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Essay / Business Case - Belton Industries - 1126
Belton Industries, Inc.Toy and Bicycle ManufacturerSole Personnel SelectionAlbert Thompson, General Sales Manager of Belton Industries, Inc., faced a high turnover problem sales staff. He was made to believe that something was wrong with the selection process and that the selection procedure needed to be evaluated. Belton manufactured a wide range of children's toys and bicycles. Its sales organization was made up of 110 salespeople spread across seventeen sales agencies. Branch sales managers reported directly to Thompson. Belton products were selectively distributed to department stores, discounters, toy stores, bicycle stores and general hardware stores. Belton Industries recruited its sales personnel from colleges and universities throughout the country, as well as other sources. Branch sales managers conducted the initial selection interview at university placement centers and at branch sales offices for candidates from other sources. The preliminary interview served as an initial “screening” to eliminate obviously unqualified candidates. During the initial interview, candidates deemed “possibilities” were given a standard application form asking for information such as their personal history, education, previous experience, etc. When the applicant returned the form, the branch sales manager contracted business and personal references by mail. Once the references responded, a second interview was scheduled. During the second interview, the candidate received extensive information about the company, its history, organization, background, products, markets and, in particular, the specific nature of the sales transaction. . The agency director probed the candidate's habits, attitudes and motivations and very often, to measure an individual's ability to react to the unexpected, he handed him a pen, an ashtray or any other practical object and asked him to make a sales presentation "on site". Additionally, the branch sales manager answered any questions the candidate might have. Immediately after the end of the second interview, the branch manager completed an evaluation sheet. At that time, he or she forwarded to the General Sales Manager all compiled materials on the candidate, including the application form, reference letters, evaluation sheet and a statement recommending acceptance or rejection of the candidate. The general sales manager decided whether or not to hire the candidate, then informed the branch sales manager, who, in turn, informed the candidate. The general sales manager believed Belton's sales force turnover rate was excessive and cited a recent trade association study which reported that the industry average sales force turnover was 15 percent, compared to 25 percent turnover for Belton..