Sales Management 11Sales Management 11

Sales Management Leadership and Supervision

LeadershipLeadership

Using influence with other people through communication to achieve goals/objectives.

Like moving a rope: easier to pull than push. Dwight D. Eisenhower

FOLLOW ME!!

SupervisionSupervision

Routine, Day-to-Day control

PART of Leadership, not all of it

Variables Related to Variables Related to Performance and Job Performance and Job SatisfactionSatisfaction

Variables Related to Variables Related to Performance and Job Performance and Job SatisfactionSatisfaction

Task-Specific Self-EsteemLinked to improved performance and job satisfaction

Organizational CommitmentA psychological bond to the organizationDemonstrated by behavior over time

FormalizationThe extent to which work activity is directed by rules, regulations, & commitment

Work AlienationPsychological separation from the activities of the job

Job Involvement Strong attachment of the salespeople to the job itself

LEADERSHIP LEADERSHIP

"Our chief want is someone who will inspire us to be

what we know we could be."Ralph Waldo Emerson (1803 - 1882)

American writer and activist

Three Leadership ModelsThree Leadership Models1) Leader-Member Exchange (LMX)

a) Manager and Salesperson influence each otherb) Unique relationships with each dyad

2) Transformational Leadershipa) Leaders: charismatic, inspirational, mission drivenb) Change Agent: new ideas, new methods

3) Behavioral Self-Management (BSM)a) Self-Imposed planning, behavior, evaluation,

rewards & punishment.b) Salespeople can work w/o constant supervision,

more enthusiastic by being in control

Factors Affecting Sales Manager’s Leadership Effectiveness

Factors Affecting Sales Manager’s Leadership Effectiveness

1) Power: Manager/salespeople/others2) Situational3) Needs & wants of salespeople4) Goals & Objectives of Salespeople/Company5) Manager’s Leadership Skills

PowerPower

Expert Power: Knowledge Based Referent Power: Similarity, Friend, Role-Model Legitimate Power: Role, Position Reward Power: Ability to give reward for action Coercive Power: Ability to remove rewards or to

punish for wrong action/inaction.

Power is in the eye of the beholder.

Situational FactorsSituational Factors Traits: Personality traits of an effective leader

Behavior: Behaviors associated with an effective leader

Contingency: Interaction between situational and other factors

Situational Factors: Time constraints, the nature of

the task, and the history and norms of the organization

Needs & Wants of SalespeopleNeeds & Wants of Salespeople

Important if not using coercive power Each person has unique in needs

Some respond to $Some to praiseSome to challenge

Although difficult, try to meet individual needs May be limited by span of control

Goals and ObjectivesGoals and Objectives

Life is easier if salespeople’s needs align with organization’s goals and objectives

Can learn what salespeople want by askingWorkshops, interviews, surveys

Discover their long and short term goals Show how individual goals can be achieved by

pursuing company goals

Leadership SkillsLeadership Skills

Anticipation/Seeking Feedback, MBWA Diagnostic Skills: Problem vs. Symptoms Selection/Matching: Use right tool @ right time Communication

Influence Strategies: Threats, Promises, Persuasion, Relationships, and Manipulation

Communication Mechanisms: Phone, Fax, Memo, Report, Intranet, Email, List-Serve, Cell, Voice Mail, etc.

Coaching & EthicsCoaching & Ethics

CoachingRole Model/DevelopmentOutcome and Cognitive Feedback

Meeting Ethical/Moral Responsibilities Immoral, Amoral, Moral Management (See Exhibit 7.5, pg. 197)

Take a we approach Address only one or two problems at a time Don’t focus on criticizing poor performance, reinforce good

performance Foster involvement Recognize differences in salespeople and coach accordingly Coordinate coaching with more formal sales training Encourage continual growth and improvement Insist salespeople evaluate themselves Obtain agreement with respect to punishments and rewards Keep good records

CoachingThe continuous development of salespeople through supervisory feedback and role modeling. Suggestions for affective coaching include:

Approaches to Management Ethics I

Immoral ManagementIntentional and consistent management activity conflicting with what is moral (ethical).Exploits opportunities for corporate gain. Cuts corners when it appears useful.Seeks profitability and organizational success at any price.Selfish. Management cares only about its or the company’s gain.

Approaches to Management Ethics IIAmoral Management

Management activity that is neither consistently moral or immoral . . . Decisions lie outside the sphere to which moral judgments apply.Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal mandates if caught and required to do so.Seeks profitability. Other goals are not considered.Well-Intentioned but selfish in the sense that impact on others is not considered.

Approaches to Management Ethics IIIMoral Management

Management activity conforms to a standard of ethical or moral behavior.Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened self-interest.Seeks profitability within the confines of legal obedience and ethical standardsManagement wants to succeed but only within the confines of sound ethical precepts.

Ethical & Moral ResponsibilityEthical & Moral Responsibility Code of Ethics

PersonalCorporateProfessionalSocietal

Morally Questionable Managerial ActsNon Role Acts: Cheating on expense reportRole Failure: Not acting as you shouldRole Distortion: Bribery, Price Fixing

Meeting Ethical andMoral Responsibilities

Nonrole Against the firm • Expense account cheating• Embezzlement• Stealing supplies

Type Direct Effect Examples

RoleFailure

Against the firm • Superficial performance appraisal

• Not confronting expense account cheating

• Palming off a poor performer with inflated praise

NonroleNonrole

Role FailureRole Failure

Meeting Ethical andMoral Responsibilities

Type Direct Effect Examples

Role Distortion

For the firm • Bribery• Price fixing• Manipulation of suppliers

Problems in LeadershipProblems in Leadership

The Constant Criticizer

Problems in LeadershipProblems in Leadership

Conflicts of Interest - Boundary Spanners @ Risk

Chemical Abuse – Affects professionalism

Disruptive Personnel – Jerks, Mavericks, Apathy

Termination – Unpleasant, but necessary @ Times Sexual Harassment – Remarks, Comments, Threats,

Jokes, Physical/Visual Actions, Innuendos (Currently 1/3 of all EEOC complaints are for sexual harassment.)