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Salesperson

Performance:
Motivating the
Sales Force

Psychological Process of
Motivation
Motivation is an individuals choice
to:
Initiate action on a certain task
Expend a certain amount of effort on
that task
Persist in expending effort over a period
of time

Bases for Motivation


Expectancies the perceived linkages
between more effort and achieving
improved performance
Instrumentalities the perceived
relationship between improved
performance and receiving increased
rewards
Valence for rewards the perceived
attractiveness or intrinsic value the
rewards the salesperson might receive

Expectancy
A salespersons perceived link between job
effort and achieved performance
Estimates the probability that increased
effort will lead to improved performance
Accuracy of expectancies is based on ones
understanding of the relationship between
effort and achievement
Magnitude of expectancies is the perceptual
value assigned to an expectancy based on
the ability to control the required
performance

McGraw-Hill/Irwin

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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights

McGraw-Hill/Irwin

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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights

Instrumentalities
Link job performance and available rewards.
Estimate of the likelihood that an improvement
in performance will lead to a specific reward.
Accuracy of Instrumentalities - based on the
perceptual clarity of understanding the
relationship between improvement,
achievement and available rewards
Magnitude of Instrumentalities - an estimate of
the intrinsic value of firms compensation plan

Valences for Rewards


Measure perceptions of the desirability of
receiving increased rewards through
improved performance
Other rewards may equal or exceed the
value of increased financial compensation
The kinds of rewards deemed most desired
and most effective for motivation varies per
individual
Satisfaction with current rewards depends
upon perceived value

Personal Characteristics Affecting


Motivation
Individual satisfaction with current
rewards
Demographic variables
Job experience
Psychological variables personality
traits and attribution of meaning to
performance

Satisfaction
Workers currently dissatisfied with their
rewards value lower-order rewards most
highly
Maslows hierarchy of needs
Herzbergs theory of motivation
Alderfers existence and growth theory

High-order rewards will be valued more


highly after lower-order needs for rewards
have been satisfied
Salespeople satisfied with their current
income (a lower-order reward) assign lower
valences to earning more pay

Demographic
Characteristics
Older, more experienced salespeople
obtain higher levels of low-order rewards
Satisfaction with the current level of
lower-order rewards may also be
influenced by the demands and
responsibilities the sales rep must satisfy
with those rewards
Individuals with more formal education
are more likely to desire opportunities for
higher-order rewards

Job Experience
More experience provides
clearer idea of how expending effort
affects performance
understanding of how superiors
evaluate performance
how certain performance leads to
rewards

Magnitude of expectancy perceptions


relates to experience.

Psychological Traits
Motivation seems to be affected by
psychological traits.
Strong achievement needs coincide
with higher valences for higher-order
rewards
Self-esteem, perceived competence,
and ability to perform job activities
relate positively to the magnitude of
expectancy estimates

Performance Attributions
People try to identify and understand the causes
of major events and outcomes in their lives
Stable internal factors unlikely to change
much in the near future
Unstable internal factors vary from time to
time
Stable external factors e.g., the nature of the
task or competitive situation in a particular
territory
Unstable external factors may change next
time

Management Implications
Relationships between characteristics
and motivation levels have two broad
implications for sales managers:
They suggest people with certain
characteristics are likely to understand
their jobs and their companies policies
especially well
Some personal characteristics are related
to the kinds of rewards salespeople are
likely to value and find motivating

Career Stages and


Motivation
Exploration lack of assurance
Establishment selection of selling as
an occupation and desire for career
success.
Maintenance seeking to retain present
position, high status, and achievement
Disengagement preparation for
retirement and possible loss of selfidentity

Causes of Plateauing
Lack of a clear career path
Boredom
Failure to manage the person
effectively

Solutions for the Plateaued


Salesperson

Talk with salesperson about problem


Discuss reasons and possible solutions
Conduct motivations sessions
Manage, lead and communicate
Cut salespersons responsibilities
Assign to a new territory
Inform rep on his/her responsibilities
Provide time off

Impact of Environment on
Motivation
Variations in territory potential and
strength of competition constrain
ability to achieve high levels of
performance
Understanding how and why
salespeople perform differently under
varying environmental circumstances
is useful to sales managers

Supervisory Variables and


Leadership
Closeness of supervision
Most occupations prefer relatively free from
supervision
B-2-B salespeople prefer close supervision

Span of control increased span of


control results in decreased supervision
Frequency of communication
increased communication means
decreased role ambiguity

Incentive and Compensation


Policies
Policies concerning higher-order rewards can
influence the desirability of such rewards
Preferential treatment for stars may
reduce morale
The range of financial rewards currently
received may influence the valences of
additional financial rewards
Earnings opportunity ratio
The ratio of the total financial compensation of
the highest paid salesperson to that of the
average in a sales force
higher ratio equals a higher valence

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