SALES MANAGEMENT PRACTICES OF

JOHN KEELLS OFFICE AUTOMATION (PVT) LTD.

Group Assignment
Prepared by
DM/2013/001
DM/2013/008
DM/2013/014
DM/2013/017
DM/2013/026
DM/2013/030
DM/2013/031
DM/2013/040
DM/2013/041

Sales Management (DMKT 02154)

Diploma in Marketing
Course Lecturer:

Dr. Bandara Wanninayake

Mr. Gayan Jayasinghe

Submission Date: 17th May 2014

Department of Marketing Management

Faculty of Commerce and Management Studies
University of Kelaniya

CONTENT

1. Executive Summary
2. Company and Industry Background
2.1. Introduction to JKOA
2.2. Vision, Mission and Values
2.3. Achievements
2.4. Business Model
2.5. Product Range of the Company
3. Description of the Sales Managers Position
3.1. Company Hierarchy of the sales department at JKOA
3.2. Sales Manager Job Description
3.2.1. Key Elements of a Job Description
3.2.2. Sales managers Key Job functions as follows
3.3. JKOA Sales Managers Duties and Responsibilities
4. Sales Planning and Forecasting
4.1. The reasons for sales forecast
4.2. Analyzing marketing potential
4.3. Sales forecasting
4.4. Sales Forecasting for the new products
5. Organization of the Sales Function
5.1. Key Elements considered in the Organizational hierarchy.
6. Recruiting and Selection
6.1. Recruitment Process of JKOA
6.2. SELECTION PROCESS
6.2.1. Selection Process of JKOA
6.3. Hiring Process of JKOA
6.4. Induction Process of JKOA
6.5. Sales force training
6.6. Importance of Training
6.7. Training Method of JKO
7. Compensation
7.1. Compensation Methods
7.2. Commissioning Scheme
7.3. Bonus
8. Sales expenses
8.1. Sales Expenses of John Keells Office Automation (Pvt) Ltd
8.2. Reimbursement of sales expenses
8.3. Manager may consider some factors influence sales expenses
8.4. Method of controlling and reimbursing expenses of sales person
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9. Territory assignment
9.1. Territory management of John Keells Office Automation (Pvt) Ltd.
9.2. Geographical Reach & Coverage
10. Performance appraisals
10.1. Performance appraisal of the Sales Department - John Keels Office
and Automation (Pvt) Ltd.
11. Recommendations and Suggestions
12. References
13. Appendix

1.0.

Executive Summary

This report was commissioned to analyze the Sales Management process of John Keells
Office Automation (Pvt) Ltd; hereinafter mentioned as JKOA, which has been secured the
success in the Information Technology industry within local market as well as offshore
market. JKOA is a premium example for well-structured sales activities in Sri Lanka. Its
sales process and relative functions such as; Sales Managers position, responsibilities,
Sales planning and forecasting, Recruiting and Selection, Compensation, Sales Expenses,
Territory Assignments and Performance Appraisals are being discussed by this report.
Company and Industry Background of JKOA; how the sales are functioning including
company history and a description of the company objectives, vision / mission & covalues highlighted. Main management philosophy, strategies and presenting an original
strategy overview relevant to the sales position of JKOA.This report has identified the
key marketing strategies and the role of personal selling within the Sales force in order
with the brief identification of Sales Managers position including description,
specification, qualification and responsibilities. Sales Planning and Forecasting plan has
been discovered by analyzing day to day operations.
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Description of job responsibilities, present communication methods, territory division,

and account management practices by using the organizational hierarchy. Organizational
Recruiting and Selection function which used by JKOA has been analyzed and candidates
identified, what selection procedures they are currently using, what training programs do
they deploys on the arrival of new recruitments and the details of training methods of
training has been identified here. Compensation method of JKOA, how are the employees
perks paid, what methods of motivation does the company currently following and
rewards, benefits methods etc. We have analyzed and identified the Sales expenses which
covers vehicle allowance, meals, medical, staff training and development etc. and as well
as the territory assigned by geographical region wise (Colombo/Outstation region wise).
Further analysis reveals that the JKOA has some areas in the Sales Management process
which has to be updated or to be implemented which is mentioned under the
Recommendations and Suggestions.

2.0.

Company and Industry Background

John Keells Office Automation (Pvt.) Ltd.,

2.1. Introduction to JKOA
John Keells Office Automation (Pvt.)Ltd., (JKOA), is a 100% owned subsidiary of John
Keells Holdings PLC., the largest listed conglomerate in the Colombo Stock Exchange.
JKOA is the premier provider of office automation solutions in Sri Lanka. In the
businesses of Copying, Printing, Mobile Computing, Visual Projections Solutions and
Retail Automation, our services reach out to Government, Private and NGO organizations
all across the country. Recently, the company embarked an aggressive entry into the
Mobile Phones business.
Innovative products from leading brands and exceptional after sales support has been
JKOAs forte for more than 17 years.
Group Corporate Governance philosophy founded on a culture of performance within a
framework of conformance and compliance represents what it takes to succeed in
today's competitive business environs in a manner that is sustainable and equitable to all
our stakeholders. This philosophy has been institutionalized at all levels in the group
through a strong set of corporate values and written code of conduct.
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In providing more stakeholder confidence, John Keells Group released its stand-alone
Sustainability Report for 2008/2009. This was the first report the conglomerate has
published in adhering

to Global Reporting Initiative (GRI-G3) framework as well as

with external verification from Det Norske Veritas AS (DNV AS).

