful. Incentives allow-average compensation for the most successful sales
people while keeping overall compensation levels in check. An effective incentive system sets
aggressive but achievable targets, reflecting business priorities while being simple to administer
and easy to understand. A major stumbling block for the implementation of incentive system is
often the quality of the forecasting system.
In summary, sales force management holds the key for competitive success in India. The
imperative are
Tailor the approach to key segments. Start with differentiation for urban/rural markets,
but go further and adjust for sophistication levels of customers.
Provide the right strength and qualification levels at your frontline interaction with the
Each company needs to define the specific objectives its sales force will achieve. Increasingly,
companies are setting objectives for sales reps based not only on sales volume and profitability
targets, but also on their ability to create customer satisfaction. To implement the firm¶s sales
objectives, a common strategy is for sales representatives to act as ³account managers,´
arranging fruitful contact among various people in the buying and selling organisation. Selling
increasingly calls for teamwork requiring the support of other personnel, such as top
management, especially when national accounts or major sales are at stake; technical people,who supply technical information and service to the customer before, during, or after product
purchase; customer service representatives, who provide installation, maintenance, and other
services; and an office staff, consisting of sales analysts, order expediters, and administrative
personnel .Once the company decides on objectives and strategy, it can use either a direct or a
contractual sales force. A direct (company) sales force consists of full- or part-time paid
employees who work exclusively for the company. This sales force includes inside sales
personnel , who conduct business from the office using the telephone, fax, and email, and receive
visits from prospective buyers, and field sales personnel , who travel and visit customers. A
contractual sales force consists of manufacturers¶ reps, sales agents, and brokers, who are paid a
Selection, as the name implies, involves picking and hiring a few people from the total number
of candidates applying for the sales job. Selection is done by comparing the requirements of a
job with the applicant¶s qualifications. The selection includes pertinent information on a recruit¶s
mental abilities, physical characteristics, experience and personal background. To collect that
information, firms may incorporate the use of assessment centers and several selection tools
including applications, resumes, interviews, testing and physical examination. Selection is a
part of the recruitment function. To select means to choose. Selection is the process of choosing
people by obtaining and assessing information about the applicants with a view to matching
these with the job recruitments. It involves a careful screening and testing of candidates whohave put in their applications for any job in the enterprise. It is the process of choosing the most
suitable persons out of all the applicants. The purpose of selection is to pick up the right person
for every job.
In the words of Keith Davis: ³Selection is the process by which an organisation choose from
a list of screened applicants, the person or persons who best meet the selection criteria for the
position available.´
Characteristics of selection
1). It is a process of picking out the best suited men.
2). Selection is like a sequence of hurdles. Successful candidates leap over them and arrive at the
finish line; the unsuccessful do not.
3). Selection begins only after an adequate number of applications have been secured.
4). It follows a standard pattern, beginning with an initial screening interview and concluding
The selection procedure starts immediately after recruitment. It is a process of eliminating those
candidates who appear unpromising. It consists of a series of steps. It is not an easy process. It
requires the study of job description and application blank. The task of selection is to match theworth and merits of applicants with the requirements of the job at every stage. A wrong
selection means a heavy cost to an organisation in terms of money, time and efforts wasted.
The following are some common steps in any selection process:
1). Reception of applicants: Various job seekers send their applications to the employment
office & many personally come to deposit their applications. The selection process starts when
the applicants come to the employment office of the company. The receptionist¶s attitude
towards the applicants must be warming and positive.
2). Scrutiny of applications: all applications received are scrutinised by the personnel
department in order to eliminate those applicants who do not fulfill required qualifications. For
example ± where the minimum qualifications for the job are m.com, a person possessing B.A.
degree will be out rightly rejected.
3). Preliminary interview: It is done to limit the costs of selection. Its purpose is to
eliminate the unqualified or unsuitable candidates. It is a sorting process in which necessary
information is elicited from the candidates about their education, skills, experience, salary
expected, edict is generally brief. It is carried out by a junior manager across the counter or at the
reception office. Through this interview candidate is permitted for screening. It also helps to
decide whether it is worthwhile for a candidate to fill up the application form.
4). Employment tests: Selection tests are becoming increasingly popular these days. Tests
are based on the assumption that persons differ in intelligence, knowledge, skill, and motivation.
There are various types of test used for personnel selection:
i. Intelligence tests: Its aim is to test the mental capacity of a person with respect to
reasoning, word fluency, numbers, memory, comprehension.
³Give a man a fish, he will eat it. Train a man to fish, he will feed his family.´ This saying
highlights the importance of training everywhere. Training employee can make the achievement
of organisation goals possible. A well planned training programme can provide the following
advantage:
1). Higher productivity: Training improves employee¶s performance. Trained employees
use better methods of work, sound knowledge and good awareness of his goals.
