Upload
rohitbatra
View
224
Download
0
Embed Size (px)
Citation preview
8/14/2019 sdm-performance evaluation.ppt
1/21
SALESMANAGEMENT
Performance Analysis
8/14/2019 sdm-performance evaluation.ppt
2/21
Purposes of Salesperson
Performance Evaluations
1. To ensure that compensation and other reward
disbursements are consistent with actual
salesperson performance
2. To identify salespeople that might be promoted
3. To identify salespeople whose employment
should be terminated and to supply evidence to
support the need for termination
8/14/2019 sdm-performance evaluation.ppt
3/21
Purposes of Salesperson
Performance Evaluations
4. To determine the specific training and
counseling needs of individual salespeople and
the overall sales force
5. To provide information for effective human
resource planning
6. To identify criteria that can be used to recruit
and select salespeople in the future
8/14/2019 sdm-performance evaluation.ppt
4/21
Purposes of Salesperson
Performance Evaluations
7. To advise salespeople of work expectations
8. To motivate salespeople
9. To help salespeople set career goals
10. To improve salesperson performance
8/14/2019 sdm-performance evaluation.ppt
5/21
Principles of evaluating sales personnels
performance
Principles applicable to sales evaluation differ largely depending upon the factorsgoverning a company at the micro level or an industry business environment at a macro
level.
Some are elucidated here.
1. Pragmatic
2. Transparent
3. Realistic
4. Positive in spirit
5. Informative
6. Participative
7. Objective
8. Flexible
9. Specific
10. Cost Effective
11. It should be a means and not an end
8/14/2019 sdm-performance evaluation.ppt
6/21
Methods of evaluating sales personnel
performance
Ranking Method: It is the simplest method of rating system. In this
method we give the rank to every employee on the basis of their job
performance.
Graphic Rating Scale: In this method the management places a
checkmark on a form next to the word or phase describing the degree of
merit for each of several traits such as quality of work, quantity of work,
dependability, attitude and so worth. A major drawback of Graphic rating
is that the words like excellent and poor mean different things to
different people.
Forced dis t r ibut ion Method:In this method rated are distributed along
the given scale and fixed percentages of employees are assigned to the
best and worst ends of the scale and to the middle bracket.
Check List Method:In this method a list of statement is prepared which
describe the performance of an employee. Each statement have a
definite scale rate.
8/14/2019 sdm-performance evaluation.ppt
7/21
Cont.
Crit ical incident Method: In this method every
supervisor prepare a record notebook in which
all the successful and poor performance of an
employee is mentioned.
Field Review Method: In this method the
supervisors are interviewed by an expert
belonging to the personnel department. The expert
questions to the supervisor to obtain information
about each employee
8/14/2019 sdm-performance evaluation.ppt
8/21
DEVELOPINGANDMANAGINGSALES
EVALUATIONPROGRAMME
Setting standardsof performance
Setting Actualperformance
Comparing actualperformance with
standards
Taking correctiveactions
8/14/2019 sdm-performance evaluation.ppt
9/21
STEP-1
SETTINGSTANDARDSOFPERFORMANCE
Guidelines for performance criteria
1. Measurable
2. Practical
3. Relevant4. Discriminating
5. Stable
8/14/2019 sdm-performance evaluation.ppt
10/21
1. SETTINGPERFORMANCESTANDARDS
Quantitative Performance Standards:
a) Quotas:
Quantitative objective expressed in absolute terms
The terms can be Value or product units or combin. Quotas specify desired levels of accomplishment for sales
volume, gross margin, net profit, performance of non selling
activities
Realistic & Attainable
8/14/2019 sdm-performance evaluation.ppt
11/21
8/14/2019 sdm-performance evaluation.ppt
12/21
QUANTITATIVEPERFORMANCESTANDARDS
c) Territorial Net Profit or Gross Margin Ratio: Needs for selling a balanced line & for considering relative
profitability (Different Products or Individual Customers)
Emphasis on more profitable products & devote more time
& effort to potential accounts Neglect the solicitation of new accounts or performance f
new products
8/14/2019 sdm-performance evaluation.ppt
13/21
8/14/2019 sdm-performance evaluation.ppt
14/21
QUANTITATIVEPERFORMANCESTANDARDS
f) Call Frequency Ratio:Dividing the number of sales calls on a particular
class of customers by number of customers in that
class
Directs the selling effort to more profitable
accounts
g) Calls per day:
Standards for calls are set up individually fordifferent territories, taking into account territorial
differences as to customer density, road & traffic
conditions and competitor's practices
8/14/2019 sdm-performance evaluation.ppt
15/21
QUANTITATIVEPERFORMANCESTANDARDS
h) Order Call Ratio:
Effectiveness of sales person in securing orders
Dividing number of orders secured by number of callsmade
I) Average Order Size:
Controls the frequency of calls on different accounts Different standards for different sizes & classes of
customers
8/14/2019 sdm-performance evaluation.ppt
16/21
QUANTITATIVEPERFORMANCESTANDARDS
j) Non Selling Activities: Standards for non selling activities such as obtaining dealer
displays, cooperative advertising contracts, training
distributors personnel, and goodwill calls on distributors
customers
8/14/2019 sdm-performance evaluation.ppt
17/21
QUALITATIVEPERFORMANCECRITERIA
a) Job Factors: Product Knowledge
Awareness of customer needs
Relationship with customers
Service Follow Up
b) Personal Factors:
Punctuality
General Attitude Dress & Appearance
Cooperation
Adaptability
8/14/2019 sdm-performance evaluation.ppt
18/21
STEP-2
RECORDINGTHEACTUALPERFORMANCE
Field Sales Reports
To provide data for evaluating performance
To help the sales person plan the work
To record customers suggestions & complaints
To gather information on competitors activities To report changes in local & business conditions
To keep mailing list updated for promotional & catalogue
materials
To provide information requested by marketing research
8/14/2019 sdm-performance evaluation.ppt
19/21
STEP-3
EVALUATION- COMPARISONAGAINSTACTUAL
Issues Involved:
Differences in Individual Territories
Sales Potentials
Impact of Competition Personalities of Sales Personnel & their
Customers
Comparison of Both qualitative & quantitativedata
8/14/2019 sdm-performance evaluation.ppt
20/21
DETERMINANTSOFSALESFORCE
PERFORMANCE
Internal factors External factors
Motivation Environmental factors
Skill level Organizational factors
Job satisfaction Sales management functions
Role perception
Personal factors
Ego drive
Empathy
8/14/2019 sdm-performance evaluation.ppt
21/21
STEP-4
TAKINGACTION
No Deviations/Low Significance deviations:
No Action Required
Highly significant Deviations:
Adjust Performance to Standards
Revise the policy or plan or strategies
Lower or raise the objectives or standards