Business Case - Belton Industries

Belton Industries, Inc.

Manufacturer of Toys and Bicycles

Selecting Soles Personnel

Albert Thompson, general sales manager for Belton Industries, Inc., faced a problem or high turnover of sales personnel. He was led to believe that some¬thing was wrong with the selection process and that the selection procedure should be evaluated.

Belton manufactured a wide tine of children's toys and bicycles. Its sales organization consisted of 110 salespeople operating out of seventeen branch sales offices. The branch sales managers reported directly to Thompson. Belton products were selectively distributed to department stores, discount houses, toy stores, bicycle shops, and general hardware stores.

Belton Industries recruited its sales personnel from colleges and universi¬ties throughout the country, as well as from other sources. The branch sales managers performed the initial screening interview at college placement centers, and at the branch sales offices in the case of applicants from other sources. The preliminary interview served as an initial "screen" to eliminate obviously unqualified applicants. At the initial interview, applicants judged as "possibili¬ties" were handed a standard application form requesting information such as personal history, education, previous experience, and the like. When the appli-cant returned the form, the branch sales manager contracted business and per¬sonal references by mail. As soon as references responded, a second interview was scheduled.

In the second interview, the applicant was given considerable information about the company, its history, organization, record, products, markets, and, in particular, the specific nature of the sales operation. The branch manager probed the applicant's habits, attitudes, and motivations and very often, to get a measure of an individual's ability to react to the unexpected, handed the applicant a pen, ashtray, or other handy object and asked him or her to make a sales presentation "on the spot." In addition, the branch sales manager fielded any questions that the applicant might ask.

Immediately upon completion of the second interview, the branch man¬ager completed a rating sheet. At this time, he or she forwarded to the general sales manager all materials compiled on the applicant, including the application form, reference letters, rating sheet, and a statement recommending acceptance or rejection of the job candidate. The general sales manager decided whether or not to hire the applicant, then notified the branch sales manager, who, in turn, notified the applicant.

The general sales manager believed that the Belton sales force turnover rate was excessive and cited a recent study by a trade association that reported the industry's average sales force turnover was 15 percent, compared with Belton's sales force turnover of 25 percent.