CD CO O bJ / g gswrj assMBg The Service Bulletin of the Bureau of Personnel Research H. G. KENAGY, Editor Vol. 4 NOVEMBER, 1921 No. 2 The Bureau exists to serve business organizations in the SELECTION TRAINING and SUPERVISION of PERSONNEL In this Issue: THE MANAGEMENT OF A BRANCH SALES AGENCY: An Analysis of Facts From Ten National Sales Organizations By H. W. McINTIRE The Division of Cooperative Research Carnegie Institute of Technology, Pittsburgh, Pa. THE MANAGEMENT OF A BRANCH SALES AGENCY An Analysis of Facts From Ten National Sales Organizations Prepared by H. ¥. Mo Intiro '/ The Bureau of Personnel Research Carnegie Institute of Technology November 1921 All rights reserved. :• • • • •♦• • •«•« *•• • • ..'.*,• FOREWORD The "job analysis" method has made a place for itself in the management of shops, factories ind offices. Very clearly has it shcrn thr.t the systematic description of a man's vork, in its fundamentals, can aid the executive in many directions. Believing that this method of studying occupations snd jobs should not be limited to the vork of the mechanic, the operative, and the office employee, Mr. Mclntire has blazed a trail for the alert sales executive, by making a comparative analysis of the work done by branch sales managers.. The number of agencies with -vhich he worked is toe limited, and the methods are too young, to justify general conclusions. But his preliminary results as presented here are at least suggestive of a fertile field of investigation ahead of us. C. S. Yoakum, Director. 524U45 TABLE OF C02!TE?JTS. Pases Introduction: Purpose of tho Investigation of Branch Sales Manager ' s Job . .... ... I. The Relation Between the Degree of a Manager's Responsibility ~nd his Working Methods 3 II. The Distribution of" I>,ch Manager's Tine . . 4 III. The Assistance "eceivod fron the Hone Office 6 IV. Methods of Hiring Salesmen 7 V. Developing Salesmen 8 1. "Breaking In" ! T ev; Men '. 8 2. Field Supervision 9 3 . lad ividua 1 Office Coherences 9 6 . Checking Da ily Reports 9 5. Supervising the Training: Program 10 VI . Stimulating Sal e snen ........... 11 VII. The Remuneration Of Salesmen 13 VTO. Sales Promotion Activities 15 1. Unique ^alas Promotion Methods of One Manager .. 15 2 . Analyzing Territory 16 3. Participating in Social Affairs of Business Men 17 6 . Ss le s Letter s 17 5 . Meeting Competition 17 6. Sales Campaigns 17 7. Local Advertising 18 IX. Direct Selling 18 X. Financial Duties 18 XI. What Are the Most Difficult Phases Of X Branch Manager ' s i' r ork? 19 XII. In What Respects Does Each Manager Have Good Methods? ... '. 20 Conclusions 22 -2- INTRODUCTION: PURPOSE CF THE ANALYSIS OF THE BRANCH MANAGER'S JOB. A well-known sales organization was in need of a manager for one of its largest branch offices. The general sales manager selected as "the logical man for the place" the successful manager of a small branch, ivho had made an exceptionally good production record and showed ability in dealing with financial matters. The promoted manager, however, proved to be a partial failure in his new job. Most of his best salesmen quit; his production record slumped. An investigation revealed the fact that he lacked ability to control and direct men. Ke had :,iade good in the smaller branoh because his salesmen were scattered over a provincial territory, so that he did not make many personal contacts with them. In the larger branch, personal leadership of a rather large force of city salesmen was neces^ sary - a task that was beyond his natural ability. The sales manager who promoted this man had not carefully determined the qualifications of a successful manager of a city branch, or he would have considered more the manager's ability to handle men, and less his financial ability. Furthermore, he was not using enough different "measuring sticks" in sizing up his branch managers. He had not made a study of the qualifications needed in the new job. There are several important reasons why the job of a branch sales manager should be systematically analyzed and described. Among these might be mentioned the following: 1. A job analysis determines the qualifications necessary for the success of branch managers, and thus leads to improved methods of selecting and promoting manrgers. 