MKT 363: Sales Mgmt - Chapter 6

Supervising

Observing and directing employees to ensure they understand the responsibilities of their jobs and how to carry out those responsibilities correctly.

First-Line Managers

They have individual employees reporting to them and not other managers

Formal Power

• The authority people are given to accomplish their jobs                                                

  • Legitimate (position decisions), reward (distribute rewards), coercive (ability to punish), informational (control information), and political (engage in politics)

Informal Power

Power an individual has as a result of “skills,” personalities, dispositions, and sociability levels; can exert more influence than a person with only formal power. 

• Expert (knowledge/skills), referent (liked), charismatic, connection, and moral power

Transactional Leadership

Rewarding or punishing salespeople for their performance. Views the leader-follower relationship as a process of exchange.

Transformative Leadership

Expressing care, concern, and individualized support for their salespeople. A more visionary approach that seeks to energize followers to accept ideals/achievements

• Set apart from transactional leaders because they are CHANGE AGENTS

Emotional Intelligence

Intelligence used to understand and help manage the emotions of other people in light of their own emotions

Instrumental Leadership

Provide clear guidelines, monitor activities, and provide rewards based on salespeople achieving their goals and adhering to guidelines

Participative Leadership

Support and encourage, seek input from their sales reps, and create a friendly and approachable environment

Servant Leadership

Prioritize serving customers and their salespeople

Futurize

The ability of leaders to shift from status quo and look to the future to take their organization forward. Shift to long-term strategies, embrace technology & new ideas, and welcome risks.

Humanize

A situation that challenges leaders to balance technological advances with preparing people for the future world of work. Embrace diversity, attract/retain “top talent,” reskill employees in AI, ensure the organization is committed to excellence, and humanize.

Leadership

Affecting a person/group by conveying a “vision” and a sense of purpose by providing “direction” and guidance to achieve objectives considered worthwhile by the leader. A pivotal person who helps determine which aims are to be pursued and obtains buy-in from their group.

Ten Basic Management Functions

Planning, Organizing, Time Management, Staffing, Training, Motivating, Compensation, Monitoring, Coaching, Informing

Hersey/Blanchard Leadership Model

Tells: emphasis placed on the task performed rather than on the person performing it; the manager makes the decision

Persuades: emphasis placed on the task and person; the manager makes the decision and then sells the idea to subordinates

Participates: emphasis placed on the person rather than the task; decision made jointly between manager and subordinate

Delegates: emphasis placed on neither task nor person; decision is left to subordinate who is responsible for carrying through with appropriate action

Power and Influence in Leadership

Legitimate power: leader has the right to request and/or demand action, and the subordinate has to comply

Reward power: giving benefits and rewards for cooperation

Coercive power: ability to issue punishment, negative sanctions or remove rewards (i.e., money, position, support)

Expert power: influence based on the knowledge possessed by the person and the willingness to share it

Referent power: person is admired and others want to emulate or be identified with that person

Leadership Styles (Video)

Directing: high control & low involvement; supervises employees closely & gives orders

• Used under time scrutiny, low employee ability, critical results, and low employee trust

Consulting: high control & high involvement; makes decisions & closely supervises employees & actively supports/coaches employees

• Used under low employee competence & motivation and time sufficiency

Delegating: low control & low involvement; little control is exercised

• Used when time & results are critical and high competence & motivation

Participating: low control & high involvement; shares decision-making responsibilities with those managed.

*No style is better than another