Executive Summary
To create long-term and sustainable successful relationships to key customers (Key accounts) are one of the main figures in successful business in industrial sales and marketing. To solve this challenge special Key Account Managers with special key qualifications are necessary. To select and recruit these Key Account Managers the tool of the Assessment Centre is helpful. Standardized Assessment Centre does not lead to a selection of the most of the key qualifications of Key Account Managers, because no standardized tests exist. Therefore companies using the Assessment Centre method to select Key Account Managers have to design the Assessment Centre in that kind that it measures the necessary key qualifications and tasks. All the necessary activities regarding the pre-phase of contractual conclusions, like the Assessment Centre to the selection of the right person, develop Transaction costs which can have an impact to contractual transaction after a decision as well. How to design the AC to measure the key qualifications of Key Account Managers and to achieve by this way a minimization of the TAC is the main question answered in the assignment.
Table of Contents
1 Introduction
2 Transaction costs theory
3 Key Account Management
3.1 Term, importance, basic principle, and goals
3.2 Task spectrum and instruments of the Key Account Manager
3.3 Demarcation of the KAM from conventional sale
4 Assessment Centre
4.1 Term, history, and ranges of application
4.2 Characteristics and participants
4.3 Components of the AC
5 Assessment Centre to select Key Account Managers
5.1 Selected relevant TAC of the AC with the selection of KA-M
5.2 Some aspects of application of the AC to reduce TAC
6 Conclusion
Objectives and Topics
The primary objective of this work is to explore how the Assessment Centre (AC) method can be optimized for the selection of Key Account Managers (KA-Ms) while minimizing transaction costs (TAC). The study investigates the specific qualifications required for effective Key Account Management and integrates transaction cost theory to evaluate the recruitment process and its long-term organizational impact.
- The theoretical foundations of transaction costs and their relevance to personnel selection.
- Comprehensive analysis of Key Account Management (KAM) roles, tasks, and strategic goals.
- The methodology of Assessment Centres, including their historical development and practical application.
- Evaluation of the AC as a tool for measuring specific KA-M qualifications to ensure cost-efficient selection.
- Strategic perspectives on reducing transaction costs through precise candidate profiling and evaluation.
Excerpt from the Book
4.1 Term, history, and ranges of application
The term AC describes several testing methods, which make a simultaneous and multilayered evaluation of candidates at the same time possible. The candidates are monitored by several trained observers. Different evaluation methods are used over a longer time period and lead by evaluation of single assignments, group discussions, and role-plays in typical job situations in final to information about the suitability of the candidates for certain tasks, about their current or future needs in job-situations and about their need for further development.
The procedure of the AC originates from the military range, was developed in the early 1930´s in Germany and prescribed and used for the selection of military officers; because of other selection criteria the AC-procedure was not used during the time of the World War II. During the 1950´s the AC-procedure was used in the U.S-economical field, at first at AT&T – later at other companies in the U.S. - for evaluation and selection of High-level personnel; and took over by German companies in the 1970´s.
Application fields are the selection and guided promotion of current high-level personnel and its new generation as well as the internal and external selection of personnel with the following topics: Internal personnel selection, External personnel selection, Consultation for further education and training, Potential analysis, Development of teams, Organization of jobs and work places, Control of success.
Summary of Chapters
1 Introduction: This chapter outlines the importance of long-term customer relationships and the resulting need for specialized personnel, introducing the Assessment Centre as a tool to select these managers under transaction cost aspects.
2 Transaction costs theory: This chapter covers the historical and theoretical background of transaction cost theory, defining ex-ante and ex-post costs as crucial measures for organizational efficiency.
3 Key Account Management: This chapter details the fundamental principles, importance, and goals of KAM, while distinguishing the specific tasks of a Key Account Manager from conventional sales roles.
4 Assessment Centre: This chapter discusses the definition, history, and practical components of Assessment Centres, focusing on how they function as instruments for professional personnel diagnostics.
5 Assessment Centre to select Key Account Managers: This chapter synthesizes the previous concepts, analyzing how the AC can be specifically designed to minimize transaction costs by measuring the key qualifications of prospective KA-Ms.
6 Conclusion: This chapter provides a final evaluation, summarizing that the specialized design of ACs is essential for meeting the high requirements of KAM and achieving long-term cost reduction.
Keywords
Assessment Centre, Key Account Management, Transaction Costs, Personnel Selection, Strategic Goals, Sales Management, Cost Minimization, Human Resources, Customer Relationship, Qualification Profile, Efficiency, Ex-ante Costs, Ex-post Costs, Competitive Advantage.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the application of the Assessment Centre method specifically for selecting Key Account Managers, evaluated through the lens of transaction cost theory to ensure efficient and effective recruitment.
What are the central themes discussed in this work?
The central themes include the mechanics of Key Account Management, the theory of transaction costs (TAC), the structural components of an Assessment Centre, and the development of requirement profiles for high-level sales personnel.
What is the primary research question?
The research seeks to answer how an Assessment Centre should be designed to measure the specific key qualifications of Key Account Managers in a way that minimizes transaction costs for the enterprise.
Which scientific methodology does the author use?
The author uses a literature-based analysis, combining transaction cost theory with management concepts to derive a theoretical framework for optimizing the selection process of Key Account Managers.
What is covered in the main section of the assignment?
The main section details the theory of transaction costs, the characteristics of KAM, the operational components of ACs, and specific perspectives on how these elements interact during the recruitment of specialized staff.
How would you characterize this work using keywords?
The work is characterized by terms like Assessment Centre, Key Account Management, Transaction Costs, Strategic Personnel Selection, and Efficiency in Sales.
How does transaction cost theory influence the selection of Key Account Managers?
Transaction cost theory is used to categorize the risks and expenditures involved in hiring. By understanding these costs, companies can design ACs that focus on the most relevant qualifications, thereby preventing the high costs associated with poor hiring decisions.
What unique criteria are proposed for evaluating Key Account Managers in an AC?
The paper suggests moving beyond standardized tests to include specific competencies such as customer orientation, market and economical orientation, systematic thinking, negotiation skills, and the ability to lead cross-functional teams in multicultural environments.
Why is the demarcation from conventional sales important for this study?
It is important because the requirements for a Key Account Manager are significantly different from those of conventional salesmen; hence, standardized recruitment tools often fail to capture the strategic and relational skills necessary for successful KAM.
- Quote paper
- Dipl.-Kfm. (FH) Uwe Schindler (Author), 2008, The Assessment Centre method to the selection of Key Account Managers under aspects of the Transaction costs, Munich, GRIN Verlag, https://www.grin.com/document/92369