The group is a full member of the World Economic Forum and a signatory to the UN
Global Compact.

Name: John Keells Office Automation (Pvt.) Ltd

Established: 1992
Legal form: Private Limited Company incorporated under the Companies Act No. 7 of
2007(New)
Parent company: John Keells Holdings PLC.
Nature of business: Trading
Staff strength: 217
Geographical coverage: Sri Lanka & Maldives through an appointed dealer network.

2.2. Vision, Mission and Values

Vision
To be the leading provider of technology driven Office Automation solutions supported
by the highest standards of the service in the industry.
Mission
To create value by continuously improving all of our work processes to satisfy our
internal and external customers. Our customers speed and execution will be our primary
focus in the industry.

Values

2.3. Achievements
JKOA Wins the Diamond Award for the 2nd Consecutive Year from TOSHIBA.
JKOA won the diamond the award for Area 2 for Overall sales growth and color sales
growth. These are the two criteria's used.
Other countries in Area 2 included as follows:
Indonesia

Thailand

Bangaladesh

Vietnam

Cambodia

Philliphines

50% of the market share for Toshiba Digital Copiers - 2010/11 (Toshiba
Singapore)
The Pinnacle award Group B Best TMCP For outstanding performance 2010From Toshiba Singapore
Best start up operation Samsung Moble-2011
Best Markey presence 2009 - From Toshiba Singapore
Valuable Sales support and contribution 2009 - From Hitachi Home Electronics
Asias (pte) ltd.
Silver Award for Excellent Performance 2008 Copier Business - (Toshiba
Singapore)
Silver Award for Outstanding Performance 2008 Copier Business - (Toshiba
Singapore)
Silver Award for Quality Service Campaign 2007 Distributor Category Hardware+
Network, Group A - (Toshiba Singapore)
Bronze Award 2007 Year on Year sales growth for photocopiers (Toshiba
Singapore)
Special Award 2006 In recognition of JKOAs outstanding performance and for
making a lasting contribution to RISO duplicator sales in the Asia Pacific Region
(RISO Japan)
Gold Award 2006 For the highest sales growth of Toshiba notebooks (Toshiba
Singapore - Computer Sales Division)
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 Gold Award 2006 For the highest sales of Projectors (Toshiba Singapore Projector Division)
2.4. Business Model
The company conducts business on Distributor/Reseller model. Direct Sales/Service
approach is adopted for the corporate sector while regional and consumer markets are
covered by a well appointed, growing base of resellers covering the entire country. In the
mobile phones business JKOA operates as National Distributor, limiting itself only for
sales aspects.
In providing greater benefits to clients and higher efficiencies, we have outsourced
service operations in few selected geographical areas.
2.5. Product Range of the Company
JKOA is the authorized distributor and service provider for the world recognized brands
such as Toshiba, Samsung, Asus, Riso, Hitachi, and they are directly connected with
world renowned companies to strengthen their capacity of the market as follows,
Products
Notebooks

Description

Brands

and Office Automation

Toshiba, Asus, Samsung

Computers
Photocopy Machines

Office Automation

Toshiba

Multimedia projectors

Office Automation

Hitachi, Samsung

Digital Duplicators

Office Automation

RISO

Printers and Scanners

Office Automation

Samsung, Cotex

POS Products

Mobile Phones

Point of sales materials for Firich, Posiflex, Bixolon, Zebex

retails Customers
Agent

for

Samsung Samsung

Mobiles

Representations: acts as distributor for products & services of:

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a) Toshiba Singapore (Pvt.) Ltd.,

Multi-Functional Products -( digital full

color/B&W,copiers with printing,scanning,
faxing and networking options).

- e-Studio Solutions Suite-(Re-Write, EFMS,

Innofax, Toshiba ID Gate - software to
enhance MFP product capabilities)
- Notebook Pcs
- PNPL (contractual copier rental service)
b) RISO Kagaku Corporation

- Digital Duplicators.

c) Hitachi Home Electronics Asia (S) Pte. Ltd .- Multimedia projectors and
Interactive Whiteboards.
d) SAMSUNG INDIA ELECTRONICS PVT. LTD. - B&W/Color laser printers/
/Multimedia Projectors/
Notebook Computers
e) SAMSUNG ELECTRONICS CO., LTD.
f) FIRICH ENTERPRISES CO., LTD.

