Chapter 4
Organization and Management

Management is the Brain of the Organization

*   Management organizes and directs the firms activity

*   Management establishes the firm's goals and directs the manner in which those goals are attained--labor implements those goals

Role of Management

*   Planning

*   Organization

*   Implementation (Book calls this activation)--Job descriptions

*   Control

Types of Management Functions

*   Line functions are direct functions of the firm's purpose; such as the listing and selling function.

*   Support functions are necessary functions not directly involved in the firm's purpose, such as secretarial, and other "house keeping".

*   Specially support functions are professional activities such as accounting, legal counsel, etc. These are often contracted out.

Structure of Offices

*   Independent contractors: implications of independent contractors vs. employees

*   Personnel costs

*   Control

*   Government

*   Salaried staff

Extended Structures

*   Independent contractors employing personal staff [Top producers sometimes hire their own support staff. Discussion should also cover problems with office space and resources, as well as the relationship with the broker,when this option is used.]

*   Cooperating independent contractors [Sometimes salespersons can better use their talents when they job share. For example, one associate may have a terrific telephone technique and be good with detail work, while another may be a great negotiator and closer. Together they make a good team.]

Broker's Services to Independent Contractors

*   Motivation

*   Training

*   Referrals

*   Office space

Support Services

*   Data services

*   Secretarial

*   Reception

*   Photocopying

*   Record keeping

*   Advertising

*   Computer services

Data Support Services

*   MLS

*   OMNI

*   Plat Maps

*   REDI

Small Office Structures

*   Broker/Owner

*   Sales Manager

*   Secretary

*   Salespersons

Large Office Structures

*   Broker/Owner

*   Sales Manager

*   Secretary

*   Salespersons

*   Finance Manager/Accountant

*   Closing Manager

*   Mortgage Manager

*   Administrative controls [How does the firm structurally monitor performance and quality control?]


*   Top down

*   Sales meetings

*   House organs

*   Memos

*   Telephone calls

*   Private meetings

*   Solicitation

*   Bottom up

*   Suggestion boxes

*   Reporting to supervisors

*   Reporting above supervisors

Structural Divisions

*   Residential

*   Single-family

*   Rental

*   Commercial

*   Acreage

*   Apartments

*   Shopping Centers

*   Office

*   Industrial

*   Property management

*   Leasing

Office Size Issues

*   Office space per person

*   Optimal number of people per manager

Personnel Management

*   Post-employment forms and procedures

*   Personnel files

*   Evaluation

*   Personnel Problems

Post-employment Forms and Procedures

*   Forms should include:

*   Personal information--Birthday, anniversary, family names

*   Insurance information

*   Office orientation--welcoming party?

*   Scheduling (They must give you their schedule rather than you give them one.)

Keeping a Personnel File

*   Copy of their license

*   Copy of their SS card

*   INS form certifying citizenship


*   Frequent Informal Meetings

*   Periodic Formal Evaluations

*   Three month on new hires

*   Annual thereafter

*   Evaluations should begin with positive traits and end with areas that need approval.

Handling Problems

*   Additional training may be needed.

*   Document problems and action taken in personnel file.

*   Warning if problem is severe

Termination of Personnel

*   Most unpleasant task

*   Policy manual should specify offenses which result in immediate dismissal.

*   Should be done in person

*   Should not be done in anger

*   Should be done when embarrassment is minimized

*   Give reasons

*   Broker should be prepared to clean up unfinished business

*   Desk cleaned out immediately and keys surrendered

*   Other personnel should be notified with care