2. It places at the disposal of all managers the practical methods which certain successful managers have learned by experience, and thus furnishes the best possible means of deve l oping both the experienced ond the inexperienced m:'n ».gc rs. 3. It provides standards for measuring a manager's efficien~y. 4. It helps solve the problems of sales organization. In making a job analysis by a study of the actual work and. functions of branch managers, the investigator gets his best data from successful managers. B u t to determine in what .rays and to what degree various managers are successful requires cr.refui preliminary work. In most cases, production records furnish a good measure of a man's general ability, particularly when he has held the job for several years. But they do not throw much light on his special abilities. A good manager might have some weak spots, and a man of mediocre caliber might be exceptionally capable along certain lines. Therefore, in analyzing the job, the investigator needs many different means for judging the manager's success in such phases of Ms job as hiring salesmen,- conducting salesmen's aeetings, breaking in new men, making collections, sending out sales letters, analyzing certain territories and other activities. -3- A COMPARATIVE ANALYSIS 0? THB JOBS CF THE PITTSBURGH brakch BESSSEEB of ten a&LSS organizations . The facts reported end analyzed in the following pages were obtained through interviews with the Pittsburgh branch managers of ten prominent office specialty sales organisations* The investigation therefore has xbe advantages and the disadvantages of representing the branch Managers own observations r-nd analysis of his work. As all of these managers are located in the Pittsburgh territory, some comparisons are justified by the similarity of their territorial conditions. In interviewing the managers, the investigator made use of a standard "job outline" for all features of the branch manager's work. This outline was particularly useful at the first interview with a branch manager, because it helped to locate quickly thoso phases of the job in which he excelled. Later interviews with that manager wore then focustsed en these items. There are, of covrse, r.any other methods that might be followed in studying the loc.l manager's job. Some of these would be: (1) observations by the investigator of the manager's working methods, (2) interviews with general and district sales managers; (3) analysis of home office records on branch managers.; (4) interviews with their sales- men; (5) field observation of the salesmen's work; (6) conventions of branch managers; (7) interviews with a branch manager's competitors; (8) magazines, books and home offloe literature on sales management; and (9) interviews with users and prospective buyers. These methods of attacking the whole subject would undoubtedly be of value for a comprehensive point of view. I. THE RELATION BETWEEN THE DEGR E E OF A MAiIAGER'3 RESPONSIBILITY S35 HIS TORI'.IWC METHODS. The work of the ten managers varies considerably in the number of persons under their direction, the complexity of their work, their responsibility and mary other respects. In this report, the managers are respectively assigned numbers and ranks on the following basis: the manager whose work is most complex and responsible is designated Manager 1. the next in rank is called Lianager 2, and so on, to Manager 10, whose job is leas 4 -, responsible. Manager 1 has a total of 37 employees, handles all his own finances, makes his own collections, etc. The number of men in the sales force of each manager is as follows: Manager 1, 9 salesmen; Onager 2, 19 salesmen; Man-ger 3, 10 salesmen; Manager 4 8 salesmen; Manager 5, 7 salesmen; Manager 6, 2 salesmen; Manager 7, 5 salesmen; Manager 9, 4 salesmen; Manager 9, 4 salesmen; and Manager 10, 1 salesman. The a-aount of time th-rt the managers expect to devote to direct selling and sales promotion activities shows considerable diversity. Manager 1 assigns Z5% of his time to these activities; -4- Manager 2, 30^; Manager 3, 2C$; Manager 4, 1Z%» Manager 5, 60& Manager 6, 4:7%i and the remaining managers, each 75??. Managers 6, 8 and 10 reserve for themselvos a definite part of their branch territories and devote part of their time to direct selling. In other word3, they work for themselvos as part-time sales- men. One of these three men reserves certn. in large firms in the industrial section of the city for himself. The distribution of work, generally speaking, indicates that in those branch^:, which have less managerial responsibility, the managors believe that th? vuickest way to increase their earnings is to spend considerable time in direct selling and sales promotion, particularly the former . II. THE DISTRIBUTION OF EACH MAIL\GER*S TIME. The first table shows the per cent of time each manager allots to the five main divisions of his job. Managers are designated in the first row by key numbers instead of by names. TABLE Is PRESENT DISTRIBUTION OF EACH IMAGERS TIME. rManager ' s Number 1 2 3 4 5 6 7 8 9 : V) : : Personnel 15 60. 40 2C- 15 10 15 20 50 5 : : Office Routine 10 , 5 i 20 50 15 20 7 20 25 30 : : Financial 40 5 20 3 3 3 3 5 7 3 : : Selling 5 30 10 10 50 50 70 45 8 60 : iSalee Promotion 30 10 17 15 17 5 . 10 : 10 Z : Table 2 shows how those rnnagors plan to distribute their time in the future: -5- TABLE 2: FUTURE DISTRIBUTION OF TIME. Manager ' s Number 1 2 3 4 • 5 C 6: 7 8 9 3-0 : Personnel 10 30 25^ 10 10 10 : Office Routine Bo Changes. No Changes No Changes 15 5 ;!JO 20: Changes 10 10- 15 : Financial ' 4 1 i I 3 3 3- 5 5: 3 : Se 1 1 ing 22 30 22 r 65. 