- Mobile Phones
- Point of Sales (POS)
equipment and customized
software.

g) Posiflex Technologies INC.

- All in one touch terminal POS

Accessories.
Recipt/Bill Printers , Mobile
Printers,
Desktop
Hand

Barcode

held/Desktop barcode

Scanners.

h) BIXOLON CO., Ltd.

- Thermal/Impact printers for

Retail Automation (RA)
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Printers.

applications.
i) Zebex Industries Inc.

- Optical/laser scanners, image

scanners for Retail Automation
(RA) applications.

j) ASUS Tech PVT LTD.

- Notebook Computers

Exceptional after sales service over 17 years & the innovative products has been JKOAs
forte for such a long period.
JKOA uses an advance IT platform for their daily activities, daily transactions special
systems for after sales services too. As the products are highly IT related innovative items
their target market also moves along with the newest technology in the world. The call
center is one of the systems which they use for integrating all supportive services. It
performs the functions of sales routing, call logging, and call status update, escalation of
reports, engineer allocation and dispatch, product promotion. When a customer dials the
JKOA they log the call to the system and all the other functions Quotation calling,
purchasing, reports, promotions, opportunities and etc. are done with the system.
The other main system that they use is the SMS engine which is developed basically for
after sales services. Sharing information on fault descriptions, job completion status,
management reports, engineer productivity, toner yield and machine history are some of
the service related jobs done through this sophisticated SMS engine. On the other hand by
this system company maintains a growing database of service records with high accuracy
and traceability. It enables comprehensive corrective information and decisions sharing
with the field staff on real-time mobile communication technology.

3.0. Description of the Sales Managers Position

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3.1. Company Hierarchy of the sales department at JKOA

3.2. Sales Manager Job Description

Sales Manager should Manages sales of the companys products and services in within a
defined geographic area, province or country. He or she should ensure consistent,
profitable growth in sales revenues through positive planning, development and
management of sales personnel. Identifies objectives, strategies and action plans to
improve short- and long-term sales and earnings.
3.2.1. Key Elements of a Job Description

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1. Job Title
2. Job Identification Include data to distinguish job from all other jobs
3. Essential Functions ( Job Duties ) Indicate responsibilities entailed and results to
be accomplished
4. Job Specifications Skills required to perform the job and physical demands of
the job
5. Job Specifications following sections should compare:
I.

Personal qualifications an individual must possess in order to perform the

duties and responsibilities
a) The skills required to perform the job Education or experience,
specialized training, personal traits or abilities, interpersonal skills or
specific behavioral attributes and mental dexterities ( Skills in
performing task)
b) The physical demand of the job: Walking, standing, reaching, lifting,
talking and the condition and hazards of the physical work
environment.

In addition to job specification researcher called Rogre emphasis that Sales Manager
should prepare specific document called personal specification which provides guidelines
to select appropriate employee to the job position if the consist of several elements as
follows:
Physical makeup / outlook
Attainment Education, training, experience
General Intelligence / Common Sense
Special aptitudes / Special mental capabilities
Interest / Personal willingness
Disposition Personality. Leadership, etc
Other circumstances
Job Design becomes an important part of an organization and sales department due to it
has direct impact on several performances indicating of employees. Job designing is the
personal or engineering activity of specifying the content of job, tools and techniques to
be used, the surrounding of the work and relationship of one job to other job.
3.2.2. Sales managers Key Job functions as follows:
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1. Responsible for obtaining profitable results through the sales team by developing
the team through motivation, counseling, skills development and product
knowledge development.
2. Manage the sales administration function, operational performance reporting,
streamlining processes and systems wherever possible, and advising senior
management on maximizing business relationships and creating an environment
where customer service can flourish.
3. Responsible for managing the sales team, developing a business plan covering
sales, revenue, and expense controls, meeting agreed targets, and promoting the
organizations presence throughout Sri Lanka.
4. Assist in the development of the annual marketing plan, specifically advising on:
realistic forecasts for each product and territory (based on historical data, market
trends, competitive activity, promotional strategy and sales effort), realistic costs
of operating the sales force; and sales promotion program plans.
5. Ensure that all sales representative activities are in accordance with the guidelines.
6. Responsible for the planning, recruitment, direction, organization and control of
Ares sales managers and sales representatives to accomplish specific objectives.
7. Responsible for monitoring the performance of the sales team by establishing a
system of reports and communications involving sales reports, cyclical sales
meetings, sales newsletters and electronic mails.
8. Plan and implement a specific appraisal system that describes the responsibilities
and performance standards for each member of the sales team, set individual
territory sales and commission targets and administer the commission plan.
9. Personally observe the performance of sales representatives in the field on a
regular basis.
10. Provide high standards of ongoing training for the sales representatives so that
they possess sufficient product and technical knowledge to present information on
the companys products in an accurate and balanced manner.

