Transcript Document

Copyright © 2001 by Harcourt, Inc. All rights reserved.
PART V
DIRECTING THE
SALES TEAM
Copyright © 2001 by Harcourt, Inc. All rights reserved.
CHAPTER 12
MOTIVATING SALESPEOPLE
TOWARD HIGH PERFORMANCE
Copyright © 2001 by Harcourt, Inc. All rights reserved.
LEARNING OBJECTIVES
An enthusiastic and motivated sales force is the best possible
foundation for successful achievement of sales objectives. This
chapter should help you understand:
 That the definition of motivation includes the motivational mix
and all of its various elements.
 The powerful motivating influence of a high-performance
sales culture.
 The importance of realizing that salespeople have basic needs
that, when met are strongly motivating.
 The model for a salesperson’s behavior.
 The benefit of knowing salespeople personally.
 That not every member of a sales force can be motivated.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
MOTIVATION
The components of a motivational system:
• Understand what motivation is all about.
• Develop a high-performance sales culture.
• Know salespeople’s basic needs.
• Realize that salespeople want to know what
is in it for them.
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The components of a motivational system:
continued
• Get to know the personal side of
salespersons.
• Always remember that motivational
coaching is needed for high performance.
•Be realistic about motivating salespeople.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
UNDERSTAND WHAT
MOTIVATION IS ALL ABOUT
In any discussion about the motivation of
salespeople, the following four questions need to
be considered:
• What arouses salespeople’s behavior?
• What influences the intensity of the
behavioral arousal?
• What directs the person’s behavior?
• How is this behavior maintained over time?
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Motivation refers to the arousal, intensity,
direction, and persistence of effort directed
toward job tasks over a period of time.
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THE SALES MOTIVATIONAL MIX
Motivational Mix – The arousal, intensity,
direction, and persistence of people’s behavior.
Extrinsic Outcomes – Rewards obtained from
individuals’ environment.
Intrinsic Outcomes – Occur purely from the
performance of the task itself.
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TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX
AND EXAMPLES OF EACH MOTIVATIONAL METHOD
1.
2.
3.
4.
Sales culture
 Ceremonies and rites
 Stories
 Symbols
 Language
Basic compensation
 Salary
 Commissions
 Fringe benefits
Special financial incentives
 Bonuses
 Contests
 Trips
Nonfinancial rewards
 Opportunity for promotion
5.
6.
7.
 Challenging work assignments
 Recognition
Sales Training
 Initial
 Ongoing
 Sales meetings
Leadership
 Style
 Personal contacts
Performance evaluation
 Method
 Performance
 Activity
 Publicity
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DEVELOP A SALES CULTURE
Sales culture refers to a set of key values,
ideas, beliefs, attitudes, customs, and other
capabilities and habits shared or acquired
as a member of the sales group.
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IMPLEMENTATION OF A SALES CULTURE
• Ceremonies and Rites
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Ceremonies and rites are the elaborate,
planned activities that make up a special
event and often are conducted for the
benefit of an audience.
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IMPLEMENTATION OF A SALES CULTURE
• Ceremonies and Rites
• Stories
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Stories are narratives based on true events
that are frequently shared among
salespeople and told to new sales reps to
inform them about the organization.
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IMPLEMENTATION OF A SALES CULTURE
• Ceremonies and Rites
• Stories
• Symbols
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A symbol is one thing that represents
another thing.
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IMPLEMENTATION OF A SALES CULTURE
• Ceremonies and Rites
• Stories
• Symbols
• Language
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Many companies use a specific saying,
slogan, metaphor, or other language form
to convey special meaning to employees.
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TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR
IMPLEMENTATION WITHIN THE SALES FORCE
CULTURE
Shared Values
 Reward for performance
 Customer service at any cost
 Employees are part of family
 Attain sales targets
Shared Beliefs
 Customer orientation
 We like this company
 We are a team
 The company cares about us
 Quality work life
 We are professionals
IMPLEMENTING CULTURE
Shared Ceremonies
 Annual awards for meritorious customer
service
 Monthly meetings to acknowledge people
who attain 100% of sales targets
Shared Stories
 Sales managers who make salespeople successful; help with personal problems
 Heroic efforts to please customers by legendary salespeople
Shared Symbols and Slogans
 "Build bridges" to be in touch with
customers.
 "We don't stand on rank" (equality of
family.)
 Open offices for easy communication
 Special plaques for customer service and
sales leaders
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WHAT’S IN IT FOR ME?
Expectancy theory is based on the
assumption that salespeople have
expectancies about what they should
receive from their employer as a result of
their work efforts.
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WHAT IS THE PROBABILITY OF SUCCESS?
Expectancy is the salesperson’s estimate of the
probability that expending a given amount of
effort on a task will lead to an improved level of
performance on some dimension.
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FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW
MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.
“What Is
the Probability
of Success?”
Motivation
to Work
“Will I Be
Rewarded
for Success?”
Performance
Level
“Are the
Rewards
Worth It?”
Rewards
Intrinsic
Extrinsic
Equity
Determination
Inputs vs. Outputs
Feedback
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“Are the
Rewards
Fair?”
Satisfaction
Intrinsic
Extrinsic
WILL I BE REWARDED FOR SUCCESS?
The salesperson’s estimate of the probability that
achieving an improved level of performance
dimension will lead to increased attainment of a
particular reward or outcome may be defined as
instrumentality.