7fl 70 . Sales Promotion 50 30 25: 10 5 2 . The next table shows these future changes in distribution of time by means of minus and plus variations from the present distribution TABLE 3: FUTURE CHANGES. : Manager ' s Number 1 2 : 3 / : 5 . 6 : 7 : 8 1 9 10 : : Personnel -10 ♦15 +15 :-10 -40 +5 : : Office Routine -35 -10 -10 -15 -15 : Financial : Selling + 12: -20: -28: + 20 | +62 : +10 : Sales Promotion : + 33: ■''.al accounts connected with sales. Managers 10, 9, 5 and 4 receive a great deal of help from their home offices. Managers 1, 2, 3 and 7 receive very little assistance. Four of the ten sales organizations represented give be- ginning salesmen a special training course at their respective home offices. Three of the ten managers are furnished with printed train- ing courses for salesmen. One manager is furnished "leads" to live prospects in his territory. The home office gets these "leads" as a result of an extensive advertising campaign. Four managers receive assistance in hiring new salesmen. The other six are furnished with practically no guidance. Five managers receive assistance from the home office in the way of sales letters. Only two of the ten Managers 3 and 2, receive systematic per so- a) supervision from higher officials and these two say that they get very little practical assistance on methods of management. Manager 3 states that his company has an excellent plan of supervising his service department, but the district manager who is supposed to visit him about every three or four months to check up on his sales operations actually comes around only about once a year. When he does make a visit it is more in the nature of a social call; he does not make a systematic analysis and has very few lr'e ideas to offer. Manager 5's district manager spends two days with him every month but it is a very superficial and perfunctory visit, consisting chiefly of social chats about other branches and general sales policies, two or three dinners, a theatre or golf party and possibly a "pep" talk to the local salesmen. This hranch manager is very eager for helpful suggestions on hcrr to hire and break in new salesmen, how to supervise, develop and handle different tvpes of salesmen, how to analyze his territory, and similar duties that have fallen to his lot since he xvas promoted from salesman to branch manager. It would be useful to find out exactly how many general sales managers are competent supervisors of their branch and agency managers . Of the ten national sales organizations represented in this study only one seems to be trying out a system of supervision on a large scale. This system seems to be a failure because it is very superficial and , also because the best methods of branoh management are not used as a standard. IV. METHODS OF HIRING SALES! EN. Branch manager 4 receives the most assistance from his home office in selecting new salesmen. He is furnished with a standardized interview blank which enables him to determine approximately whether an applicant possesses the particular abilities that are considered necessary for success in selling his specialty. In addition to this blank there is a uniform application blank. This manager never relies on a single interview when he sizes up an applicant; he prefers to have the man call back at least once or twice - preferably twice. In spite of the fact that manager 4 has received some valuable aids from his home office, the general sales manager of his company realizes that there are still many chances for branch managers to make mistakes in sizing up applicants. Therefore, the home office is now -8- recerving the veto power oh all hiring and firing of salesmen by branch managers. In contrast with the help received by Manager 4 is the absolute lack of assistance in the case of Manager 8. His company does not even furnish a standard application blank. TVhen asked hew many salesmen he lias, he replied that there were six on the roll but only one of them could be counted a success. He was considering whether or not to "fire''' the- whole group and build up a new branch organization. At the same time ho realized that the chances ~'ould still be as great as in former times that he would "pick a bunch of lemons". He would like assistance from his horr.e office. In fact he is in such desperate straits that he has to devote a large amount of his time to direct selling, in order to pay expenses. The methods of hiring used by Manager 2 are unique. He gives preference to men who have had no previous selling experience. Eis salesmen have been recruited from various walks of life, - newsboys, blacksmiths, college graduates, barbers, store managers and others. New men are paid strictly on a commission basis. Although he does not use the most modern ?nd scientific methods of selection, he has