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There are role of sales department in an organization has become strategic and
formidable. Sales manager is looked at as a combination of an accountant, a planner, a
personnel manager, and a marketer at the same time. However they prime responsibility is
to augment the sales force by augmenting the sales closing process.
3.3. JKOA Sales Managers Duties and Responsibilities
Determining sales and objectives and goals of the organization
Finalizing sales force organization, size, territory, and quota
Forecasting and budgeting sales
Selecting, recruiting, and training the sales forces
Motivating and leading the sales force
Designing compensation plan control systems
Designing career growth plans and building relationship strategies with key
customers
Achieve the set targets for given products for POS and mobile phone products (all
Island)
Follow up and analyze the ASMs activities
Assign the sales targets for distributor channels Colombo and outstation
Monitoring the collections and debtors of each ASMs areas
Monitoring distributors payments
Make decisions against distributors
Appoint new distributors and maintain and retain them
Termination of distribution ship etc
This department has always attempted to sell and push the products through the channels
and make them available to customers. This kind of strategy intent in the form of push
and pull has brought business down in the earlier part of the company functions.

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4.0. Sales Planning and Forecasting

The following Points should be considered before the planning
Where are we now? The SWOT analysis.
Where we want go? The objectives
How do we get there? The strategy
How to ensure the arrival? Control and measurement
1. Setting sales objectives
The objectives are set according to the market potential based on the previous year
experience and considering the past records the objectives are set with a 10%
increment on the volume sales.
2. Determine operations determining operation necessary to meet objectives
Expansion of distribution territories introducing new self keeping units (SKU)
finding out new distribution networks appointing distributors etc.
3. Organizing for action
Based on the objectives the total target for the business development activities are
been divided among the sales managers. A budget is allocated based on the actual
cost forecasts.
4. Implementation
The annual growth plan for business is been implemented according to the
calendar month.
5. Measuring result against standards
According to the annual plan all sales managers have to present their development
according to the brake-down of the annual plan.
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6. Re evaluating and controlling

According to the set plan and objectives the progress is monitored. If the targets
are not achieve precautions will be taken to achieve the sale objectives.
4.1. The reasons for sales forecast
Planning Imports by shelf keeping unit
1. Preparing budgets
2. To determine sales targets
3. To evaluate performance
4. To determine commission schemes
5. To provide necessary point of sales materials
Ex.; Danglers, Wobblers, Pennants, Cutouts

4.2. Analyzing marketing potential

1. Marketing Identification
1.1 Who buys the product
1.2 Who use it
1.3 Who are the prospective buyers & users , Always John Keells Office
Automation (Pvt) Ltd users primary research & secondary research to
identify the market
2. Identify the Market Motivation
To identify the reason why customers buy the product and the reason why the
potential customers might buy it or not.
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How best to present the product in sales talks. The relative appropatness various
promotion methods.
3. Analysis of Market Potentials
Select market / environment factors related the product demand.
Eliminate those markets segments that do not contain prospective bios of
the product.
4.3. Sales forecasting
The commonly used methods for the existing products are bottom up or build up
approach. The following stapes are taken for the current product range which is existing
in the market.
The sales person estimate sales expected from their customers and same
information given to the area sales manager through the relevant supervisor for
the sales forecast.
The sales forecast is being prepared by area sales manager for the demarcated
territory.
The sales manager combines all information given by the area sales managers and
present the sales forecast in four ways.
I.

Monthly Sales forecast by volume

II.

Quarterly sales forecast by volume

III.

Sales forecast for six months

IV.

Sales forecast for one year / revised annual plan

The head of sales presents the information in a form of a report to the marketing manager
and general manager with a contingency plan to achieve the short fall by geographical
demarked area.

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4.4. Sales Forecasting for the new products

Based on the market research and business potential the management of the company
decides the expected sales for the new products. The Sales target is being determined by
the top management and divided according to the market potential via distribution
channel.
The following factors are considered on Top Down or Break Down approach.
Environmental analysis Micro and Macro
Market potential
Sales Potential
Market share

The following steps are considered for the sales planning of JKOA.
1. Setting Objectives
2. Determine operations determining operation necessary to meet objectives
3. Organizing for action
4. Implementation
5. Mishearing result against standards
6. Re evaluating and controlling
Products
Notebooks

Description

Brands

and Office Automation

Toshiba, Asus, Samsung

Computers
Photocopy Machines

Office Automation

Toshiba

Multimedia projectors

Office Automation

Hitachi, Samsung

17

Digital Duplicators

Office Automation

RISO

Printers and Scanners

Office Automation

Samsung, Cotex

POS Products

Mobile Phones

Point of sales materials for Firich, Posiflex, Bixolon, Zebex

retails Customers
Agent

for

Samsung Samsung

Mobiles

5.0.

Organization of the Sales Function

5.1.

Key Elements considered in the Organizational hierarchy.

