EFFECTIVENESS OF SALESFORCE MANAGEMENT ON ORGANIZATIONAL

PERFORMANCE OF DIRECT SELLING COMPANIES IN SANTIAGO CITY

A Thesis
Presented to
Faculty, College of Business Education
University of La Salette, Inc.
Santiago City, Philippines

In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Marketing Management

ANGELA MAE CATAPANG

DARREN SANGBAAN
JOHN LEE SERRANO
RENZSON PATRICIO

January 2024
 ACKNOWLEDGMENT

The researchers extend their sincerest appreciation and gratitude to all

individuals who helped and provided support, guidance, and encouragement

throughout the research process and for making this research possible.

First and foremost, the researchers would like to thank Almighty God for

continuously providing them the knowledge, wisdom, understanding, and

strength, the entire research journey.

The researchers are also thankful to their research instructor, Ms. Marilyn

P. Gaoat, DBM, to their research adviser, Mr. Jose P. Sabaulan, and to the

statisticians, Ms. Princess Jhoie Corpuz and Mr. Gemlee Baptista. The

researchers appreciate the efforts and guidance which have been instrumental in

the successful completion of this research.

The researchers are also thankful to the participants for their cooperation

throughout the data collection process, sincerest gratitude is also extended to the

managers for allowing the researchers to gather data within the company.

Lastly, the researchers would like to thank their friends and instructors for

giving them support and motivation. The researchers would also like to express

their heartfelt gratitude to their families for continuously providing financial help

and for giving strength to accomplish this research.

The Researchers
 DEDICATION

The researchers would like to dedicate and humbly express sincerest

gratitude to their parents for giving them the opportunity to go to school everyday

as they exchange their love and sacrifices, to the instructor of the course for

guiding them throughout the journey, to their friends and classmates for always

encouraging them to push through and to stand firmly, and mostly to God, for He

had provided strength, protection, knowledge, and understanding the entire

research journey.

The Researchers
 TABLE OF CONTENTS

TITLE PAGE i
ACKNOWLEDGEMENT ii
DEDICATION iii
TABLE OF CONTENTS iv
LIST OF TABLES v
LIST OF FIGURE vi
ABSTRACT vii

INTRODUCTION

Background of the Study 1

Research Questions 3
Significance of the Study 4
Conceptual Framework 4
Literature Review 6

METHODS

Research Design 14
Study Site and Participants 14
Instruments 15
Data Gathering Procedure 15
Data Analysis 16
Ethical Considerations 16

RESULTS 18

DISCUSSION 24

Conclusion 26
Recommendation 27
Limitations and Recommendation for Further Research 28

REFERENCES 29

Appendices

Appendix A – Informed Consent 32

Appendix B – Descriptive Statistics 33
Appendix C – Survey Questionnaire 35
 LIST OF TABLES

Table Page
1 Mean, Standard Deviation, and Interpretation of the Level of 18
Effectiveness of Salesforce Management as perceived by the
participants

2 Mean and Standard Deviation of the Organizational 19

Performance of Direct Selling Companies in terms of
Profitability

3 Mean and Standard Deviation of the Organizational 21

Performance of Direct Selling Companies in terms of Growth

4 Pearson Correlation Coefficient on the relationship between the 22

effectiveness of salesforce management and organizational
performance of selected direct selling companies
 LIST OF FIGURE

Figur Page
e
1 Theoretical Framework 6
 ABSTACT

Purpose. The purpose of this study is to examine the relationship of the

effectiveness of salesforce management on organizational performance of direct
selling companies in Santiago City. This study is conducted since there is little or
limited research that was carried out in the area of effective management of
salesforce and organization performance in the sector of direct selling business.

Design/Methodology Approach. This study utilized descriptive cross-sectional

survey research design. The quantitative data were collected from 95
respondents from direct selling companies who have undergone salesforce
management. The sampling method used was quota sampling. Data gathering
was done through survey questionnaires. Mean, Standard Deviation, Pearson R
Correlation were used to analyze the data collected from the survey
questionnaire.

Results/Findings. The statistical results revealed that the effectiveness of

salesforce management (recruitment & selection, training, motivation, evaluation
process) has a strong, positive correlation with the organizational performance of
direct selling companies (r = 0.744, n = 95, p = 0.001). Among the four salesforce
determinants, motivation is the most effective practice which is driven by financial
reward. Organizational profitability and growth is also attained through
motivation. When salesforce is well remunerated, it will lead to organizational
development.

Originality/Value. This study brings originality and value by offering guidance to

Direct Selling Companies on how they can improve their salesforce and maintain
a good organizational performance by implementing effective salesforce
management practices. Furthermore, the research deepens the understanding of
the intricate relationship between effectiveness of salesforce management and
organizational performance within the context of Direct Selling Companies in
Santiago City, thus enriching the existing body of knowledge for researchers and
practitioners in the field.

Keywords
Direct Selling Companies, Effectiveness of Salesforce Management, Motivation,
Organizational Growth, Organizational Performance, Organizational Profitability,
Sales Agent
 INTRODUCTION

Background of the Study

Direct selling is viewed as a practical method of providing customers with

goods and services as well as an additional source of income. Although

promoting a good or service to your friends or family may appear simple, these

direct-selling salespeople have much work to do. They will need to master the

selling approach and technique after first comprehending the product feature.

With the appropriate training and direction, especially in the modern business

world, all of these would be easier (Mahadevan & Yap, 2019).

