7 Salesperson Performance: Motivating the Sales Force
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
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Salesperson Motivators
Source: HR Chally Group (2007).
Novel situations Opportunities to meet
people Participative style Depth of required expertise Minimal configuration Sharing expertise
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Understand motivation process Discuss effect of personal
characteristics on salesperson motivation
Understand how individual’s career stage influences motivation
Discuss effect of environmental factors on motivation
Discuss effect of factors inside company on motivation
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Psychological Process of Motivation
Individual’s choice to: Initiate action on a task Expend a certain amount of
effort on that task Persist in expending effort
over time Expectancy theory
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The psychological determinants of motivation
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Bases for Motivation
Expectancies – perceived linkages between more effort and improved performance
Instrumentalities – perceived relationship between improved performance and increased rewards
Valence for rewards – perceived intrinsic value of the rewards
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Expectancies
Salesperson’s perceived link between job effort and performance
Estimated probability that increased effort leads to improved performance
Accuracy of expectancy estimates how clearly salesperson understands relationship between effort and achievement
Magnitude of expectancies – perception of ability to control required performance
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Instrumentalities
Link job performance and available rewards
Estimate of likelihood an improvement in performance will lead to a specific reward
Accuracy of Instrumentalities - perceptual clarity of understanding relationship between improvement, achievement and available rewards
Magnitude of instrumentality - the perceptual understanding that the salesperson can control or influence his or her own job performance
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Valences for Rewards
Perceptions of desirability of receiving increased rewards through improved performance
Other rewards may equal or exceed the value of increased financial compensation
The kinds of rewards deemed most effective for motivation varies per individual
Satisfaction with current rewards depends upon perceived value
Model Predicts Performance?
Model predicts motivation Motivation only one
determinant of performance Motivation may explain 40% of
performance level How is motivation affected by
Personal characteristics? Environmental conditions? Policies and procedures?
The psychological determinants of motivation
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Personal Characteristics Affecting Motivation
Satisfaction with current rewards
Demographic variables Job experience Psychological variables
Personality traits Attribution of meaning to
performance
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Satisfaction
Workers dissatisfied with rewards value lower-order rewards
High-order rewards valued more highly after lower-order needs have been satisfied
Salespeople satisfied with their current income (a lower-order reward) assign lower valences to earning more pay
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Demographic Characteristics
Older, more experienced salespeople obtain higher levels of low-order rewards
Satisfaction with current level of lower-order rewards influenced by responsibilities to be satisfied
More formal education increases desire for higher-order rewards
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Job Experience
More experience provides Clearer idea of how effort affects
performance Understanding of how superiors
evaluate performance Understanding of how certain
performance leads to rewards Magnitude of expectancy
perceptions relates to experience
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Psychological Traits
Affect motivation Traits
High achievement need Internal locus of control Verbal intelligence General self-esteem Task-specific self-esteem
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Career Stages and Motivation
Exploration – lack of assurance Establishment – selection of
selling as an occupation and desire for career success.
Maintenance – seeking to retain present position, high status, and achievement
Disengagement – preparation for retirement and possible loss of self-identity
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Career Stages and Motivation
Exploration – lack of assurance Establishment – selection of
selling as an occupation and desire for career success
Maintenance – seeking to retain present position, high status, and achievement
Disengagement – preparation for retirement and possible loss of self-identity
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Plateauing
Early disengagement Causes
Lack of a clear career path Boredom Failure to manage the person
effectively Solutions
Clearly defined career path Promotions within sales force Job environment
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Solutions for the Plateaued Salesperson
Talk with salesperson about problem Discuss reasons and possible
solutions Conduct motivations sessions Manage, lead and communicate Cut salesperson’s responsibilities Assign to a new territory Inform rep on his/her responsibilities Provide time off
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Environment and Motivation
Territory potential and strength of competition impact performance, perceptions, and motivation
Understanding how and why salespeople perform differently under varying environmental circumstances guides compensation and management policies
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Incentive and Compensation Policies
Policies concerning higher-order rewards can influence desirability of such rewards
Preferential treatment for “stars” may reduce morale
The range of financial rewards may influence valences of additional financial rewards
Earnings opportunity ratio Total financial compensation of the
highest paid salesperson compared to that of the average in a sales force
Higher ratio = higher valence