built up in the short period of two years a creditable sales force of nineteen and is rated by his company as one of their best branch managers. The home office of Manager 9 will select new salesmen for him if he so desires. Manager 10 as well as Manager 4 must receive approval from his home office when he hires a new salesman. Five of tha ten managers regard the hiring of salesmen ac one of the most difficult phases of their work. Hone of the ten uses more than two source; of supply '"her. he need- a salesman, namely, - wart adds in local papers and his personal acquaintances or those of his salesmen. In concluding this comparative summary of methods of hiring, it should be stated that every one of the ten branch managers oould improve his present methods. ITone of their home offices has determined in on accurate manner the qualifications of a successful salesman. With the exception of the trade te3t used by Manager 4, no U3e is made of scientific methods of selection such as: an objective scoring of the applicant's personal history blank, psychological tests, trade tests, analysis of turnover, and graphic rating scales. V. DEVELOPING SALESMEN. (1) "Breaking in" New Men. Manager 10 gives a new man preliminary training for three weeks by having him help the service man, study in the office and accompany the manager in the field. Then the man is sent to the factory to be trained. Manager 3 trains a new man in the office for about ten days. He and his experienced salesmen give pointers to the novice and help hin master a machine demonstration. Then the new man observes the field work of one of the experienced salesmen or of the isanagcr for two or three days and finally goes out "on his cwa hook' 1 . ors 4, 5, and 9 do net have to broak in new man. All -9- rocruite receive training at the factory for three or four weeks boforo they join the local agencies. Manager 2 assigns a beginning salesman to one of his best men for about ten days. Then he has the new man accompany him for three or four days, and they take turns at selling and observing. (2) Field Supervision. / Managers 7, 5 and 2 arc the only ones who attempt to locate the weak points of their experienced salesmen by means of a field analysis. It has already been pointed out how Manager 2 docs this at the same time that he helps his men close hard deals. Manager 5 has boon trying a very systematic plan of field analysis. He has found it difficult to locate the weak points of one of his salesmen who had been with him for seven months. The following plan brought results. He spent a half day in the field with the sales- man without offering any help or suggestions. But he was continually observing the man's methods very closely and taking written notes. Viihcn they returned to the office he revealed to the salesman some of his salient weaknesses. The manager is very enthusiastic about this plan of field analysis because, it reveals a man's weaknesses with certainty and speed. He savs that at first it was hard for bim to keep from offering suggestions during the sales interviews. Since one of the most important functions of a branch manager is the development of his sales force, one would expect to find managers; making frequent and thorough analyses of the f iAld work of their men, in order to locate the stumbling blocks in their me^nods. The chief reason so little of this is dono is, perhaps, the desire", of the manager to get immediate results by helping his men close deals rather than to sacrifice a small immediate gain for larger future returns, furthermore , the managers have not generally found a systematic and economical method of / training their mefa. (3) Individual Office Conferences. > This method is used by every one of the ton majjasers. It scqms to bo the most useful tool for measuring a man's efforts fcnd increasing his skill. At one of these conferences the salesman usua*jy makes an oral report on deals pending, recent progress and plans 1'oH the future, "one of the managers seems to havu any definite system, in t-hoce con- ferences, that would enable him to get the maximum possible results in the development of his salesmen. Manager 5 does require his mu^i of loss experience to roport in writing the mnin details concerning, J****" i sales interviews. Even then he finds difficulty in loop ting their weak points. (4) Checking Daily Reports. i All Managers except 1 and 2 require their salesmen to make daily reports. The system followed by Manager 10 requires an individual prospect report for each sales interview. The form used c~n largely be filled out by merely making check narks opposite the printed items that are listed. An interesting feature of this simple form is the report on the result of the call. Twenty-two possible results cxe listed, such -10- as, - (1) Call Back; (2) Busy or 6ut; (3) Appointment for Demonstration; (4) Devising System; (5) Ho Progress; (6) Agrees