2). Better quality of work : Training helps in standardizing the methods of work and right
use of tools. It also results in elimination of possible mistakes.
3). Less learning time and cost: The learning time and costs are reduced considerably by
training. They need not waste their efforts in learning through trial and error.4). Less accident: It also helps in reducing accidents. Trained workers follow safety rules and
adopt right work methods.
5). High morale: The basic human need is to possess job skills. Training makes an
employee¶s work meaningful. It gives them security and ego satisfaction. Training reduces
In order to achieve the training objectives, an appropriate training process is necessary.
1). Organizational objectives: An organisation must first assess its objectives. What
business are we in? What product do we wish to provide to customers? These questions will
decide what skills, knowledge, abilities and other personal attributes are necessary for
employees.
2). Training policy: A training policy represents the commitment of to management to
employee training. A training policy is required to guide the design and implementation of
training programme.
3). Training needs assessment: the assessment of training is perhaps the most important
step in the process. Assessment directs the whole training programme.
4). Selection of trainees: It is necessary to decide who is to be a trained new or old
employee; workers supervisors or managers. The methods to be used will depend upon the type
of persons to be trained. It is also necessary to create a desire for learning among trainees.
5). Training goals: Training goals should be fully integrated with the organization¶s human
resource training needs.
6). preparing the trainers:
The success of training depends to a great extent upon theinstructors or resource persons. The trainer must know both the job contents and how to teach
them.
7). Performance tryout: The trainee is asked questions in order to ensure that he really
knows and understands the job. He is also asked to do the job several times. His mistakes are
corrected. The trainee, through repetitive practice, acquires more skill.
8). Overall evaluation: Without monitoring the training process, it is possible that a well
designed training programme may be conducted improperly, or otherwise fails to accomplish itsgoals. At the bend of training, formal evaluation of the training programme is also necessary.
Evaluation involves a comparison of what was accomplished during the training the programme
with what was intended. The training process can also be understood through the systematic
4). Confidential report: This is a traditional form of Performance appraisal, found in most
government organizations. IT is a report prepared by the employee¶s immediate superior. It
involves a lot of subjectively because it is a based on impressions rather than on data. NO feed back is provided to the employee being appraised. This method focus on evaluating rather than
developing the employee.
5). Group appraisal method: Under this method, a group of evaluators assesses
employees. This group consists of the immediate supervisors, head of the department and a
personnel expert. This group determines the standards of performance for the job, measures
actual performance of employees, analysis the causes of poor performance and suggest for
improvements.
The process of Performance appraisal
1). Establishing performances standards: The appraisal process begins with the
establishment of performances standards. These are developed with the job analysis and job
descriptions. These should be clear and objective to understand. These standards should with the
supervisors. These should be indicated on the appraisal form. Performances standards are
commonly based on individuals traits, cost related outcomes and behavioural criteria.
Performances standards will depend upon the objectives of the appraisal.
2). Communicating standards: Once performance standards are established, it is
necessary to communicate and explain these expectations to the employees. It is not the part of
employee¶s job to guess what is expected of them .The reactions of employees to the
Sales management is generally referred to as the backbone of marketing. It is overall
management of selling activities and it refers to only as specialized application of the process of
management as whole. The ultimate objective of sales management is to influence the consumersof the target market to get sales orders. Sales force is regularly assigned particular territories. The
sales manager is the most important person in a sales organisation. All activities are based on his
functions and responsibilities.
The goal of recruiting is to find and attract with the best qualified applicants recruiting
begins with identifying the sources of candidates. Recruiting can be from within the organisation
as well as from outside the organisation. The selection of the right sales force is important for the
long- term future of an organisation. It is a task which does not always receive the attention it
deserves from sales managers. The selection process begins with the evaluation of recruited
candidates which can include multiple interviews, tests a day in the field and background
investigations. Psychological testing is used by many organizations as it determines intelligence,
aptitude, personality, knowledge and interests. After the physical and all other screening tools
have been implemented, the organisation selects the best candidate.
After selection, sales representatives should be given formal training which includes
planned programme complete with schedules, lesson plans, visuals aids, other teaching devices
and systematic reviews and evaluation. Training of sales representatives is essential to make
them skilled.
Motivation of the sales force is important because he has a monotonous job to perform
and he gets fed up very soon and wants a change. Through motivation, the salesman can be
stimulated to action so that he gets interested in the job and performs his duties to the best of his
capability. Motivation of sales force, which forms the other aspect of this unit, is among the
most important responsibilities of a sales manager. Behavioural scientists have classified
motivational needs. According to them each individuals is a different entity and hence, to
understand what would individually motivate the salespersons the nature, and needs the
individual have to be understood.
The sales manager must understand and conduct a proper performance appraisal of his
salespersons as it helps in motivation, cost reduction and reduces role ambiguity. The sales