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ARE THE REWARDS WORTH IT?
Valence for rewards refers to the value the
salesperson places on the reward.
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Managerial Implications of Expectancy
Theory
1. Increase expectancies.
2. Make performance instrumental toward
positive outcomes.
3. Identify positively valent outcomes.
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ARE THE REWARDS FAIR?
If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods.
• First, the salesperson may increase or
decrease the level of input that may, in turn,
influence outcomes.
• Second, the salesperson could distort the
facts by convincing himself or herself that
equity really does exist even though it may
not.
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If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods.
continued
• Third, the salesperson could choose another
salesperson with whom to compare the ratio
of outcomes to inputs.
• Fourth, the salesperson could influence other
salespeople to decrease the amount of effort
they are putting into their job.
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HOW TO FACILITATE EQUITY
An individual will tend to reduce the level of
effort if one of these situations is encountered.
1. Sales performance did not increase.
2. No important rewards were given for
meeting quota.
3. The rewards given for meeting quota were
not worth the extra work.
4. Treatment was not fair because one
person’s rewards were the same as
another’s who worked harder.
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Job Satisfaction and Work Attitudes
Job satisfaction refers to feelings toward the job.
Job dissatisfaction, aggregated across many
individuals, creates a sales force that is more
likely to exhibit:
1. Higher turnover.
2. Higher absenteeism.
3. Lower corporate citizenship.
4. More grievances and lawsuits.
5. Stealing, sabotage, and vandalism.
6. Poorer mental and physical health.
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Quality of Work Life
Categories:
1. Adequate and fair compensation.
2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. A social environment that fosters personal
identity, freedom from prejudice, a sense of
community, and upward mobility.
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Quality of Work Life
continued
6. Constitutionalism, or the rights of personal
privacy, dissent, and due process.
7. A work role that minimizes infringement on
personal leisure and family needs.
8. Socially responsible organizational actions.
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The term productivity as applied by QWL
advocates means much more than each
person’s quantity of work output.
It also includes:
• Levels of turnover
• Absenteeism
• Accidents
• Thefts
• Sabotage
• Creativity
• Innovation
• Quality of work
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Voluntary Turnover
Turnover refers to someone leaving their present
job.
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FIGURE 12.2 CLASSIFICATION OF TURNOVER
T
e
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Controllable
Uncontrollable
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FIGURE 12.3 A SALESPERSON’S BEHAVIORAL
MODEL HELPS ILLUSTRATE MOTIVATIONAL
PROCESS
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.01
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GET TO KNOW THE PERSONAL
SIDE OF SALESPERSONS!
UNDERSTAND THE SALESPERSON’S
MOTIVATIONAL BEHAVIOR
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MATCH PEOPLE’S MOTIVES WITH
INCENTIVES THEY VALUE
Incentives are aspects of the environment that
appeal to the salesperson’s motives and have
enough worth to motivate purposeful behavior to
obtain them.
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Incentives that motivate people to do
their best are high motivators.
Examples of high motivators:
• Rewards for successes
• Recognition for achievement
• Job advancement
• Freedom to manage oneself
• Training and sales meetings
• Leadership
• Performance evaluation
• Incentive compensation plans
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Incentives that motivate little or not at
all or, if incentives are absent, that
demotivate are low motivators.
Examples of low motivators:
• Company policy and procedures
• Fringe benefits
• Retirement programs
• More supervision
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Sales managers would do well to explore
different aspects of incentives. Several
things to consider are:
• Some salespeople like material incentives
versus nonmaterial incentives.
• The attraction to short-range incentives
versus long-range incentives.
• Positive incentives in most instances
motivate more successfully than negative
incentives.
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Motivate the Team
Six keys to managing a successful incentive
program:
• Identify the business goal you hope to target.
• Communicate the business needs to your
salespeople.
• Listen to your salespeople.
• Make sure the goals are reachable.
• Don’t repeat the same programs over and
over.
• Don’t try to do everything at once.
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MOTIVATIONAL COACHING IS
NEEDED FOR HIGHPERFORMANCE RESULTS
SALESPEOPLE HAVE BOUNDARY
POSITIONS
Salespeople are involved in meeting both the
needs of their customers and the needs of their
company.
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Salespeople experience role ambiguity
when they do not possess the information
necessary to adequately perform their jobs.
Salespeople experience role conflict when
conflicting, inconsistent, or incompatible
job demands occur from two or more
people.
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FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE
Sales
Manager
Family
R o le
A m b ig u ity
E
ffort
Customers
R o le
C o n flic t
Company
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P
e
r
f
o
r
m
a
n
c
e
Motivational TECHNIQUES
Teach teamwork
Empower
Communicate
Hear
Notice
Initiate integrity
Query
Unify
Exalt
Set standards
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THE BOTTOM LINE
To achieve company and individual objectives, salespeople need
to be motivated.
The first component involves an understanding of the
motivational concept.
The second component in a motivational program is a highperformance sales culture.
Salespeople have basic needs that influence behavior and lead to
goal attainment.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
THE BOTTOM LINE
A realization that salespeople want to know “what’s in it for
them” is the fourth component.
Knowing the theory of motivation is not enough.
Proper motivational coaching is the sixth component of the
motivational program.
Being realistic about motivating salespeople is the final part of
the program.
Copyright © 2001 by Harcourt, Inc. All rights reserved.