to Trial; (7) Objects to Price; (8) Objects to G . (9) Objects to Handwriting; (10) May Develop Later; (11) Difficult personality; (12) Going to See Others; (13) Insufficient Use; (14) Demonstration 0. K.; (15) Trial Failed; etc. The card on which this is printed measures four and a quarter inchos by six and a quarter. At the end of the month the manager makes a summary tabulation of the data on "Results of Calls" from all the daily reports of each salesman. This is intended to furnish a measurement of the man's efforts for the month and to reveal sone of the weaknesses, in." Mr " * methods of selling. Manager 10 likes this system very much. However he ha*> only .one . salesman, so it is hard to say how successfully the plan would work "'ith an extensive sales force.. Certain drawbacks are involved in the use of daily reports. In the first place, many salesmen objeot to spending time on "red tape" which seems to yield them no direct benefits; secondly, some managers become negligent in checking up :he data on the report?, thereby defecting the purpose of the pysterx; but the biggest drawback to daily written reports is the tendency of manager: to place too much reliance on them in supervising their men, to the neglect of the more useful devices of office conferences and field observations. Some managers place little credence in daily reports as a check on a salesman's efforts because a man can easily trials "fake" r?portc if lie -./ants to shirk. Manager 5 admits that in most instances the daily reports handed in by his salesmen are filed T "ithout being referred to. Ee thinks that the mere requiring of written reports stimulates salesmen. Managers 1 and 2 regard reports as of so little service that they do not require them. Cn the other hand, Manager 7 considers daily reports very valuable. Kis stenographer attends to all details in connection with them, and calls his attention to lazy or carelees tendencies of salesmen as revealed by their reports. (5) Supervising "She Training Prog ram. This yecr, educational programs seem to be in "rogue in many sales organizations. The home office of Manager 8 is sending out advance lessons from a new printed training course for salesmen. The organization represented by Manager 2 is tcking steps toward con- structing a printed training program. In fact the home office officials are studying Manager 2's methods of training his nineteen salesmen be- cause he has been so successful in developing new men. Manager 5 cays that his salesmen do not appreciate the training course th<.rces: (1) by observing the selling methods of the nc oager and his e;;pe"ienced salesmen; (2) by reading miscellaneous litorsoure issued v .y the heme office; (3) by read- ing printed training lessons (in case there is a printed training course, 1 which furnish a few idees on phases of salesmanship; (4) by picking up stray ideas that -re e>:pre£ses*.# It! "*"der : to get; in couch will, uAX3.mon n> :nber : of prospects. '• X X X X X " X > 2. Farticipat.es in social affairs of : x business men, such as Chamber of : X Commerce, Country Club, Lodges. : X X X X X . X X X 3. Writes sales letters. : X X X 4. Keeps in systematic touch with sales : and methods of competitors. : X . X X X : X . X 5 * Checks up on past sales in different parts of branch territory 1 X X X 6. Plans sales campaigns. : X ' X X X X X • 7. fidv.ertises locally. : i X X 8. Renders good 'vill services' from : agencv office to prospects and users: X X X X X £ : 9- Makes exhibits of product at : business conventions. : X ' X X : Manager 2 is one of the most successful of the ten; yet he pays little heed to the possibilities of increasing his sales by the indirect methods of sales promotion. He prefers to spend more time on personnel work, such as developing and supervising his nineteen salesmen, thereby getting increased sales as a result of their direct selling efforts. Manager 3 is quite different; ho makes use cf eight of the nine sales promotion devices. Eslow are some illustrations of his methods: 1. UNIQUE SALES PROMOTION METHODS OF ONE MANAGER. Sales Campaigns: At one time this manager launched a campaign directed toward the occupants of a large office building. He required all his salesmen on one certain day to canvass in this building instead of in their own territories. As a result there was an increase in volume from territory which was considered ,: sold up" by the salesman to whom it belonged; and at the same time most of the members of the sales force were stimulated as a result 6f the group drive. -16- Sales Letters: He has secured such good average results in past years from the use of sales letters that he seizes every favorable opportunity to send out a series. Good Will Services to Users: This manager regards service to users as more potent in getting new business than the direct efforts of his salesmen. Therefore he supervises his service department vith extreme care. Every complaint from a customer, no matter how small, receives the manager's prompt consideration. He once sent out a circular letter to a sampling list of users, in whioh he asked whether their machines were giving satisfactory, sen/ice. •'■ . . Watching Competition: He is well posted on the business of his competitors. He knows about how much business each is getting; their respective methods of selling; their innovations; their regular and irregular (if any) discounts from list prices; and similar facts. He gets such information from the following sources: 1. Territorial reports from salesmen. 