The key to good sales force management is recruiting, selecting, training,

overseeing, motivating, and evaluating sales personnel under stated objectives,

strategy, structure, size, and compensation. Following these identified,

managerial tasks are carefully monitored and completed, which causes the

company's reputation, earnings, productivity, and sales growth rate to fluctuate

(Marenglena, 2018).

The salesforce represents a significant investment in sales organizations

as it occupies or represents a large percentage of total costs each year.

Businesses spend enormous amounts annually on salesforce training worldwide.

The question is now whether effective management of salesforce can influence

organizational performance. Using an explored quantitative method, Agboola

(2019) examined the management of salesforce and organizational performance

in the pharmaceutical industry in Kwara State. As a result, the study shows that

salesforce management significantly impacts organizational performance in

pharmaceutical companies in Kwara State. Moreover, it was concluded that

effective salesforce management could be used to achieve organizational

performance in Pharmaceutical Companies.

Effective sales force management is vital to sales-driven organizations'

success. Based on data from Direct Selling Association's 2018 National

Salesforce Survey, this study by Li, Liao, and Li, (2020) explores the conceptual

structure of workforce engagement among direct selling independent sales

representatives and its impact on work experience and job performance. The

study found that millennials perceived direct selling as a serious career path and

felt engaged would have better work experiences. Regarding job performance,

highly engaged independent sales representatives held more sales parties but

did not achieve higher sales revenue or net profit per party. The study concluded

that although millennials were intensely interested in pursuing direct selling as a

career, their engagement only sometimes resulted in higher job performance.

Sales force management allows the organization to manage multiple

distribution channels, providing the tools to collaborate with agents and brokers.

It also helps handle commissions and in-force business so that the organization

can increase the target market, attract new customers, improve sales

performance and increase productivity. Andaya's (2014) study assessed the

effectiveness of sales force management of Honda Cars Batangas and provided

ways to enhance their productivity. The study revealed that most of the sales

consultants at Honda Cars Batangas are relatively young, female, new in the

field of sales, in the middle-income group, and most of them are bachelor's

degree holders. Based on the results, the existing practices on sales force

management of Honda Cars Batangas were effective. In contrast, lost sales due

to the unavailability of the unit's variant, color, etc., and competitors' promos were

the most common problem faced by sales consultants when internal and external

factors were considered. The two groups of respondents' existing practices on

sales force management were similar.

The study aims to determine the relationship between salesforce

management and the organizational performance of direct selling companies in

Santiago City.

Research Question

The study seeks to answer the following question.

1. What is the level of effectiveness of the salesforce management as perceived

by the participants?

2. What is the organizational performance of the direct selling companies in

terms of the following:

a. Profitability

b. Growth

3. What is the relationship between the effectiveness of the sales force

management and organizational performance of direct selling companies?

Significance of the Study

The study aims to determine the relationship between salesforce

management and the organizational performance of direct selling companies in

Santiago City. The results of the study will be significantly beneficial to the

following stakeholders:

Direct Selling Companies. The result of this study will help direct selling

companies to improve the management of their salesforce in order for them to be

more effective in enhancing both organization profitability and growth.

Salesforce. This research will significantly benefit the sales force as they

provide product information to customers. Through this research, the sales force

may receive adequate training and motivation from the management.

Future Researchers. This research will benefit future researchers as this

can provide additional information for their future research, and it would be

contextualized in line with past research studies.

Conceptual Framework

Profit is the primary goal of business, but it is not the only one. Companies

should avoid making decisions based simply on profit without contemplating the

repercussions. Growth is determined by a firm's ability to control expenses, the

manufacturing process, and sales. Profitability ratios may be used to assess

sales force management's capacity to create earnings from sales, weather

financial downturns, and compete. (Ismail, 2016) Modern sales organizations,

like their clients' businesses, are highly complex and dynamic operations. The

sheer size of many sales organizations and vastly disparate demands regarding

critical success aspects in relationship selling pose difficulties. Because of the

challenges in recruiting highly qualified people for sales positions and the often-

lengthy training programs required to recruit salespeople up to speed on

knowledge and skills, it is often difficult to rapidly expand a sales force to take

advantage of new products or growing markets. However, in some situations, a

company may be able to motivate and compensate for the lack of qualified staff

by engaging fee-for-service or commission-based outside organizations or

specialists. (Johnston & Marshall, 2016). Sales managers must constantly

examine the salesforce's progress to determine current efficacy and

performance. This is challenging since these evaluations must include both sales

units' effectiveness and individual salespeople's implementation. The sales

organization audit is the most thorough method for assessing the overall

effectiveness of the sales organization. This involves evaluating the performance

of various sales organization units in terms of sales, expenses, profitability, and

productivity. A sales manager's ability to use this strategy allows them to analyze

particular problems and propose solutions (Ingram, LaForge, Avila, Schwepker,

& Williams, 2015).

This theoretical framework illustrates both dependent and independent

constructs. The effective management of the sales force is an independent

construct. It comprises four variables: recruitment, training, motivation, and

evaluation plan. This framework is based on past studies on effective sales force

management as an essential factor influencing organizational performance. As a

result, organization performance is chosen as the dependent variable, including

organization profitability and growth.

Literature Review

Sales Force Management

It is the salesperson who is in direct contact with the customers. The

image and reputation of the company rest on the behavior of salespeople. One

wrong behavior on the part of salespeople can cost much to the company

(Fatima & Azarn, 2017).

The salesforce is the engine that drives organizations' revenue and

represents a significant investment for most organizations. In the current era of

intense competition, salesforce management is becoming increasingly complex

and challenging for sales organizations. Given that many businesses spend more
on their salesforce than on any other marketing activity, improving the

performance of the salesforce is of paramount importance (Madhani, 2015).