All principals of organizing are been considered before preparation of the organizational
structure.
1. Utility of objective
The person for departmentalization should be rational and common organizational
objective. The synergy among other departments is important. Example:
Transportation and delivery of stocks should coordinate along with sales
coordinator.
2. Authority and responsibility
Each position of the organization structure should be given responsibility and
authority to perform his task. The authority and responsibility is given hand in
hand to perform the task.
3. Unity of Command
One person should report to one person or one boss it should be clear.
4. Scalar Chain
Clear authority from top to bottom it clears the clashes.
5. Spam of control
Authority and responsibility should be delegated to the size of a spam of the
control. Manager should be able to monitor and control all executives reports to
him. Most pam of control means a responsible level of authority, control and
should be able to communicate effectively and efficiently.
6. Management by exception
Delegation of an authority and responsibility given to each designated level to make
decision of their function.
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Some sales departments use functional organization. The sales force, should have as few
separate duties as possible the principle of specialization is utilized to the fullest extent.
Duty assignments and delegation of authority are made according to function. No matter
where a particular function appears in the organization.
As F. W. Taylors four principles of scientific Management approaches all four elements
are practiced in this organization
1. The development of best method for performing each task
2. The scientific selection and development of work
3. The scientific education and development
4. Initiate friendly co-corporation between management and workers.
In this organization, sales executives will receive instructions from the immediate
superior on different aspects of their work. For coordinating the functional executives is
made only at the top of the structure mainly by managers. The executives at lower levels
do not have coordinating responsibilities. In contrast to the line and staff organization, all
specialists in a functional organization have line authority as well as a they have function
authority. Instructions can be put into effect with or without prior approval of the top level
or by consulting the immediate superior.
The outstanding advantage claimed for the functional sales department is improved
performance. Specialized activities are assigned to experts, whose guidance should help
in increasing the effectiveness of the sales force. The sales force in these large firms
makes the highly centralized sales operations of a functional organization impractical.
Most large firms need more administrative levels when the marketing area is widely
spread, when the product line is wide, or when large numbers of selling personnel are
required.
The practicality of functional organization for sales department is open to question. Small
and medium sized firms do not find it practical, or financially possible, to utilize the high
degree of division of labor. Functional organization is suitable for large firms with stable
operations and with opportunity for considerable division of labor, however, certain

19

characteristics of functional organization cause it to be rejected even by most large firms.

Large companies with stable selling operations are the exception rather than the rule.
Major Functions of the leadership
Directing Function
Communication Function
Motivational Function
Culture building Function
Changing Function
All principles of organizing are practiced in this organization
1. Utility of objective
2. Specialization
3. Coordination
4. Authority and responsibility
5. Unity of command
6. Scalar chain
7. Spam of control
8. Exception
9. Efficiency
10. Balance
11. Homogeneity
12. Continuity
13. Simplicity

6.0. Recruiting and Selection

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Recruitment is a process of generating a pool of qualified applicants towards

organizational vacancies. It includes key elements as identifying job vacancies, analyzing
job recruitments, factors affecting to recruitment, preparing applications, selecting
recruitment methods, implementation and evaluation.
6.1. Recruitment Process of JKOA
Once the vacant arise in the sales department, sales manager informs to HR department to
fulfill the vacant. As per JK practice initially they try to appoint suitable person from
internally incase if they dont find any person to required position from internal they will
recruit from outside.
In case of internal recruitment sales manager or the superior recommend HR department
to respective person to promote or appoint the relevant position based on his sales
performance, skills, qualifications and other capacities then HR will check his
performance and the personal file if HR found that who is suitable for relevant position
they will go ahead.
In the event of external recruitment company used to advertise on the newspaper (Sunday
observer) and the Top jobs.lk to attract potential candidates which vacancy advertisement
is designed by marketing department graphic developers and published by the HR
department on such Medias.
JK provides 10days time to applicant to apply once the application received HR
department executive sorts the application based on requirement needed for the position
where company will check applicant experience, qualification, past track record, age and
geographical background (if required) then sort listed applicants will be notify the
interview date, venue through the written letter by the HR department signed by the HR
manager.
Company practices the panel interview method to select the candidates where for
executive positions HR Manager, Sales manager and sales coordinator represent the panel
for 1st interviews, for the second interview panel will be represent by the head of sales,
HR manager and CEO.
For managerial position candidate will be interviewed by the panel represent by HR
Manager and head of sales and the 2nd interview will be conducted by CEO.
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6.2. Selection Process

Its a process of finding most appropriate candidate to fill the vacancies out of the pool of
candidates. Selection methods are as follows,

Evaluation of applications
Selection Examinations
Interviews
Background investigations
Assessment Centers

6.2.1. Selection Process of JKOA

Out of those selection methods JKOA is mostly following interview method. Once the
suitable candidates identified through the interview HR department investigate about their
background by calling their referees, if the candidates from same industry company verify
his past track record with previous company, and about his behavior with friends those
who closed to the management in the industry. Candidate does not undergo a medical test
as per the company practice.
Company will select the most appropriate person who found satisfactory in those areas.
Once the company finalizes the selection selected employee will be informed through the
written letter by the HR department. He will be issued an appointment letter mentioning
his designation, remuneration which negotiated during interview and job description.
6.3. Hiring Process of JKOA
The newly selected employee is applicable to 6months probation period. After 6month
company will evaluate the performance and decide whether permanent the employee or
extend the probation period. If the achievement does not meet up to 90% within 6months
company will extend the probation period.