2. Gossip gathered by his salesmen from salesmen of competitors. 3. Personal observation in the field when he helps his men close big deals. 4. By quizzing prospects solicited by competitors. 5. Personal acquaintance with a manager of a second hand machine exchange . In connection with these activities of Manager 3 it is interesting to note, byway of contrast, the attitude of Manager 2 v:ho pays very little attention to what his competitors are doing. He says that he wants his salesmen to think only about the high grade features of their own product when they solicit orders. Competitors do not worry him. ■ • . 2. a: t alyzii:g territory. Manager 5 used a rather simple system in making a 'territorial analysis. He determined an approximately complete list of prospects by comsulting Bradstreet and Dunn's Credit Book and the classified section of the telephone directory. ' • .•»'< Manager 3 has secured a good analysis of his territory as a . '. result of systematizing the data from salesmen's daily reports during the past several years. We might designate this as an indirect and slow method of getting facts concerning sales possibilities.' Manager 7 used trade directories to get in. touch with a maximum number of prospects. ■ Manager 3 has a "piecemeal" • lar. of analyzing his branch- . . territory. When he launches a sales campaign n. against firms in one certain line of business, he gets the names of ail firms in that line in his territory by consulting trade directories. -18- business in the classified section of the telephone directory. Thon at a meeting of his salesmen he works out the machine applications for this particular line of business, stirs up en^husiarm and hands out the prospect cards one at a tine. Each salesman takes the cards of prospects in his territory, and is urged by the manager to centralize part of his efforts on them. Six managers make use of sales campaigns, directed almost entirely against single lines of business. Manager 2 succeeded in selling his product to banks, after his sales manager had cr5.tici2ed him lor failing to get more bank business. It happens that the banks save money when their patrons purchase one of the specialties that he handles; co he compiled a list of the patrons of each bank who had purchased his goods. With these lists as a weapon he started a campaign on the banks. This manager now holds the high record in his organization for sales to banks in his branch. 7. LOCAL ADVERTISING. Only two managers do any local advertising, and theirs is quite limited. EC. DIRECT SELLING. The one duty that seems to receive first consideration from branch managers is that of helping their salesmen close deals. Manager 1, is the only one of the ten who minimizes this task; Manager 3 dovotos only 10$ of his time to it. The remaining managers plan to spend considerable time, tanging from 22 to 70 per cent, in selling. Seme managers are perhaps spending more time in the field than they should, duo to tho fact that they are not capable of increasing the volume of sales from their territories by such indirect means as hiring and developing high grade salesmen, making territorial analvsis, writing sales letters, etc. Managers 10 and £ have had poor success in their choice of salesmen; therefore as a last resort they are spending about half of their time as salesmen rather than as managers. They have definite territories in which they work. Manager 6 reserves as his field the "cream" of his branch territory, - the largest and best prospects. He haSkbeen spending at least half of his time selling for himself. In the future, however, he plans to double his sales farce and spend more time on sales promotion and personnel • 'ork and less time on direot selling. In other words, he seems to realize that he has been functioning too muoh as a salesman and too little as a manager. He has had less than two years experience as branch manager. Most branch managers seem to have only one motive in helping their men close, - namely, to increase their total volume of sales by helping secure certain orders ';hich the salesman is not quite able to "swing". In general there are three reasons vhy the managers^ as si stance brings results: (1) his superior celling ability; (2) the stimulating effect on some salesmen who