As businesses now provide a wide range of options for customers'

preferences regarding products and services, the business environment is

becoming more competitive and dynamic. There are speculations that due to the

intense market competition, goods and services can become business

commodities. In essence, the sales force is a substantial investment in sales.

Businesses worldwide invest tremendous sums of money each year in the

compensation of their sales force and in sales training, which occupies or

accounts for a significant portion of overall costs for organizations (Kumar,

Sunder & Leone, 2015).

Effective sales force management is crucial to the success of business

organizations in this situation. Thus, the organization's sales team is crucial in

identifying client demands, gaining customers' trust, and fostering business

relationships. Effective sales force management requires managers to

comprehend that salespeople are driven by various physiological, psychological,

and sociological reasons and that these elements influence their performance

concerning company goals.

Effective sales force management begins with a competent sales manager

selecting the ideal candidate for the sales job, although it may seem complex.

However, rewarding the most productive salesperson with a promotion, incentive,

or bonus remains the most widespread strategy many organizations use to

manage their sales force effectively. Managers must understand that success
comes not only from financial bases, competitive positions in the marketing

environment, and advanced technology but also from committed employees with

the necessary professional skills to support the company's performance

(Marenglena, 2018).

The American Marketers Association (AMA) takes a variety of

perspectives into account. It described sales management as the planning,

directing, and control of the personnel-related selling activities of a business unit,

including hiring, selecting, training, assigning, rating, overseeing, paying, and

inspiring, as all responsibilities apply to the personnel salesforce.

Skiba, Saini, and Friend (2016), "sales management" refers to the

management of salesforce people with specific objectives to meet organizational

goals; as a result, company objectives might either be explicit and definitive,

implicit or general.

Creating strategies and objectives is a step in the sales management

process. The sales manager or managers must carefully consider the market-

share goals, target markets, and growth objectives that may aid in enhancing

sales performance (Andaya, 2019).

Salesperson training improves their product expertise. Sales depend on

knowing one's items as well as those of competitors. A new salesperson must

know the good or service he plans to market. Organizations can educate their

workers about the goods or services they offer through a training program

(Andaya, 2019).
 Aborampah and Patrick (2016) regarded training as one of the primary

factors of the sales force that must be effectively managed because of its

considerable influence on organizational performance. The findings of their study

imply that the strongest predictor of employees’ performance is the design of the

training and development program.

The findings of Rawat (2022) reveals that training and development are

essential in any business, especially for less-trained or unskilled employees.

Generally speaking, the company's various training techniques and resources

considerably increased the job contribution of its personnel. As a result, it

positively affected the employee's overall performance and improved their

abilities and productivity.

Providing workers with sufficient training could represent an investment

with a high likelihood of producing positive growth in terms of income generation

for the organization. It can also be utilized as a corrective measure for the

present and the future. Additionally, since training is at the core of organizational

performance, the company may utilize training and development as a plan to

educate employees on new abilities, including new methods or strategies that

salespeople can use to interact with consumers (Carrie, 2015).

A sales manager serves as a catalyst, giving salespeople the stimulation

and appropriate rewards to feel driven and the rewards they need to feel

motivated going forward. The results of the study by Andaya (2019)

demonstrated that the possibilities provided to the respondents' participation in

workshops, seminars, and sales-related conferences are slightly practical.

 For a sales company to succeed, its salesforce must be effectively

managed and motivated. One of the tools that sales organizations can employ to

manage and inspire their salesforce is sales compensation (Madhani, 2015).

Motivation, compensation, and satisfaction are the three major variables to take

into account while managing and keeping an effective salesforce (Reddy, M.

Reddy & VenuGopal, 2019). Another research indicated that there was a

significant correlation between the performance of workers and motivational

tools including remuneration, rewards, recommendations, and recognition

(Hussein & Simba, 2017).

Wambua and Nzulwa (2016) stated that the fundamental idea of

motivation is that it is the force that propels a person to work toward a goal in

order to satisfy a need or expectation; it further distinguishes between extrinsic

motivation, which is linked to material rewards like money, and intrinsic

motivation, which is linked to psychological rewards like a sense of

accomplishment and challenge.

Kalogiannidis (2021) states that motivation is an essential aspect of

organizational growth, and every employer must use the most effective

motivational method to achieve long-term development. Nguyen (2017) suggests

that employee empowerment can achieve employee motivation. It denotes the

extent to which employees participate in decision-making processes, the

existence of a reciprocal link between the employees and the organization, and

authority over the task they are working on; the findings of his research revealed

that employee motivation is one of the essential factors in an organization's

effectiveness and directly contributes to its growth and prosperity. Agboola

(2019) shows that his study's findings demonstrate the sales force's motivation

having no statistically significant impact on the growth of the company. This

suggests that organizational performance cannot be predicted by sales force

motivation.

Marenglena (2018) conducted an empirical study to examine the influence

of both internal and external motivational factors on behavior-level performance.

The findings indicate that leading salesforce communication and working alone

are the internal factors that best explain salespeople's motivation. In contrast,

salaries, rewards, and workplace safety are the external factors that best explain

salespeople's motivation.

Organizations that seek and choose candidates successfully are more

likely to hire and keep satisfied employees. Furthermore, the effectiveness of an

organization's selection method can impact bottom-line business outcomes such

as productivity and profitability (Ekwoaba, 2015).

