PART V DIRECTING THE SALES TEAM

MOTIVATING SALESPEOPLE TOWARD HIGH PERFORMANCE CHAPTER 12 MOTIVATING SALESPEOPLE TOWARD HIGH PERFORMANCE

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.

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.

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.

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?

Motivation refers to the arousal, intensity, direction, and persistence of effort directed toward job tasks over a period of time.

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.

TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX AND EXAMPLES OF EACH MOTIVATIONAL METHOD

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.

IMPLEMENTATION OF A SALES CULTURE Ceremonies and Rites

Ceremonies and rites are the elaborate, planned activities that make up a special event and often are conducted for the benefit of an audience.

IMPLEMENTATION OF A SALES CULTURE Ceremonies and Rites Stories

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.

IMPLEMENTATION OF A SALES CULTURE Ceremonies and Rites Stories Symbols

A symbol is one thing that represents another thing.

IMPLEMENTATION OF A SALES CULTURE Ceremonies and Rites Stories Symbols Language

Many companies use a specific saying, slogan, metaphor, or other language form to convey special meaning to employees.

TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR IMPLEMENTATION WITHIN THE SALES FORCE

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.

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.

FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS. “What Is the Probability of Success?” “Will I Be Rewarded for Success?” “Are the Rewards Worth It?” “Are the Rewards Fair?” Rewards Intrinsic Extrinsic Equity Determination Inputs vs. Outputs Satisfaction Intrinsic Extrinsic Motivation to Work Performance Level Feedback

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.

ARE THE REWARDS WORTH IT? Valence for rewards refers to the value the salesperson places on the reward.

Managerial Implications of Expectancy Theory 1. Increase expectancies. 2. Make performance instrumental toward positive outcomes. 3. Identify positively valent outcomes.

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.

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.

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.

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.

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.

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.

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

Voluntary Turnover Turnover refers to someone leaving their present job.

FIGURE 12.2 CLASSIFICATION OF TURNOVER

FIGURE 12.3 A SALESPERSON’S BEHAVIORAL MODEL HELPS ILLUSTRATE MOTIVATIONAL PROCESS

GET TO KNOW THE PERSONAL SIDE OF SALESPERSONS! UNDERSTAND THE SALESPERSON’S MOTIVATIONAL BEHAVIOR

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.

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

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

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.

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.

MOTIVATIONAL COACHING IS NEEDED FOR HIGH-PERFORMANCE RESULTS SALESPEOPLE HAVE BOUNDARY POSITIONS Salespeople are involved in meeting both the needs of their customers and the needs of their company.

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.

FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE

Motivational TECHNIQUES Teach teamwork Empower Communicate Hear Notice Initiate integrity Query Unify Exalt Set standards

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 high-performance sales culture. Salespeople have basic needs that influence behavior and lead to goal attainment.

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.