5.

Sales Force HR & Administration

August 19, 2013

Sales Force HR & Administration

Manning, recruitment & selection Induction, training & motivation Compensation Meetings, reviews & leadership Evaluation, audit & control

Manning, recruitment & selection

Sales organisaton
control (4-5)

structure, spread, levels (3-4), span of

Job analysis objective, reporting-to, reported-by, product knowledge

requirements, knowledge of customers to be dealt-with, information assimilation & reporting requirements with frequencies.

Job description - A document covering

reporting relationships with superiors, juniors as well as peers Job objective duties & responsibilities Job performance required and evaluation criteria

Position profile covering education, experience, preferred current

employers, age, location of job, KRAs

Manning, recruitment & selection . contd. 1

Recruitment sources
within

the company

existing sales employee references -their relatives, professional contacts recommendations of sales executives / managers based on their past contacts internal transfers from other departments

outside

the company

direct unsolicited applications employment agencies employees of customers / vendors campus recruitment job portals, newspaper advertisements others .

Manning , recruitment & selection . contd. 2

Selection

CV scanning to eliminate irrelevant Telephonic interview Skype interview Formal application form Personal interview to establish the candidate fit with the job based
on his professional , educational and personal background . May involve written test, psychological test, group discussions

Rating scales Health , reference & testimonial check

Manning, recruitment & selection .. Contd. 3

Manning

Relative ability - product & market knowledge, past performance of target

achievement, verbal & written communication and selling skills

Effectiveness social, cultural and physical characteristics so as to make the

sales person and the customers comfortable with each other

Existing relationships -

which are helping in achieving a stable sales in line with quotas / targets to be studied and strengthened wherever required.

Routing, Scheduling & Time management

Routing to reduce travel time & cost with a view to maximize coverage (PJP) Scheduling decide on the time required for activities involved viz. sales call,
service call, travel time, reporting and paper work, waiting time etc. and schedule a typical days working hours.

Time management - support of technology laptops, mobiles, reporting

softwares, ERP, audio / video conferencing, motorized movements vs. public transport

Induction & training

Induction Company, product, customer, competition, selling

skills / role plays, case studies, simulated exercises, exposure to related functions viz retail shop, warehouse, logistics

Commercial T&C terms of payment advance, direct

credit, documents through bank, bank guarantees, pricing, LD penalty, central excise duty, central sales tax (CST), value added tax (VAT) etc.

Daily working & reporting on the job training,

mentoring, online training, capturing & reporting of daily work, working sequence & discipline

Sales Training

Decision Aims, Content, Methods, Execution & Evaluation

ACMEE- method

Execution trainer sales background, vision, energy,

perseverance short term & long term, time table, agenda, training aids, feedback from trainees before, during, after the training programme and monitoring of effectiveness post the training programme.

Evaluation reactions, learning, behaviour, results w.r.t.

sales, profits, customer satisfaction, number of new customers & market penetration through company data, market survey, supervisors judgement periodically Reinforcement

through refresher training, on-the-job mentoring and online follow-up

Motivation

Motivation The desire to spend effort to fulfill a need is

MOTIVATION. Derived from Latin word movere meaning to move

Dimensions Intensity (physical & mental effort),

persistence (how much & how long perseverance) and direction (customer category, product category..)
Intensity Direction Persistence Outcome

Types intrinsic (permanent) ; extrinsic ( pay-off related)

Motivation .. Contd. 1

Why least supervised, remote locations, frustration of rejection

need to remain self starters

Theories
Maslows

hierarchy of needs Herzbergs dual factor Vrooms expectancy Churchill, Ford & Walker model

Tools in motivational mix

Motivation .. Contd. 2

Motivation through leadership

Demonstrate

good examples Transparent communication Interpersonal contact Recognize a job well done - make it known Reprimand privately, politely but firmly Appear to be fair more important than being fair transparency in deeds & deals

Sales Force Compensation

Seven roles of .

Provide a living wage Provide a motivational platform Fair foundation - equal pay for equal performance Simple to understand and comprehend / relate-to Reflective of performance changes Economical to administer Unify company & individual goals

Types
Only salary ( productivity not required to be measured) Only commission..(industry specific e.g. insurance, real estate) Combination .. ( productivity orientation)

Sales meetings, reviews & leadership

Sales personnel usually not satisfied with hygiene factors alone viz compensation, working
environment, supervision, fringe benefits, reimbursements etc

They require motivation & job satisfaction through

challenges, responsibility+, promotion, regular communication and above all recognition.

Sales management uses 2 main mechanisms to stimulate these needs : sales meetings & contests.

Sales meetings, reviews & leadership contd.