Recruitment and selection in any organization is a serious business as the

success of any organization or efficiency in service delivery depends on the

quality of its workforce recruited into the organization through recruitment and

selection exercises. Managers must understand the selection objectives, policies,

and practices (Ekwoaba et al., 2015). Aloysius and Mary (2016) suggests that

the fundamental goal of recruitment is to build a star employee group and ensure

that the company chooses the best candidates for the positions that are open

within the organization by encouraging more potential employees to apply for job
positions there; it also emphasizes the relationship between recruitment and the

operations of the organization

The goal of performance evaluation is to assess each person's job

systematically. Performance is evaluated concerning factors like job knowledge,

output quantity and quality, initiative, and profit contribution, or, to put it another

way, a comparison of the goals and objectives of the sales force with what is

accomplished in the field. The process of evaluating a salesperson's

performance comprises assigning a relative score to reflect the salesperson's

success on the chosen dimension for measuring the employee's performance in

terms of sales and their behavior while doing their duties. The effectiveness of a

particular strategy in reaching the sales objective is evaluated strategically using

the performance of sales representatives, and if necessary, corrective action is

taken (Kesari, 2014).

Organizational Performance

According to the study by Awan and Rasheed (2021), organizational

performance is greatly improved if the affected employees receive formal training

through systematic training processes. For businesses to continue operating and

for organizations to be more productive, the human resource department must

thoroughly assess training needs before sending staff members out for training,

particularly in the current period of increased global competition and increasingly

complex work conditions.

 Organizations can strive for excellence by optimizing organizational

efficiency, enhancing customer service, boosting productivity, adapting to market

dynamics, and driving financial performance. These actions can be achieved

through effective resource utilization, performance optimization, competitive

advantage acquisition, customer attraction and retention, proactive market

response, and sustainable financial returns generation (Gaoat, et al., 2023).

For organizational performance, Benet-ZepF, Marin-Garcia, and Kuster

(2017) recommended that salespeople are better positioned to deliver more

secure information to ensure good quality and meet customers' needs since they

are more aware of their behavioral performance than managers.

Kim and Jang (2020). According to the findings, restaurant businesses

can improve performance in terms of both short-term revenue growth and long-

term profitability benefits by using employee remuneration as a management

tool. The findings also suggested that restaurant businesses may gradually raise

employee pay to sustain more excellent performance.

The measurement of performance

based on behaviors
is concerned with the various skills
and activities (such as
adaptive selling, teamwork, sales
presentations, sales
planning and sales support
activities aimed to attract,
keep or retain customers) that are
important to salespeo
ple for fulfilling the responsibilities
of the sales job.
Outcome measures of performance
include the number of
products sold, the sales volume,
and profitability.
The measurement of performance
based on behaviors
is concerned with the various skills
and activities (such as
adaptive selling, teamwork, sales
presentations, sales
planning and sales support
activities aimed to attract,
keep or retain customers) that are
important to salespeo
ple for fulfilling the responsibilities
of the sales job.
Outcome measures of performance
include the number of
products sold, the sales volume,
and profitability.
The measurement of performance
based on behaviors
is concerned with the various skills
and activities (such as
adaptive selling, teamwork, sales
presentations, sales
planning and sales support
activities aimed to attract,
keep or retain customers) that are
important to salespeo
ple for fulfilling the responsibilities
of the sales job.
Outcome measures of performance
include the number of
products sold, the sales volume,
and profitability.

METHODS

This section presents the methodology used in the study. It comprises

research design, site and participants, instrument, data gathering, analysis, and

ethical considerations.
Research Design

This study utilized a correlational cross-sectional descriptive design since

data will be collected through survey questionnaires from participants in a single

population. It is relatively quick and easy to do while also being able to map the

result of the population where the study is conducted (Sedgwick, 2014). A

descriptive survey method is appropriate because it can quantify the data

gathered and has the strength to determine the relationship between the

independent and dependent variables, making it an ideal method for addressing

the research questions.

Study Site and Participants

The study is conducted in Santiago City. Santiago is an independent City

in the province of Isabela, and it is the house of various commercial business

establishments. Santiago City is located in Northern Luzon, Philippines.

The participants of the study are sales agents of the four direct selling

companies who have undergone salesforce management. There are 6 identified

direct selling companies in Santiago City but only four of them agreed to

participate in the study. The study utilized quota sampling wherein the

researchers are tasked to reach a quota of 20 sales agent a day for five days. A

total of 95 sales agents willingly participated in answering the survey

questionnaire.

Instruments
 The survey questionnaire was adopted from the study of Agboola (2019),

which deals with Salesforce management among pharmaceutical companies.

The research questionnaire was structured into three parts. The first part is about

the effectiveness of the salesforce management, which comprises four

subscales: recruitment and selection, training, motivation, and evaluation process

consisting of five items each. The items are measured using a five-point Likert

scale of 5 (Extremely Effective), 4 (Very Effective), 3 (Effective), 2 (Somewhat

Effective), and 1 (Not Effective). The second part deals with organizational

performance, comprising two subscales: profitability and growth consisting of 5

items each. The items are measured using a five-point Likert scale of 5 (Strongly

Agree), 4 (Agree), 3 (Undecided), 2 (Disagree), and 1(Strongly Disagree). As

used in previous studies, reliability of the instrument were measured using

Cronbach alpha coefficient and it was accepted at greater than 0.7 benchmark.

Therefore, the coefficients of a scale of Cronbach alpha .7 and above are

considered accepted (Sekaran & Bougie, 2014).

Data Gathering Procedure

The researchers asked permission from the managers of direct selling

companies. After approval, the researchers administer the informed consent and

survey questionnaires to the sales agents who have undertaken salesforce

management. The researchers distributed the questionnaire to the respondents

to be surveyed upon their knowledge of its purpose and ethical considerations.

