SALESPERSON PERFORMANCE: MOTIVATING THE SALES FORCE

LEARNING OBJECTIVES:

Understand the process of motivation

Discuss the effect of personal characteristics on salesperson motivation

Understand how an individual’s career stage influences motivation

Discuss the effects of environment factors on motivation

WHAT IS MOTIVATION?

Getting people to contribute to their maximum effort toward the attainment of organizational objectives.

THE PSYCHOLOGICAL PROCESS OF MOTIVATION MOTIVATION – IS AN INDIVIDUAL’S CHOICE TO:

- INITIATE ACTION - EXPEND- (CONSUME)

- PERSIST -(CONTINUE

Approaches To Motivationa.) Work Performance-stress rewardsb.)Environmental-comfortable c.) Need Satisfaction-product worker

11 THEORIES OF MOTIVATION

1. Classical- Frederick W. Taylor / Money2. Human Relation-Elton Mayo/ informal

groups3. Field-Kurt Lewin/ various motivation4. Hierarchy of Needs-Abraham

Maslow/pyramid5. Needs-David Mc Clelland/power-affiliation-

achievement6. Herzberg’s 2 Factor-Frederick

Herzberg/motivator( job content)-hygiene(job context)

7. Theory x and Theory Y-Douglas Mc Gregor8. Theory Z-William G. Ouchi/cooperation

9. Expectancy -2 models ( Vroom & Porter & Lawler)

10. Equity or Social Comparison-inputs & rewards

11. E.R.G- Clayton P. Alderfer Existence, Relatedness & Growth

A salesperson’s motivation is determined by three sets of perceptions:

Expectancy= the belief that a particular level of effort will be followed by a particular level of performance (act)

Instrumentality= Level of achieved task performance will lead to various work outcomes

EXPECTANCY THEORY –SEEKS TO FORECAST OR EXPLAIN TASK RELATED EFFORT

VALENCE= VALUE OR IMPORTANCE THAT INDIVIDUAL ATTACHES TO VARIOUS WORK OUTCOMES

PROCESS OF MOTIVATION:

Expectancy

Instrumentality

Valence Outcomes

Performance

Effort

2 ASPECTS OF SUBORDINATES EXPECTANCY PERCEPTIONS:(1) MAGNITUDE –LEVEL /IMPORTANCE(2) ACCURACY- CORRECTNESS

Expectancy: (effort-energy)

Magnitude of expectancy estimates- the ability to control or influence his or her job performance

Accuracy of Expectancies estimates- the salesperson understands the relationship between effort and performance

Instrumentality: (performance-action)

Magnitude of instrumentality estimates- is the firms compensation plan.

Accuracy of instrumentality estimates - sales performance evaluation - rewards for levels of performance

VALENCE FOR REWARDS- THE INCREASED REWARDS

FROM IMPROVED PERFORMANCE.

CAN THE MOTIVATION PARADIGM PREDICT :SALESPERSON EFFORT ANDPERFORMANCE?Three determinants of motivation affected by:

(1) Differences in the personal characteristics of individuals

(2) Environmental conditions, and

(3) The organizations policies and procedures

THE IMPACT OF A SALESPERSON’S PERSONAL CHARACTERISTICS ON MOTIVATION The Individuals satisfaction

Demographic Variables

Job experience

Psychological variables

INDIVIDUAL’S SATISFACTION

whether a salesperson’s satisfaction with current rewards has any impact on the desire for more or on different kinds of rewards.

DEMOGRAPHIC CHARACTERISIC

such as age, family size, and education also affect a salesperson’s valence for rewards

JOB EXPERIENCE

o for as they gain experience, salespeople have opportunities to sharpen their selling skills and they have the ability to perform successfully.

PSYCHOLOGICAL TRAITS

o People with strong achievement needs are likely to have higher valences for such as higher-order rewards as recognition, personal growth, and feeling accomplishment.

PERFORMANCE ATTRIBUTIONS (acknowledgement/ designation)

Stable internal factors --personal skills and abilities.

Unstable internal factors – vary from time to time such as amount of effort expended or mood at the time.

Stable external factors ---the nature of the task ---the competitive situation in a particular

territory

Unstable external factors ---aggressive advertising campaign

CAREER STAGES AND SALESPERSON MOTIVATIONCareer Stages

- Exploration Stage –are often unsure about whether selling is

the most appropriate occupation for them and whether they can be successful salespeople.

- Establishment Stage – usually in their late 20s or early 30s -- have settled(decided to stay) on an

occupation and desire to build it into a successful career.

- Maintenance Stage – This stage normally begins in a

salesperson’s late 30s or early 40s. ---continuation ---preservation or care - Disengagement (disconnection) Stage- – People withdraw from their job, - ---often seeking to maintain just an

”acceptable” level of performance with a minimum amount of effort

The problem of the Plateaued (stable/ stagnation) Salesperson

- Plateaued Salespeople - – Plateauing or early disengagement, - ---is not isolated or common

- Causes of Plateauing: - A.) boredom and- B.) frustration

Ideas to Motivate the sales force:

> Accountability > Compensation > Travel opportunity > Positive Attitude > Information > Selection > Training

THE IMPACT OF ENVIRONMENTAL CONDITIONS ON MOTIVATION• Factors:

• Territory potential• Strength of competition• Salesperson’s willingness to expend

effort

• Other Factors:• Economic conditions• Competitors activities• Customer concentrations

Assessment of firm’s competitive position :

Market place ( customer)Quality of its products and servicesSelling efforts ( salesperson)

The Impact of Organizational Variables on Motivation

Supervisory variables and leadership increasing subordinates personal

rewards rewards easier to follow

( attainable) Reducing roadblocks and pitfalls

(drawback) Increase opportunities for personal

satisfaction