Chapter 7 Selecting the Global Sales Force Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis C. Simintiras

Introduction Sales force selection one of most important decisions made by sales manager –Operate independently, at great distances, in culturally distinct situations –Essential to hire highly skilled & competent salespersons

Hiring Process Hiring process consists of four steps: –Determining the skills, knowledge and attitudes required for the open position –Attracting sufficient applicants –Conducting an interview process that accurately assesses applicant qualifications –Making an offer to one or more applicants

Importance of Selection Poor selection decisions lead to turnover –Costs are staggering –Total costs include generating applicants, screening the applications, interviewing and assessing applicants, training, salary, and foregone costs of lost sales –This can equal 150% of annual salary Formalized selection process necessary

Global Sales Force Decisions Expatriates – salespersons or managers transferred from the home country –Technical expertise and a seasoned understanding of the company Local Nationals – personnel from the country of operations –Understand local markets and culture/language Third-country – salespersons or managers that work for a global firm in a third country –Global citizens with cross-cultural expertise

Characteristics of Success MNCs use educational levels, interview skills, and previous experience to gauge successful candidates (Randall & Randall 1990) –Interviews can lack reliabilty Must identify needed skills and expertise Essential to prepare for and conduct a formal interview

Characteristics of Success Aptitude – intelligence, verbal ability Personal Characteristics – self-esteem, need for dominance, sociability, power Skill levels – presentation, vocation, management Role perceptions – understand expectations of firm and customer Motivation – devoting necessary time Organizational/Environmental factors – firm prestige or reputation

Meta-Analysis In a landmark study, a meta-analysis was conducted of all previous studies (Churchill, Walker, Hartley and Walker 1985) No one area significantly contributed to success; however: –Skill levels and role perceptions appeared to be most responsible for success Areas sales managers can influence

Identifying Successful Characteristics Job Analysis – determines how salespersons currently spend time and how ideally they should devote time Job Description – describes what salesperson will be required to do Job analysis used to write job description and job description used to find correct applicants

Generating Applicants Internal Applicants – known, observed, and acculturated (e.g. engineers, manufacturing) External Applicants –Advertisements –Employment agencies –Educational institutions –Job Fairs/Career Conferences –E-Recruiting Creative External Applicants Sources –Military veterans, 400 applicants in Hong Kong

Selection Procedures A Five-Step Process: –Application Forms –Tests –Personal Interview –References –Physical Exam Steps examine different applicant areas and should be consistent and supportive

Application Form Standardized form –Provides consistent information about all applicants –Applicant must read and follow instructions –Information can be used by managers to plan interview

Tests Used as a confirmatory input to the interview process –Personality tests used to evaluate traits –Intelligence tests to assess mental abilities –Aptitude tests to measure interest or ability to perform Tests must be valid and predict success

Personal Interview Most important step of hiring process –Applicant must respond to questions and interact with interviewer –US applicants try to sell themselves –Not the case in other cultures Three types of interviews –Structured, Unstructured and Stress –Each has advantages and disadvantages

References How has applicant performed in the past? –Speak to former employers Check facts of employment –Applicants primarily list references who will provide positive remarks –When permitted, ask references for other names –Check with clients, former employers, business associates, and financial references

Physical Exam Selling is hard work –Travel in diverse settings and time zones –Must be healthy and capable of performing Physical defects could negate job offer This is not legal in all nations, so sales manager must seek legal guidance when hiring

Making the Job Offer Once all applicants have been interviewed, they should be ranked Contact the best qualified and see if they are still interested—if so offer job Give applicant a specified period to accept Send a confirmatory letter for the applicant to sign and return by the deadline

Chapter Summary Selection is very important for the firm –Sales manager must determine qualifications –Attract a sufficient pool of applicants –Interview and select the “best qualified” –Make the job offer Chapter provides manager with guidance –Following process increases probability of hiring the correct salesperson

Discussion Questions What are the advantages and disadvantages of hiring expatriate, local, and third-country salespersons? What is the relationship between a job analysis and a job description? Why is the personal interview often called the most important step in the hiring process?