6.4. Induction Process of JKOA

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After the selection selected employee undergo many training provided by the company as
per company schedule 1st week of every month they will conduct the induction program
within JK group where every newly recruited staff should be participated. Induction
training is conducted by the Group HR department with the representative of relevant
company in the group.
6.5. Sales force training
Training staffs is very important to the every organization which is a systematic process
of maintaining and improving productivity of employees in order to increase the
organizational goals.
6.6. Importance of Training
Training upgrades the knowledge of the staff
Motivates and retain the employees
Minimize the performance gap of the employee
Increase the quality of work and productivity
Lead to creativity and innovation
Adopt employees to new changers

6.7. Training Method of JKOA

JKOA human resources department is identified the training needs of sales staffs by the
comments of immediate supervisor, from the annual appraisal where employee can
request his training need in addition to that manager can request the required training to
his staffs. After the training HR department. Evaluate the training outcome by the sales
report generated by the system to ensure the effectiveness of the training provided.

Initially company follows lecturing method to train the newly recruited staffs where
product training, professional training will be provided. Product training will be
23

conducted by the product managers such as Toshiba, Hitachi, etc and representative of
technical department.
Professional training will be provided by the professional from the professional bodies.
Once the staff gets familiar with product and service of the company follow the sensitive
training method and assign them to a an experienced staff for a month to acquire the
knowledge and experience.

7.0. Compensation
7.1. Compensation Methods
The sales division of a company and the sales manager should consider the compensation
method, behavior and activities very carefully. A good compensation repo will get a
company better results while a badly handled compensation system spraying bad impact
all over the organizations status.
A better compensation method can be used to motivate the sales force to achieve the
common organization goals. Also, it can attract talented and dedicated salespersons from
outside by giving promises to upgrade their living styles. Higher commissions for most
wanted product movements, special appreciations for new account achievers will increase
the company revenue accordingly.
There are three (03) types of Compensations Plans;
1. Fixed Salary
This method of payment motivates salespeople to consider the whole sales process
and they dont need to wait for the quick incomes.
Ex: Technical Supporters

2. Commission Only

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This method provides an incentive to the salesperson for his/her sales because the
salespersons income depends on the business he/she achieves. Also, under this
method all the sales targets are short termed.
3. Salary plus Commission
This combines the above mentioned two methods and provides financial incentive
with a level of security. Income does not depend on the business they achieve; as
in the commission only system, so that the sales manager can utilize sales persons
time more effectively. Also, as the income is stable, this method attracts more
sales personals attachment to the company.
John Keells Office Automations (Pvt) Ltd. is following the Salary plus Commission
method as for compensation purpose. Company gives the employee a pre-determined
basic salary which is categorized according to the level of authority. As most of the
companies, salary range of JKOA also starts from Rs. 18,000/- to 25,000/- for trainees
and junior executives. This salary range includes the government budgetary allowance as
well.
The company adds a fuel allowance to the salary of some employee categories such as;
ex. Executives, Marketing Officers which will be around 8,000/- rupees. Also the
company gives the employee a chance to own a motorbike by giving a Bike Loan, which
is around Rs. 100,000/- and it is deducted from the salary on a low interest rate such as
2%.
7.2. Commissioning Scheme
JKOA pays out the commission to an employee on the given GP (Gross Profit) targets for
the scheduled time period.
Ex: If achieves 100% of GPT

5%

If achieves 80% of GPT

3%

7.3. Bonus
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The company gives bonus in twice a year in the months of June & December. This bonus
is paid on the basis of last year achievement and the maximum amount paid as the bonus
should not be exceeded 50% of the basic salary considering they are commissionable
staff. But other employees of JKOA will be getting a full salary as a bonus, considering
them as non commissionable staff.