The researchers collected the questionnaires after the respondent has answered

them and evaluated on the completeness of their answers in all the items. As
soon as all the questionnaires are retrieved, the researchers summarized the

result by tallying and tabulating the responses given by the participants through

MS Excel.

Data Analysis

The data is interpreted using statistical tools: mean, standard deviation,

and Pearson correlation coefficient. The researchers used the results weighted

mean and standard deviation to determine the effectiveness of sales force

management and the extent of profitability and growth of direct selling

companies. In contrast, the Pearson correlation coefficient (r) will be used to

determine the relationship between the effectiveness of the sales force

management and the organizational performance of direct selling companies.

Ethical Considerations

The researchers' ethics in the study are integrity, objectivity, carefulness,

confidentiality, respect for intellectual property, and ethics of informed consent.

The researchers have utilized integrity as they know that being honest in

reporting methods, data, and results and not fabricating information will help

them make research credible and reliable for the public.

The second ethics was objectivity. The researchers have been objective

throughout in conducting the study. As quantitative researchers are objective,

they will not let it fall by their subjective opinions; instead, they have striven to

avoid biases and self-deception.

 Third is the ethics of carefulness. In presenting the study results, the

researchers have ensured that the data presented have gone through critical and

careful examinations to avoid careless errors and negligence.

Fourth is the ethics of confidentiality. In conducting the research, the

researchers have utilized the ethics of confidentiality as protecting the

respondents' personal information is vital in conducting the study. With the

respondents, the study will accumulate the data needed to finish it.

Fifth the ethics of respect for intellectual property. The researchers know

that taking other people's property and making it their own is a form of stealing.

That is why they give proper acknowledgment or credit for all the contributions of

other published books they have used in the study. In this way, they already gave

acknowledgments to the contributing authors, and at the same time, they have

avoided plagiarism.

Lastly, the ethics of informed consent. The researchers get permission

before conducting an interview and ensuring the participants' approval.

RESULTS
 This section presents the data gathered from the survey questionnaire and

statistical analysis relative to the research question. The research findings aimed

to examine the relationship between effectiveness of salesforce management

and organizational performance among selected direct selling companies in

Santiago City.

Research Question 1: What is the level of effectiveness of the salesforce

management as perceived by the participants?

The data on the mean, standard deviation, and interpretation of the level

of effectiveness of salesforce management as perceived by the participants are

shown in Table 1 below:

Table 1

Mean, Standard Deviation, and Interpretation of the Level of Effectiveness of

Salesforce Management as perceived by the participants

Salesforce Management M SD INTERPRETATION

Recruitment and Selection 4.28 0.05 Extremely Effective
Training 4.47 0.10 Extremely Effective
Motivation 4.61 0.04 Extremely Effective
Evaluation Process 4.48 0.07Extremely Effective
Composite Mean 4.46 0.14 Extremely
Effective
Note: M = Mean; SD = Standard Deviation; Interpretation: 1-1.79=Not Effective,
1.80-2.59=Somewhat Effective, 2.60-3.39-Effective, 3.40-4.19=Very Effective,
4.20-5.00=Extremely Effective.

Table 1 shows that most of the participants rated Motivation as Extremely

Effective (M = 4.61, SD = 0.04) having received the highest mean score. This

implies that motivation such as promotion and financial rewards are the most
effective salesforce management practice. Followed by Evaluation Process with

a mean score (M = 4.48, SD = 0.07). Meanwhile, Training has a mean score (M =

4.47, SD = 0.10). On the other hand, recruitment and selection has the lowest

mean score (M = 4.28, SD = 0.05). With the composite mean score (M = 4.46,

SD = 0.14) this signifies that the salesforce management practices of direct

selling companies are extremely effective.

Research Question 2: What is the organizational performance of the direct

selling companies in terms of the following:

a. Profitability

The data on the mean and standard deviation of the organizational

performance of direct selling companies in terms of profitability is shown in Table

2 Below:

Table 2

Mean and Standard Deviation of the Organizational Performance of Direct

Selling Companies in terms of Profitability

Organization Profitability M SD INTERPRETATION

Meeting the needs of the customers by
the salesforce leads to financial gain for 4.40 0.55 Strongly Agree
the organization
Recruiting the right caliber of salesforce
contributes to an organization's revenue 4.34 0.48 Strongly Agree
increment
The evaluation appraisal process
enhances outstanding organizational 4.43 0.50 Strongly Agree
performance
Continual training of the salesforce to 4.39 0.69 Strongly Agree
meet up with current challenges
contributes to the organization's net
 income
Organizations earn more return on
investment as a result of motivating 4.52 0.60 Strongly Agree
salesforce
Composite Mean 4.41 0.07 Strongly Agree
Note: M = Mean; SD = Standard Deviation; Interpretation: 1-1.79=Strongly
Disagree, 1.80-2.59=Disagree, 2.60-3.39-Undecided, 3.40-4.19=Agree, 4.20-
5.00=Strongly Agree.

