Motivating and leading the sales force

1

Motivating and Leading the Sales Force

2

Motivating the Sales Force

1. Maslow Physiological: Fin Comp., AC, Cafeteria Safety & Security: Job security, Fringe

Benefits Love & Belongingness: Liking &

Respect from Boss / Peers / Customers Self Esteem: Job title, responsibility,

recognition and promotion Self Actualization: Challenging job,

Creativity and achievement in work

3


2. Herzberg Hygiene Factors: Presence does not

motivate, absence de-motivates or negative impact (work conditions, job security, salary, interpersonal relations, company policies)

Motivational Factors: Absence causes dissatisfaction : Presence motivates (Responsibility, promotion, Recognition, Achievement)

HF corresponds to Maslow’s 1,2,3 while MF corresponds to Maslow’s 4 and 5.

4


3. Goal Setting Theory – MBO (Edwin Locke): People have needs / aspirations, they set

goals, go about getting these goals Higher goals – higher outputs Set goals for salespeople:

Plan activities better,

Learns to prioritize manage time Goal should be clear & not too difficult

to achieve

5


4. Expectancy Theory (Victor Vroom)

Motivation depends on 3 factors = f (e × v × i)

e = expectations (expected outcomes)

v = valence (extent to which outcome is valued by the individual)

i = instrumentality (probability that the effort spend by the individual will help in obtaining the outcome)

Used to study sales force management problems particularly when motivation decreases because of realignment of Sales Territory.

6


5. Job Design Theories Correlate motivation with Job Satisfaction JS = Pleasure felt in one’s experiences in a

job JS created by

Job Enrichment: Vertical expansion of a jobs involves addition of more tasks in the job, more responsibilities

Job Rotation: Assigning employee to alternative jobs, relieves monotony

Job Enlargement: horizontal expansion by adding more tasks with no increase in responsibility, prevents employee from getting board .

7

Motivating and Productivity

Productivity = Output / Input

Sales Productivity = Sales Revenue / Sales Expenses

Difficult to Assess (Time is a factor)

Sales productive is a function of Work environment, Work Methods, Motivation, Skills

Some methods:Make Working FunQuotas, Contests, Rewards, Comp Plans

8

Personal Characteristics

i. Competitor: Thrive on beating competition: Win-Lose Situation: Motivated by contests, quotas

ii. Achiever: Sets his own goals, does not require SM to motivate; not bothered about credit; good team players; SM has to assign continually challenging tasks.

iii. Ego-Driven: Not bothered with rewards/perks. Consider themselves best in organization; like to be given importance & opportunities for decision making; make good coaches/mentors; super performers if their trait of idolizing them is exploited.

9

Personal Characteristics

iv. Service Oriented (Empathy & ability to build relationships): May not get big business but can keep customer happy & helps company retain territories against competition.

Neglected in motivation, SMs give more important to sales quotas, but given the important of CS, big mistake to ignore (iv).

10

Motivational Mix

Sales Culture Sales Training Leadership Basic Compensation Special Financial Incentive Non Financial Rewards Performance Evaluation

11

20 30 40 50 60

Exploration(1)

Establishment(2)

Maintenance(3)

Disengagement(4)

Age

Gro

wth

in C

aree

r

12

1. Exploration: Lacks Work Ex; concerned with finding right occupation rather than lifelong commitment; tries to gain acceptance of peers; faces stress because of choice of careers; job hopping common.

2. Establishment: Settles down in an occupation and advances, pressure to succeed & advance in one’s career; professional success & promotion are desired; also demands in terms of family responsibilities & health concerns; uncertainty as to whether organization has suitable position; Reluctance to go into Sales Management.

13

3. Maintenance: Psychological Strain due to awareness of physical aging, threat of technological obsolescence, limited career growth; holds on to his achievements; adopts mentoring approach; for SM difficult to motivate (3) sluice promotions do not motivate.

4. Disengagement: Starts planning for retirement

14

Leading the Sales Force

Leader (Energizes & Motivates) Achieves almost impossible goals Innovative & Risk Taking Motivates followers to utilize potential &

perform best..

Manager (Manages) Make sure process / system works (e.g. report

in time)

15

Qualities for Sales Manager – Effective Leader

a) Clarity: Communicates clearly

b) Consistency: In communication expectations, regularity of sales meetings, appraisal

c) Urgency: Make Sales Team take matters seriously; customer service

d) Assertiveness: Assert authority so Team obeys

e) Ego Drive: Has to feel satisfaction by persuading others to take action.

16

Qualities for Sales Manager – Effective Leader

f) Ego Strength: Has to have resilience to take rejections; should influence team to think positive

g) Risk taking ability: calculated risks pay off

h) Innovativeness

i) Empathy: Sense the feelings of others, address the concerns of his employees.

j) Eye for talent: Particularly important for hiring people.

17

SMs can influence subordinates by wielding

5 types of Influencing Power

A. Expert Power: Expertise of a person in authority; thru knowledge, information, skill in an area… cannot be delegated.

B. Referent Power: Attraction a person has for another; can be friendship, a desire to identify with successful, famous.

C. Legitimate Power: Position held gives the right to influence others & command obedience; based on societal and institutional acceptance of the relationship.

18

5 types of Influencing Power

D. Reward Power: Due to authority to confer rewards on the other.

E. Coercive Power: Due to individual’s perception that another person has the right to confer reward or punishment; has a negative connotation.

19

Leadership Styles

Traditional styles

i. Autocratic: Gives orders, expects obedience.. Ok if SP are new / lack experience

ii. Bureaucratic style: Abides by all rules, regulations.

iii. Consultative style (Participative / Supportive) consult colleagues before taking decision, invites views / suggestions

iv. Democratic: Like (iii) but decision taken on consensus suitable for concentrated, small sales force.

v. Laissez faire: Sets goals & gives them total freedom to manage their accounts.

20

Modern Styles

i. Transactional Leadership (Sales Manager – Person): Exchange process implied agreement that SM will reward SP for attaining certain level of performance.

ii. Transformational Leadership: Identifies latent needs in people, desires, wants develops them as strengths, and persuades SPs to achieve their objectives. Motivates SPs, intellectually stimulates by encouraging them to think creatively, eg. Mary Kay.

iii. Situational Leadership: Leadership style contingent on style be faces.

21

Skills Essentials for a Leader

i. Delegation Skills

ii. Communication Skills

iii. Team-building Skills

iv. Administrative Skills

v. Interpersonal Skills

Documents

Motivating and leading the sales force