Sales meetings A-C-M-E-E approach; local;

regional; national; audio / video ; monthly ; quarterly ; annual ; stag ; with spouse etc

Sales contests to provide extra incentives to increase

sales volume or to get more profitable sales volume or both AND to fulfill individual needs for achievement, recognition, esteem, selfactualization AS WELL AS develop team spirit, boost team morale increased productivity.

Sales reviews - essential component of both sales

meetings as well as sales contest

Sales Leadership uses sales meetings & contests

as effective tools to enhance sales effort & improve productivity.

Evaluation, audit & control of sales force

Control comprises of

Establishing performance standards Capturing / recording actual performance Evaluating performance against standards Taking corrective actions

Evaluation, audit & control contd.1

Quantitative performance standards (11) 1.quotas/targets;

2.sales expense ratios; 3.territorial profit margin ratios; 4.territorial market share; 5.outlet coverage index; 6.call frequency; 7.calls per day; 8.order call ratio;9.average cost per call; 10.average order size; 11.nonselling activities;12.combination of one or more of above

Qualitative performance standards (11) 1.product

knowledge ; 2.customer relations; 3.service follow-up; 4. punctuality; 5. attitude; 6. dress & appearance; 7. diligence; 8. cooperation; 9.adaptability; 10. reliabiity; 11. accuracy evaluation judgement based bias factor

Evaluation, audit & control contd.2

Recording actual performance

Sales force reports (11) 1.work plan( to plan the work & work the
plan); 2.calls made; 3.expenses; 4.new business; 5.lost sales; 6.damage & expiry; 6. market stock; 7. shelf life - market stock; 8. unresolved market complaints; 9. settlement of trade claims; 10. EPOB; 11. working day time utilisation

Evaluating performance against standards

Quantitative parameters mathematics (80% weightage) Qualitative parameters judgement (20% weightage)

Evaluation, audit & control contd.3

Market / Sales force Audit ( Customer feed-back)

An average business losses half of its customers in 5 years; half of its employees in 4 years; and half of its investors in a year due to certain shortcomings / weaknesses Marketing audit - a comprehensive, systematic, diagnostic and prescriptive tool - covers companys major functions sales, marketing, purchase, finance, logistics, HR with a view to find out

What is wrong Why it went wrong Corrective actions required

Evaluation, audit & control contd.4

Corrective actions ( the dynamic phase of control)

Improve performance training, mentoring, coaching, rewards, contests, punishment ! Re-evaluate & adjust standards in line with market / competitive reality Adjust the criteria used in measuring the extent of achievement

Reference Text

Sales Management Still, Cundiff & Govoni

Chapters

10, 11, 12, 13, 14, 15, 16, 18 & 19

Sales & Distribution Management Havaldar & Cavale

Chapters

6&7

Class Quiz-5

A-C-M-E-E Approach to Sales Training ( Kiplings Six Honest Serving-Men)

WHY ?

WHAT ?

HOW ?

WHO ? WHEN ? WHERE?

AIM(S)

CONTENT

METHOD(S)

EXECUTION

EVALUATION

(Modify, Redesign, Repeat & so forth)

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Hierarchy of Human Needs as visualized by AH Maslow

Self Actualisation Self fulfillment & self development Esteem Needs Status, Recognition, Reputation, Prestige Social Needs Acceptance, Belongingness, Love, Friendship Safety & Security Needs Safety, Job Security & Income Security Basic Physiological Needs Food, Shelter, Clothing, Health Care

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Maslow & Herzberg Models in Comparison

Self Actualization MOTIVATION FACTORS Achievement Work Challenges Recognition Growth Potential Promotion Responsibility HYGIENE FACTORS Interpersonal Relations Social Security Work Conditions Salary Personal Life Peers, Supervisors, Subordinates Company Policy, Job Security

Esteem

Maslows Need Hierarchy

Physiological

Herzbergs Two Factor Model

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VROOMS EXPECTANCY MODEL OF MOTIVATION

Perceived Performance Rewards /Punishments Relationships

Perceived Effort - Performance Relationship

Individual Needs (Goals)

Individual Behavior (Effort)

Individual Performance

Organizational Rewards / Punishments

RECYCLING
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CHURCHIL, FORD AND WALKER MODEL OF SALESFORCE MOTIVATION

Motivation

Effort

Performance

Reward

Satisfaction

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Tools Motivational Mix

Financial Rewards / Compensation
Non Financial Rewards / compensation

Financial Compensation Plan Salary Commission Bonus payments Fringe benefits Combination Sales Contests

Promotion Sense of Accomplishment Personal Growth Opportunities Recognition Job Security Sales Meetings & Conventions Sales Training Programmes Job Enrichment Supervision

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