Table 2 shows that the participants strongly agree that organizations earn

more return on investment as a result of motivating salesforce (M = 4.52, SD =

0.60) as it receives the highest mean score. While “evaluation appraisal process

enhances outstanding organizational performance” comes second (M = 4.43, SD

= 0.50). Followed by “meeting the needs of the customers by the salesforce

leads to financial gain for the organization” (M = 4.40, SD = 0.55). “Continual

training of the salesforce to meet up with current challenges contributes to the

organization's net income” (M = 4.39, SD = 0.69). “Recruiting the right caliber of

salesforce contributes to an organization's revenue increment” (M = 4.43, SD =

0.50). Therefore, the compostie mean of 4.41 indicates that majority of the

respondents strongly agreed with the organizational performance of direct selling

companies in terms of profitability.

b. Growth

The data on the mean and standard deviation of the organizational

performance of direct selling companies in terms of growth is shown in Table 3

Below:
Table 3

Mean and Standard Deviation of the Organizational Performance of Direct

Selling Companies in terms of Growth

Organization Growth M SD INTERPRETATION

When salesforce is well remunerated, it
4.44 0.50 Strongly Agree
will lead to organizational development.
Organizations can improve if salesforce
4.37 0.57 Strongly Agree
performs the task given to them diligently.
Excellent performance of salesforce can
4.35 0.48 Strongly Agree
increase an organization's market share.
Continual training of the salesforce to
meet up with current challenges 4.34 0.59 Strongly Agree
contributes to company expansion.
Salesforce is committed to making the
company thrive when they are well 4.49 0.52 Strongly Agree
motivated.
Composite Mean 4.40 0.07 Strongly Agree
Note: M = Mean; SD = Standard Deviation; Interpretation: 1-1.79=Strongly
Disagree, 1.80-2.59=Disagree, 2.60-3.39-Undecided, 3.40-4.19=Agree, 4.20-
5.00=Strongly Agree.

Table 3 presents the mean and standard deviation of the participant’s

response to the organizational growth. “The salesforce is committed to making

the company thrive when they are well motivated” gained the highest mean score

(M = 4.49, SD = 0.52). The table also shows that when salesforce is well

remunerated, it will lead to organizational development by having mean score (M

= 4.44, SD =0.50). Followed by “organizations can improve if salesforce performs

the task given to them diligently” (M = 4.37, SD = 0.57). “Excellent performance

of salesforce can increase an organization’s market share” (M = 4.35, SD =

0.48). Meanwhile, the data show that continual training of the salesforce to meet
up with current challenges contributes to company expansion (M = 4.43, SD =

0.59) having received the lowest mean score. Therefore, majority of the

participants strongly agreed with the organizational performance of direct selling

companies in terms of growth.

Research Question 3: What is the relationship between the effectiveness of

the sales force management and organizational performance of direct

selling companies?

Table 4 illustrate the relationship between the effectiveness of salesforce

management and organizational performance of selected direct selling

companies

Table 4

Pearson Correlation Coefficient on the relationship between the effectiveness of

salesforce management and organizational performance of selected direct

selling companies

Organizational
Variable
Performance
Effectiveness of the sales force r 0.744
management p-value 0.001

Table 4 shows the result of Pearson product-moment correlation to evaluate the

relationship between the effectiveness of the sales force and the organizational

performance of direct selling companies. The test revealed that the effectiveness

of the sales force has a strong, positive correlation with the organizational

performance of direct selling companies, r (95)= 0.744, p= <0.001). In summary,

results have shown that direct selling companies in Santiago City have extremely

effective salesforce management practices which contributes to their strong

organizational performance in terms of profitability and growth. Additionally,

results indicated a strong positive correlation between the effectiveness of

salesforce and organizational performance upon which an effective sales force

management drives success for direct selling companies. Meanwhile, the result

showed that direct selling companies can achieve levels of organizational

performance into heights by effectively motivating and managing their salesforce

through promotions, financial rewards, continuous training, proper understanding

of selection objectives, practices and policies, and a successful performance

evaluation program.
 DISCUSSIONS

This study examined the relationship between the effectiveness of

salesforce management on organizational performance of direct selling

companies in Santiago City.

The first research question indicated that salesforce management

practices of direct selling companies are extremely effective. This suggests that

promotions and financial rewards, continuous training, a proper understanding of

selection objectives, policies, and practices, and a successful performance

evaluation program contribute to the effectiveness of salesforce management. It

also indicates a high level of effectiveness across the board in salesforce

management practices within the direct selling industry. The result findings are

correlated with the study of Wambua and Nzulwa (2016) that the fundamental

idea of motivation is that it is the force that propels a person to work toward a

goal in order to satisfy a need or expectation. For a sales company to succeed,

its salesforce must be effectively managed and motivated. One of the tools that

sales organizations can employ to manage and inspire their salesforce is sales

compensation (Madhani, 2015). This study is also similar to the findings of

Reddy, Reddy, and VenuGopal (2019) wherein motivation, compensation, and

satisfaction are the three major factors to take into account while managing and

keeping an effective salesforce.

The second research question indicated that the participants strongly

agreed with the organizational performance of the direct selling companies in

terms of profitability and growth. From the study’s findings, the result implied that

direct selling companies are performing well in terms of profitability and growth,

due in part to continuous training and motivation for the salesforce, as well as

incentives and rewards for sales agents. These factors contribute to

organizational success by fostering a high-performing workforce capable of

achieving organizational goals. This resonates with the study of Kalogiannidis

(2021) which states that motivation is an essential aspect of organizational

growth, and every employer must use the most effective motivational method to

achieve long-term development. The findings is also similar to the study of

Nguyen (2017) wherein his research revealed that employee motivation is one of

the essential factors in an organization's effectiveness and directly contributes to

its growth and prosperity. The findings of Agboola (2019) negates the preposition

of this study’s findings that motivation has a positive effect on the organization

growth, since his study reveals that motivation of sales-force have no statistical

