CHAPTER 10: Evaluating

Sales Force Performance

CONTENTS
• Purposes of Performance Evaluation
1

• Sales Person Performance Evaluation Approaches

2

• Criteria for Performance Evaluation

3

• Performance Evaluation Methods

PURPOSES OF SALESPERSON
PERFORMANCE EVALUATIONS
 Compensation and other reward disbursements
 Promotion
 Termination
 Training and counseling needs
 Effective human resource planning
 Recruitment and Selection
 Advise for salespeople about work expectations
 Motivation
 To Help salespeople set career goals
 To relate salesperson performance to sales organization goals
 To enhance communications between salesperson and sales manager
 To improve salesperson performance
SALESPERSON PERFORMANCE
EVALUATION APPROACHES

360-degree feedback system

Performance Management

Total Quality Management

PERSPECTIVES ON SALESPEOPLE
PERFORMANCE EVALUATION

Madhani, 2015
CRITERIA FOR PERFORMANCE
EVALUATION
PERFORMANCE EVALUATION METHODS
 Job relatedness
 Reliability
 Validity
 Standardization
 Practicality
 Comparability
 Discriminability
 Usefulness
EVALUATING TEAM PERFORMANCE
EVALUATING TEAM PERFORMANCE
Steps for measuring team performance
1. Review the existing organizational measures.
2. Define team measurement points.
3. Identify individual team member accomplishments that support the team.
4. Weight the accomplishments.
5. Develop team and individual performance measures.
6. Develop team and individual performance standards.
7. Decide how to track performance.
USING PERFORMANCE INFORMATION
Evaluate Salespeople against Relevant Performance Criteria

Compare Salesperson Evaluations to Identify Problem Areas

Investigate Problem Areas to Identify Causes of

Performance Problems

Determine Sales Management Actions to Eliminate Causes

of future problems and to Solve Existing Problems
ERRORS IN PERFORMANCE EVALUATIONS

1. Distributional errors
2. Halo effect
3. Egocentric effects
4. Sequential effects
5. Evaluator bias