8.0. Sales expenses

8.1. Sales Expenses of John Keells Office Automation (Pvt) Ltd
Sales peoples always working in outside in Organization. So they have to bear some field
selling expenses. However keeping expenses of field sales persons within resonal bound
is very important,
There are other reimbursement of expenses, already entitle their job appointment (E.g.
Medical, Insurance, and Educational Expenses).
8.2. Reimbursement of sales expenses
There are 2 methods of reimbursement of sales expenses,
1. Pay their own expense:Sales peoples act as independently which their sales. They should decide to cover
those estimated expenses. This method normally not in use at John keells Office
Automation (Pvt) Ltd.
2. Reimburse s for all or part of their expenses:This method mostly use in above company. That mean it gives opportunity to
reimburse the full or partial expenses.
(Eg .if any sales person goes for a housing loan share from 50% by company).
(E.g. reimburse some percentage from diploma courses fee (not degree).It will
depend on sales persons job rank)

8.3. Manager may consider some factors influence sales expenses

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Sales manager should have idea above range of sales expenses base on several
characteristic.
1. Territory size and characteristic
Allowances and Bata will depend on how many days in outstation and how
many days in inside the Colombo. Consider about what are the area they have
to cover. In here John keells Office Automation (Pvt) Ltd has main three
greater Colombo areas as Katunayaka,Biyagama,Battaramulla and outstation
areas as Kurunegala, Kandy, Badulla, Galle ,Negambo ,Apura, Ampara and
Jaffna.
2. Nature and breath of sales product line
There are 5 office Automation products (note book computer/photo copy
machine/multimedia projectors/digital duplicators/Printers and scanners and
also POS/mobile phone) because of above varicose OA products John keells
Automation (Pvt) Ltd company have to maintain separate sales expenses
scheme.
3. Mode of travel
Mostly sales peoples use cars and motor bikes.(SM/TM/ASM/car use for their
field visit, sales executives/sales assistant use motor bikes in John keells
Automation (Pvt) Ltd company )
8.4. Method of controlling and reimbursing expenses of sales person
1. Flat expenses system
Give to sales persons to sum of period (given period) to cover the total
expenses (month/week).in this method some organization ask some evidence
some are not. this method not use in John keells Automation (Pvt) Ltd
company
2. Flexible expenses system
Sales person can reimburse all allowable expenses in given period. Under this
method manager should know how many sales person in the John keells office
Automation (Pvt) Ltd.
John keells office Automation (Pvt) Ltd. What are the arias they have to
cover? What are they allow expenses, what are not. there sales team probably
monthly expenses.(E.g. sometimes sale person have to visit Anuradapura or
Jaffna they have to stay 1- 5 days at a hotel. they should show their superior to
periodic expenses report.)
Note: This company not use the honor system reimbursement and
Expenses Quota system
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8.5. Reimbursement of Automobile expenses

This companys sales people are provide company maintain vehicle and use
their own vehicle for sales staff, and reimburse the expenses in this method.

9.0. Territory Assignment

9.1 Territory management of John Keells Office Automation
Sales territory management is the process of planning, implementation, and control of
salespersons activities with the goal of realizing the sales and profit potential of their
assigned territories.
Sales territories can be formed on the basis of: Geographical location, Industry, Product
use, Method of buying, Channels of Distribution, Sales potential, Work load in territories,
Arbitrarily & Rational basis.
In this company management has been assigned territories to the sales persons according
to the geographical location basis. There are several geographical areas were arranged to
the sales people as follows.

Colombo Zone
Zone 1 : Colombo 01,11,13,14,15
Zone 2 : Colombo 03,04,05,06,07 (up to Kohuwala & Nugegoda )
Zone 3 : Colombo 02,08,09,10
Katunayaka Area (Greater Colombo)
Peliyagoda to katunayaka
Peliyagoda to Miriswatta
Peliyagoda to Kaduwela
Biyagama Area
Biyagama to Miriswatta
Nugegoda to Avissawella
Kaduwela to Horana
Battaramulla Area
Rajagiriya to Kaduwela
Malabe to Godagama
Kotte to Nugegoda
Negombo Area
Kurunegala Area
Kandy Area
Ampara Area
Badulla Area
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Galle Area
Anuradapura Area
Jaffna Area

Management has been appointed sales executives and area sales managers to above
territories as to achieve the company goals through the talents of above people. There
are 16 area sales managers as Assistant Managers and 27 sales executives in the
company who were assigned to different geographical areas. Following diagram help
to identify the territory assign of john keels office automation (pvt) ltd.

Colombo zone

: 1 Assistant sales manager

6 Sales Executives

Greater colombo zone

: 1 Assistant sales manager

3 sales executives

Negombo area

: 1 Assistant sales manager

: 2 Sales executives

Kurunegala area

: 1 Assistant sales manager

: 1 Sales executive

Kandy area

: 1Assistant sales manager

: 1 Sales excutive

Badulla area

: 1 Assistant sales manager

: 1 Sales executive

Galle area

: 1 Assistant sales manager

: 1 sale executive

Anuradhapura area
Jaffna area

:2 area sales manager

4 sales executives

Ampara area

: 1 Assistant sales manager

: 1 Sales executive
There are one assistant sales manager and two sales executives for POS products and 6
area sales managers under 2 regional managers with 6 sales executives for Samsung
mobile phone operations.
Every area sales manager has several sales executives. Outsourced dealers are under sales
executives. They are not connecting to the permanent carder of john keels. The above
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territories have been assigned based on product knowledge, market knowledge, past sales
performance, communication, selling skills. Although his/her social, cultural, physical
characteristics are very important for enhance of performance in the territories.
John keels Company has been given remarkable benefits to their sales staff in order to get
maximum commitment from them.

