Professional Documents
Culture Documents
Sales Force Managment
Sales Force Managment
3/2/99
Discussion Questions
What is the best way to motivate a salesforce? How can you systematically design a motivation system?
Glengarry Glen Ross & the impact of the sales manager on motivation The impact of role stress
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Examples:
External Stable: External Unstable: Internal Stable: Internal Unstable:
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Expectancy Principle: salespeople choose a level of effort based on the expected payoffs of alternative effort levels
Most popular model of motivation (at least among sales force researchers)
Examples:
Ej Vj Mj 48 40 8 Level of Performance If j=$200,000 in sales If j=$300,000 in sales If j=$400,000 in sales
Valence/Value: Vj
Valence is a composite of the utility you derive from the suboutcomes (consequences) that accompany achieving level j of performance These might include:
more pay, promotion, liking & respect, lack of leisure time, personal growth security, sense of accomplishment, recognition, hurting personal life
Outcomes can have negative utility/valence Obviously the list could be longer & vary across individuals 10
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Motivators
Positive Motivators
Commission Recognition Acceptance Respect Trust Achievement Pride
Negative Motivators
Fear Intimidation Revenge Obligation Social Comparison (one-up)
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Key:
reduce role stress arising from role ambiguity & role conflict
Tools:
training: expectancies evaluations, reviews: expectancies, instrumentalities communication, participation: instrumentalities selection: hire SP whose Vis match company suboutcomes
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How to Motivate
Define each employees motivating factors and provide an environment that incorporates those factors Praise performance Address poor performance Set goals & clearly communicate expectations Share your vision and include your team in creating it
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Quantified information is valuable at both the aggregate level and the individual level
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Role Stress
A primary influence on how salespeople perform is their perceptions of the demands placed upon them A role is a prescription:
it tells you the activities and behavior that are expected of anyone in a position
Role partners
communicate expectations pressure salespeople to meet them
A role partner is anyone with a vested interest in how a salesperson does the job, such as:
the boss, the customers, other executives, other salespeople and support people, people who are significant in the sales reps 20 personal life
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Leading to:
Motivation to work harder: intensity, persistence
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Non-traditional atmosphere
Participate leadership Emphasis on intrinsic rewards & motivation people work because selling satisfies them with:
challenges pride in serving customers pride in skills
Warm Culture
informal sense of shared values identify with company long-term employment
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Motivating
A motivator is one who can understand an overall goal and inspire others to make a personal commitment to this goal 5 ways to provide a motivating environment
Participation: involvement in decisions that affect the team Environment: climate for success, creativity Recognition: giving credit, praise, rewards Knowledge: having it, communicating it Style: use appropriate style for each situation:
coaching, supporting, delegating, directing
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