significant effect on organization growth. Furthermore, the research findings

support the study conducted by Ubabuike (2020) that there was a positive impact

of sales force motivation on organizational profitability. Kalogiannidis (2021) also

concluded in his study that employee motivation is one of the most important

instruments in human resource management since it allows managers to ensure

an organization's growth and development. Both studies correlates as it

emphasize motivation as an effective tool in achieving organizational

performance.
 The third research question indicates that the effectiveness of the

salesforce management has a strong positive correlation with the organizational

performance of direct selling companies. This means that effective sales force

management contribute in achieving organizational performance of direct selling

companies both in profitability and growth. This finding is consistent with the

previous studies. The result findings is related to that study of Agboola (2019)

which showcases that the sales force management significantly impacts the

organizational performance, as to its effectivity, could be used to achieve

organizational performance of direct selling companies. Another study that aligns

the result findings is that of Sharma, Rangarajan, and Paesbrugghe (2020) which

found out that the central conclusion of their research is that sales team improves

organizational performance. Since the study found a strong positive correlation,

other company may also apply it for their organizational performance, and direct

selling companies may continue to use salesforce management as a strategic

tool in achieving organizational profitability and growth.

Conclusion

The study sought to determine the relationship between salesforce

management practices and the organizational performance of direct selling

companies in Santiago City. The study found that direct selling companies in

Santiago City have extremely effective salesforce management practices that

contribute to their strong organizational performance in terms of profitability and

growth. The study also found a strong positive correlation between the

effectiveness of the salesforce and the organizational performance, indicating

that effective sales force management is a key driver of success for direct selling

companies. These findings suggest that direct selling companies can achieve

high levels of organizational performance by effectively managing and motivating

their salesforce through promotions, financial rewards, continuous training,

proper understanding of selection objectives, policies, and practices, and a

successful performance evaluation program. The study makes significant

contributions to the understanding of direct selling companies by elucidating the

intricate relationship between salesforce management practices and

organizational performance in the context of Santiago City. Direct selling

companies can leverage these insights to refine their salesforce management

strategies and propel their organizational performance to new heights. Moreover,

researchers can utilize the study's findings to develop novel theories and models

that further illuminate the dynamics of salesforce management and

organizational performance. Overall, the study offers a comprehensive and

insightful analysis of the interplay between these critical factors, providing

valuable guidance for both practitioners and researchers in the field of direct

selling.

Recommendation

Based from the findings of this study, the following recommendations are

made for improvement and better results. The management of direct selling

companies should incorporate training to all salesforce that contributes to the

organizational performance in order for them to be equipped with sufficient

knowledge, skills and information that could help to perform task given to them
and to increase their competency. Since motivation is the leading salesforce

management practice that is found to be extremely effective, it is recommended

for the management to give recognition or reward to sales agents and employees

who immensely exert effort to boost sales and increase profitability of the

company in order for them to remain motivated and committed to work.

Limitations and Recommendation for further research of the study

The study faced with some challenges in determining the respondents of

the study as not all direct selling companies have the same job description when

it comes to their salesforce. Some companies implement the salesforce

management practices within their sales agents while for other companies, only

those within the upper management will observe/undertake the salesforce

management. The researchers were also unable to get the number/list of sales

agents as companies do not disclose such information. Another challenge faced

was the issue of confidentiality, some of the managers decline the letter and did

not entertain the researchers much further as they thought participating in this

study would expose them to the management of the company. This reduced the

chance to increase the sample size of the study. Some of the participants also

turned down the offer to participate in the data gathering. There is also little or

limited studies carried out pertaining to salesforce management and

organizational performance for the past years hence, the information are

insufficient to support the present research findings.

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 Appendix A
INFORMED CONSENT

Dear Participants:

We are BACC 010 – Business Research students at the College of

Business Education – University of La Salette, Inc. As a course requirement, we
will conduct research entitled EFFECT OF SALES FORCE MANAGEMENT ON
ORGANIZATIONAL PERFORMANCE OF DIRECT SELLING COMPANIES IN
SANTIAGO CITY. This research aims to determine the relationship between
sales force management and the extent of profitability and growth of direct selling
companies. With this, we would like to solicit your participation in this endeavor.

Suppose you have questions at any time about this study or you experience
adverse effects as a result of participating in this study. In that case, you may
contact the group leader of the proponents, whose contact information is
provided below. If you have questions regarding your rights as a research
participant, or if problems arise that you do not feel you can discuss with the
proponents, please contact our group leader at 09053892556.

Your participation in this study is voluntary. It is up to you to decide whether to

participate in this study. If you decide to participate in this study, you will be
asked to sign a consent form. After you sign the consent form, you can withdraw
anytime without giving a reason. Withdrawing from this study will not affect your
relationship with the researchers, if any. If you withdraw from the study before
data collection is completed, your data will be returned to you or destroyed.

Your participation in this research is entirely anonymous. No information you

share can be traced, nor can you be traced by any information you provide. Data
will be kept and stored with the utmost confidentiality. Only researchers will have
access to the data.
CONSENT

I have read and understand the provided information and have had the
opportunity to ask questions. I understand that my participation is voluntary and
that I am free to withdraw at any time, without giving a reason and without cost. I
understand that I will be given a copy of this consent form I voluntarily agree to
participate in this study.