9.2. Geographical Reach & Coverage

The entire geography of Sri Lanka is
covered by a well appointed network
of 38 resellers for Office Automation
(OA) products. The company is
rapidly establishing separate reseller
network for its Mobile Phones and IT
product lines.

The OA resellers

engage in product sales and service

activities. This model of business has
proven to be very successful and
enables a client to get the same
facilities,

benefits,

support

and

services across the country. The

Republic of Maldives is covered by
one dealership responsible for the
entire archipelago. JKOA plans to
strengthen its presence in Maldives as
a business expansion this year.

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10.0. Performance appraisals

10.1. Performance appraisal of the Sales Department - John Keels Office and Automation
(Pvt) Ltd.
A Performance appraisal is a function to attract and generate the most appropriate and
satisfied workforce in an organization. The immediate supervisor or the head of the
department is responsible to conduct the performance appraisal of a certain employee.
A performance appraisal benefits a sales department especially because the management
could judge the employees knowledge of the current market conditions and also they
could make a self evaluation of the effectiveness of their strategies. At the same time, the
management would be able to offer perks to the employee at the right time so that
employees are retained within the organization for a longer period of time. Examples are
salary increments, promotions, bonuses, foreign tours for target achievement, further
training & development etc.
John Keels Office and Automation (Pvt) Ltd. conducts their performance appraisals at the
end of each financial year. At the Sales department, the Sales Managers, Assistant Sales
Managers and Sales Executives are appraised by their respective immediate supervisors.
The employees are required to submit their achievements through the form that is
available on the company website, and it should be submitted within the allocated time
period. The form requests information on Target vs. Achievement of the previous year.
The filled up forms shall be evaluated by the respective immediate supervisors and
recommendations shall be made for the perks mentioned above.
The immediate supervisors shall pass on the forms to the head of the department after
stamping their approval. The head shall approve the forms and pass it on to the Human
Resources (HR) department. The HR department shall discuss them with the top
management and obtain the final decision.
The content of the form is more or less a questionnaire with the following options to be
chosen;
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1. Dissatisfied
2. Below Average
3. Average
4. Above average
5. Exceptional
The following are the observable benefits of the currently implemented system;
1. The appraisee can plan his work according to the targets set for the performance
appraisal.
2. The online performance appraisal does not require the appraiser and appraise to
essentially meet on appointments, so it saves a lot of time.
As in a face to face interview, The appraise doesnt have to compile unrelated
facts such as market facts, figures and dates assuming that it would be required by
the appraiser, which saves the time of the appraise.
3. The organization can directly measure and evaluate the achievement of the
employee, and it could easily identify the outstanding achievers and encourage
them to maintain their performance by offering extra incentives.
The weak points of the current online appraisal system are shown below;
1. Inability to evaluate qualitative capabilities and body language of the employee
through an online system.
2. Inability to evaluate the market potential and market share through the appraisee.
3. Inability to obtain comprehensively described proposals for Sales promotions,
Advertisements, etc. and also market barriers, impact level of competitors and
customer fulfillment.
The current online appraisal system has its own pros and cons, and it would certainly help
if some sort of face to face communication is also added to the appraisal process to
enhance its effectiveness.

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11.0. Recommendations and suggestions

There is some week areas could be identified in this organization.
When planning and forecasting they dont consider the market potential
and as recommendation they should monitor and analyze the market and
sales potential according to the products.
They dont analyze and compare the wins and losses with their
competitors. As a suggestion they should analyze the market activities and
they could take actions against them and also they can identify their
market position.
We suggest the company to add the selection examination method to their
selection procedure and for the selection of managerial positions
assessment center is recommended.
We suggested the company to test the health condition of the candidates to
avoid the risk.
It is recommended to the company that to recruit people from relevant
industry only.
Recommend the company to maintain the skill inventory to recruit
internally.
Recommend the company to follow the same training methods.
Assign permanent staff for ground level positions as sales people.
Better to assign territories not only for geographical basis, but also other
basis.
Better to appoint some area sales managers and sales executive staff as
company can cover the all the territories firmly and doing future activities
as well.
Better to introduce updated technology for sales staff to manage their time.
Better to remove outsourced people from the company and get maximum
commitment from permanent staff.

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12.0 References
Official Website www.jkoa.com
Interviews:
Muditha Roshantha Sales Manager (0112313000/0777789867)
Sameeul Aleem Asst. Sales Manager Colombo (0112313000/0777278472)
Anushi Paskuel Human Resource Executive (0112313000/0772073768)

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13.0 Appendix
Contract agreement of John Keells Office Automation

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