are a little weak in initiative; (3) the prestige of his position. X. FIEAIJCIAL DUTIES. Financial duties take second rank with all exoept Managers 3 and 1. Only four of the ten make their own s^les collections,- Managers • ^- ••■ • . -19- 1, 2, 3 and 7. All managers are devoting some attention to cutting down expenses. For example, Manager 7 reduced the .size of his sales force about 50$. He did this because the business depression cut down the 'demand'-for his 'product so extensively that, he could not afford to pay tho salesmen their' salaries. So he dismissed the weaker salesmen, increased the size ofyterritories and. is spending more of his own time in the field. Similar reductions have been made by other managers, but the present tendency is to expand the sales force. , Manager 1, has the greatest financial responsibilities of the group. All the time of four of his nine clerical employees is given to'the care of financial details. He spends 40$ of his time on this phase of his- job. .'«■•""■ XI.- WHAT ARE THE MOST DIFFICULT PEASES OF A BRATTCH MANAGER'S WORK. TABLE 6: ITEMS 017 WHICH MANAGERS DESIRE EIFORMATIOII. Manager's I?umber 1 •2 5 (. • 5 : 6 ! 7 : 6 : 9 : 10 I Hiring Salesmen • X X ■ X X : X Training Salesmen : X Supervising Salesmen X X *< Sales Letters X X Terr itor ia 1 Ana lyre s X •u- ■v X\i X . Working branch econor.ie3. X Self analysis X Handling ;vlen X .A. x ■ Manager b 7 and 9 were not interviewed sufficiently to get their answers. Manager 10 could not name any specific job items on which he was anxious to get new ideas. • -20- TABLE 7 PHASES OF THEIR JOBS WHICH BRATCH MAFAGERS CONSIDER THE MOST DIFFICULT. Br - no h Ma na ge r ' s ITumbe r 1 . 2 ! 3 : 4 : 5 : 6 : 7 : 8 : 9 : 10 Hiring Salesmen X X : X ! X Territorial Analyses X X X Meeting Competition X Supervising Service Dcp't. X Handling Men V X x • X . Working Branch Economies X : Supervising Salesmen X ! X X . Training Salesmen X The question was not put to Manager 9. Manager 2 dees not consider any one phase of his job more difficult than another. XII. IN MAT RESPECTS DOBS EACH MAKAGER EAVB GOOD METHODS? The answer to this question is very %*ital to the person "/ho is making a job analysis. In order to make a complete job analysis in an economical manner the first interview vith a branch manager should have as its principal aim to locate those phases of the job in which he is using good methods. Subsequent interviews can then be focussed on these job items. The differences between managers is very apparent. Managers 1 and 3 represent firms that not only sell the same kind of office specialty but also have similar sales org-nizations. How- ever, these two men in some respects, have very dissimilar methods of management. Manager 3 gives his personal attention to most of the "red tape" involved in office routine, such as checking reports, dictating routine correspondence and checking details on minor orders. Manager 1, delegates 85$ of his office detail v ork to his office manager; he gives his attention to important correspondence concerning sales and complaints only. Manager 3 also spends a great deal of time supervising his service and financial departments, whereas Manager. 1, delegates practically all of this responsibility to the foreman of his service department and to his head bookkeeper. Manager 3 spends very little time participating in the sccial affairs of the managers of Pittsburgh firms because, in his estimation, they hold such high positions that they have little to say about the buying of his product. Manager 1, on the other hand, spends at least a fourth of his time mingling in a social way with business men, and says that he has closed many "big deals" on the golf links. ifanager 3 requires his cavemen to make daily reports; he conducts salesmen's reetings every •reek, sti-ulates his men by means of sales campaigns, pep letters and contests , but spends little time helping his men close- hard deals, Manager 1 does not require his sales- men to make daily reports; he conducts salesmen's meetings. only once a month, does not make use of sales campaigns, pep letters and salesmen's contests; however ho does spend considerable time helping his men close hard deals. Manager 3 employs many methods of sales promotion such as sales letter campaigns, local advertising, and sales campaigns through his salesmen. Manager 4 gives little heed to such indirect methods of getting business. The follovin? table sumrr arizes the strcng points of each manager, in the judgment of the investigator. TABLE 8: EACH liA.lIA.GER ' S STR01IG POII'TS III HIS V/CRK. Manager's ilumber : 1 : 2 : 3 : 4 : 5 : 6 : 7 : 8 : 9 : 10 Salesmen's Reports : X : — : X Sales Letters : X : X 3reaking in Dew Hen : X : X Supervising Service Lepartment : X : X Working out branch economies : X . X > Meeting Competition X Accounting System A X Hiring Salesmen : X X Training 5-lesmen X X Territorial