Participant's signature ___________________________ Date _____________

Group Leader's signature_________________________ Date_____________

Appendix B
DESCRIPTIVE STATISTICS

Recruitment and Selection M SD INTERPRETATION

Searching for suitable candidates to fill a
vacant post allows the employer to
4.28 0.56 Extremely Effective
select the best candidates for the sales
job.
Selecting the most qualified persons
from among the applicants makes 4.33 0.55 Extremely Effective
recruiting suitable applicants easier.
Recruiting an adequate number of
applicants assists in meeting up with 4.28 0.63 Extremely Effective
market share.
Analysis of the personal histories of an
applicant to determine the truth leads to
4.20 0.68 Extremely Effective
the appropriate choice of qualified
salesforce.
Matching applicants with hiring
specifications affords the organization to 4.29 0.68 Extremely Effective
make proper recruitment.
Category Mean 4.28 0.05

Training M SD INTERPRETATION
Continual training improves the selling
4.52 0.60 Extremely Effective
skills of a salesforce
Training contributes to the organizational
performance of both output and 4.45 0.60 Extremely Effective
profitability.
Salesforce training affords the salesforce
to learn more strategies for dealing with 4.47 0.50 Extremely Effective
customers.
Sales training improves salesforce time
4.32 0.64 Extremely Effective
and territory management Practices.
Sales training affords the salesforce to
4.57 0.54 Extremely Effective
learn about new products.
Category Mean 4.47 0.09

Motivation M SD INTERPRETATION
Promotion drives sales person to be more 4.5
0.61 Extremely Effective
productive 9
Financial rewards make the salesforce 4.6
0.55 Extremely Effective
happy. 2

There is a high sense of commitment to 4.5

0.54 Extremely Effective
work where incentives are involved. 6

Salesforce tends to be more creative 4.6

0.54 Extremely Effective
where they know they will be rewarded. 5

Hardworking salespeople are usually 4.6

0.49 Extremely Effective
driven by motivation. 1
4.6
Category Mean 0.04
1

Evaluation Process M SD INTERPRETATION

Setting specific performance goals
develops new training needs for upgrading 4.52 0.58 Extremely Effective
the salesforce's effort.
Performance evaluation helps the
salesforce to identify opportunities for 4.52 0.63 Extremely Effective
improvement efforts.
A successful evaluation program
appraises salespersons related to 4.55 0.50 Extremely Effective
performance.
Objective evaluation efforts increase the
organization's sales volume, profit, and 4.39 0.59 Extremely Effective
growth.
Performance evaluation is the best basis
for compensation decisions and other 4.41 0.52 Extremely Effective
rewards.
Category Mean 4.48 0.07
 Appendix C
SURVEY QUESTIONNAIRE

Part I. Effectiveness of Salesforce Management

Instructions: Please indicate the extent of your agreement with the statement
below by checking ( / ) one of the spaces provided. Where Extremely Effective
(EE=5), Very Effective (VE=4), Effective (E=3), Somewhat Effective (SE=2), and
Not Effective (NE=1).
Recruitment and Selection EE VE E SE NE
5 4 3 2 1
1 Searching for suitable candidates to fill
a vacant post allows the employer to
select the best candidates for the sales
job.
2 Selecting the most qualified persons
from among the applicants makes
recruiting suitable applicants easier.
3 Recruiting an adequate number of
applicants assists in meeting up with
market share.
4 Analysis of the personal histories of an
applicant to determine the truth leads
to the appropriate choice of qualified
salesforce.
5 Matching applicants with hiring
 specifications affords the organization
to make proper recruitment.

Training EE VE E SE NE
5 4 3 2 1
1 Continual training improves the selling
skills of a salesforce
2 Training contributes to the
organizational performance of both
output and profitability.
3 Salesforce training affords the
salesforce to learn more strategies for
dealing with customers.
4 Sales training improves salesforce time
and territory management Practices.
5 Sales training affords the salesforce to
learn about new products.

Motivation EE VE E SE NE
5 4 3 2 1
1 Promotion drives sales person to be
more productive
2 Financial rewards make the salesforce
happy.
3 There is a high sense of commitment
to work where incentives are involved.
4 Salesforce tends to be more creative
where they know they will be
rewarded.
5 Hardworking salespeople are usually
driven by motivation.

Evaluation Process EE VE E SE NE
5 4 3 2 1
1 Setting specific performance goals
develops new training needs for
 upgrading the salesforce's effort.
2 Performance evaluation helps the
salesforce to identify opportunities for
improvement efforts.
3 A successful evaluation program
appraises salespersons related to
performance.
4 Objective evaluation efforts increase
the organization's sales volume, profit,
and growth.
5 Performance evaluation is the best
basis for compensation decisions and
other rewards.

Part II. Organization Performance

Instruction: Please indicate the extent of your agreement with the statement
below by checking ( / ) one of the spaces provided. Where Strongly Agree
(SA=5), Agree (A=4), Undecided (U=3), Disagree (D=2), Strongly Disagree
(SD=1).

Organization Profitability SA A U D SD
5 4 3 2 1
1 Meeting the needs of the customers by
the sales-force leads to financial gain
of the organization
2 Recruiting the right caliber of sales-
force contributes to organization
revenue increment
3 Evaluation appraisal process enhance
organizational outstanding
performance
4 Continual training of sales-force to
meet up with current challenge
contributes to organization net income
5 Organization earn more return on
investment as result of motivating
sales-force
 Organization Growth SA A U D SD
5 4 3 2 1
1 When salesforce is well remunerated,
it will lead to organizational
development.
2 Organizations can improve if
salesforce performs the task given to
them diligently.
3 Excellent performance of salesforce
can increase an organization's market
share.
4 Continual training of the salesforce to
meet up with current challenges
contributes to company expansion.
5 Salesforce is committed to making the
company thrive when they are well
motivated.