Salesperson Performance: Behavior, Role Perceptions, and Satisfaction CHAPTER 6 Salesperson Performance: Behavior, Role Perceptions, and Satisfaction Routledge 2013

Changing Role of Sellers Sales revenue may oversimplify sales effectiveness Are sellers as important as product? Sellers slightly more important, but salesperson + company create synergy Should companies invest in sales or product? Many are investing in product while using alternative selling channels Routledge 2013 Source: HR Chally Group (2009).

Learning Objectives Understand salesperson performance model Identify components of the model Discuss role perception process Understand why the role of salesperson is susceptible to role issues Discuss how role conflict, role ambiguity, and role accuracy influence a salesperson’s role perceptions Routledge 2013

Determinants of a Sales Person’s Performance Routledge 2013

The Model Job performance a function of five basic factors Role perceptions Aptitude Skill level Motivation Personal, organizational and environmental variables Routledge 2013

Role Perceptions Role accuracy – degree to which a salesperson’s perceptions of role partners’ demands are accurate Role conflict – salesperson believes role demands of two or more role partners are incompatible Role ambiguity – salesperson believes he/she does not have information necessary to perform job adequately Routledge 2013

Aptitude Enduring personal characteristics that determine individual’s overall ability to perform a sales job Physical factors – age, height, sex, and physical attractiveness Aptitude factors – verbal intelligence, mathematical ability and sales expertise Personality characteristics – empathy, ego, sociability, aggressiveness, and dominance Routledge 2013

Aptitude Characteristics The following are a list of characteristics that make up a person’s aptitude: Cognitive Abilities Intelligence Verbal Intelligence Sales Aptitude Math Ability Routledge 2013

Personality The following are personal traits that reflect an individual’s personality: Responsibility Dominance Sociability Self-esteem Creative/flexibility Need for achievement Need for power Routledge 2013

Skill The following are the components of skill, or learned proficiency for performing tasks: Vocational skills Sales presentation Interpersonal General management Vocational esteem Routledge 2013

Motivation Effort willingly expended on activities associated with the job Function of: Expectancy – estimate of effort required to improve performance Valences of performance – perception of the desirability of attaining performance improvement Routledge 2013

Different Salespeople Require Different Drivers A more profound meaning Delight An objective Team success Leadership Rewards Routledge 2013

Leadership: Understanding the Value of Value Sales culture of meaning One-on-one understanding of your people Recognition and reinforcement Routledge 2013

Personal and Organizational Variables Job experience Closeness of supervision Performance feedback Influence in determining standards Span of control Amount of role conflict Perceived ambiguity Routledge 2013

Organizational Citizenship Behaviors (OCBs) Sportsmanship Civic virtue Conscientiousness Altruism Routledge 2013

Critical Global Sales Skills Appreciation of cultural differences Creative problem solving Ability to let business relationships develop Possess strong technology skills Routledge 2013

Rewards Extrinsic – controlled by people other than the salesperson Intrinsic – salespeople primarily attain for/within themselves Routledge 2013

Satisfaction Dimensions The job itself Fellow workers Supervision Company policies and support Pay Promotion/advancement opportunities Customers Routledge 2013

Components of Job Satisfaction Routledge 2013

Inaccurate role perceptions Ambiguity Conflict Inaccurate role perceptions Psychological stress Anxiety Lowered performance Routledge 2013

Role Development Stages Role partners communicate expectations Salespeople develop perceptions Salespeople convert perceptions into behaviors Routledge 2013

Sales Perceptions of the Job Routledge 2013

Vulnerability of Salesperson’s Role Operate at firm’s boundary Performance affects many others Role changes often, is innovative Routledge 2013

Sales Technology Can Improve Sales Performance Salespeople are now more mobile and connected than ever Difficult to get salespeople to adopt new technology, but when they do so, they can be more efficient and reap bigger rewards Input data anywhere Share data Improve responsiveness Routledge 2013

Conflict and Ambiguity Different role partners mean different expectations Perceived role expectations are consistent among salespeople Role ambiguity plagues many salespeople in some aspect of their job Salespeople often perceive conflict between company policies or expectations and customer demands Routledge 2013

Psychological Consequences of Conflict and Ambiguity Salesperson becomes the “person in the middle” w/ conflicting expectations Perceived lack of necessary information causes loss of confidence Perceived role conflict affects extrinsic job satisfaction Role ambiguity affects extrinsic and intrinsic job satisfaction Routledge 2013

Behavioral Consequences of Conflict and Ambiguity Dysfunctional behavior Increased turnover Satisfaction and performance correlate positively Routledge 2013

Consequences of Job Perceptions Routledge 2013

Managing Conflict and Ambiguity Experience reduces role conflict Increased voice in role definition reduces role conflict Close supervision reduces ambiguity Input in evaluation standards reduces ambiguity Close supervision can increase conflict Routledge 2013

Role Accuracy Correct understanding of job performance expectations Price negotiations Promise of shorter delivery times Handling customer back charges and adjustments Routledge 2013

Common Activities for Industrial Salespeople Selling Working with orders Servicing the product Information management Servicing the account Routledge 2013

Common Activities for Industrial Salespeople Conferences/meetings Training/recruiting Entertaining Out of town traveling Working with distributors Routledge 2013 Source: Developed from variables by William C. Moncrief, “Selling Activity and Sales Position Taxonomies for Industrial Salesforces,” Journal of Marketing Research, 23 (August 1986), pp. 261-–270 and William C. Moncrief, “Ten Key Activities of Industrial Salespeople,” Industrial Marketing Management, 15 (November 1986), pp. 309–317.

Common Performance Criteria for Industrial Salespeople Total sales volume, increase over last year Degree of quota attainment Selling expenses, decrease versus last year Sales profitability, increase over last year New accounts Administrative performance improvement Customer service improvement Routledge 2013

Common Rewards for Industrial Salespeople Pay Promotion Nonfinancial incentives (contests, travel, prices, etc.) Special recognitions (clubs, awards, etc.) Job security Feeling of self-fulfillment Feeling of worthwhile accomplishment Opportunity for personal growth and development Opportunity for independent thought and action Routledge 2013