Analysis X . X Delegating Tasks to Assistants X Office System : X X X Social mixing with business men X Making Collections : A, Handling Men X X X . Sales Crmpai^ns . X X j 3alec:rv3n's Contests : > « X : X 3up-;rr-isin£ Salesmen : X Salesman's Meetings : X : Helping Men Close Deals : X X : Pep literature : X ': : '■ -22- C0HCLUSICBT3. , In the introduction it was str.ted that a complete job analysis holps solve the following problems concerning branch managers: seleotion, training, measures of success, organization. This report contains a very limited amount of data on each manager's job, but these data throw some light on the solutions of the , problems. A. Select ion> This study revoJs very clearly that in the sales organizations other than- those represented by managers 3 and 1, ability to handle financial affairs is a secondary qualification of a successful branch mnnager, whereas skill in managing nen is very primary. Some 'of the most important qualifications seem to be: the ability to (1) get nen to work (2) hire high grade men, (3) train then, (&) help then close deals, (5) analyze the salesman's weaknesses, (6) shift his attention to the various phases of his job, (7) analyze the sales possibilities in his branch territory, (8) plan ahead, (9) participate in the social affairs of business men, (10) avoid unnecessary expense in managing his branch office, (11) keep systematic records, (12) try out new ideas, (13) write sales letters. ®* - 7rsin " ni v As regards the construction of a training course for branch managers, so rainy concrete illustrations of method have been offered that no comment is necessary. C. Or gani zation. Table 4 shows that the organizations : represented by the Tollovinr six managers are more highly centralized than the other four: Managers 4, 5, 6, Q,0.,srd X). This year there seems to bo a general tendency toward centralization. For example, some home offices are reserving the veto power over the branch manager's selection of new salesmen; some firms are giving more assistance to branch managers in the matter of training salesmen. Since there are so many variations in the degree and kind of centralization, the problem is raised of determining in an objective manner the most efficient system of centralization. The same problem was raised inlir. H. G. Kenagy's discussion of "Problems of Sales Organization" in the October issue of the Service Bulletin of the Bureau of Personnel Research. The homo office may well take into account at least the following three principles: 1. The home office should give a ssn stance on those phasee of the job which are of greatest significance. 2. Help should be offered on these tasks which the manager finds most difficult or is performing in an inefficient manner . 3. Since the branch manager's job embraces so many tasks, it seems feasible for the home office to assume responsibility for the performance of certain time- consuming functions, such as makim collections, keeping accounts and writing: sales letters. -23- On the basis of these principles, the home organizations of office specialty should assume more control over the following duties: (1) hiring salesmen. (2) training salesmen. (3) making territorial analyses. ((.] supervising salesmen. (5) training "branch managers. (6) making collections. (7) keeping financial accounts. (8) sending sales letters. This investigation has revealed wide divergences in the rrork. and practices of the various sales branches. la there one system that is best ? What is, for example, the best plan of remunerating branch managers, or salesmen? What is the best system of using "Junior" sales- men? What kinds and degrees of supervision should the branch manager receive from his home office? What are the standard practices of agency management; or should the local manager's judgment be his chief guide ? In the diagnosis of the weaknesses of an unsuccessful agency, many general managers try out first one possible remedy and then another, hoping, with each change, to eliminate the cause of the agency's failure. In doing so, they are like the unskilled automobile owner who, when his car fails to "work", tinkers tilth any parts of the machine upon which he can lay his hands. If the difficulty is not quickly located, he calls upon the expert mechanic for help. Before the mechanic "fixes" anything, he makes a careful diagnosis of the trouble, step by step. He then quickly makes the needed repairs. In the same way, the sales manager needs a systematic method for the scientific observation, analysis and vei?-hing of facts about his agencies, in order to deal accurately with situations arising in the organization. The "job analysis" method followed in this report has been developed to help in the filling of these needs. THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $I.OO ON THE SEVENTH DAY OVERDUE. APR 10 19 3 6 DEC 4 13ZL DEC 81982 JW 8 A 8-