Sales management ch.7

Motivation

An individual’s choice to:

Initiate action on a task

Expend a certain amount of effort on that task

Persist in expending effort over time

Salesperson Motivators

1. Novelty and non-routine situations

2. Seeing meeting people as opportunities

3. Participative style

4. Required In Depth Expertise

5. Avoiding or minimizing confrontation

6. Sharing expertise

Expectancy Theory

Victor Vroon developed The Motivational Theory in 1964 suggesting that individuals ar motivated by a three-part belief system:

Expectancy (effort leads to performance),

Instrumentality (performance leads to outcomes), and

Valence (the value placed on the outcome)

Motivation Theory Application

Set clear expectations

Provide support

Link performance to outcomes

Ensure fairness and trust

Offer customized rewards

Set clear expectations

Ensure employees understand well expections and how their effort will lead to performance.

Provide support

Offer resources and training needed to employees to achieve their goals

Link performance to outcomes

Clearly connect performance to rewards, ensuring that the rewards are meaningful to the individual.

Ensure fairness and trust

Align promises with company policy and always deliver on them to build trust with your team.

Offer customized rewards

Recognize that different people are motivated by different things and tailor rewards to meet individual needs.

Expectancies

Perceived linkages between more effort and improved performance

Instrumentalities

Perceived relationship between improved performance and increased rewards

Valence for rewards

Perceived intrinsic value of the rewards

Expectancies—Perceived Links between Effort and Performance

Salesperson’s perceived link between job effort and performance

Estimated probability that increased effort leads to improved performance

Accuracy of expectancy estimates how clearly salesperson understands relationship between effort and achievement

Magnitude of expectancies – perception of ability to control required performance

Instrumentalities—Perceived Links between Performance and Reward

Link job performance and available rewards

Estimate of likelihood an improvement in performance will lead to a specific reward

Accuracy of Instrumentalities – perceptual clarity of understanding relationship between improvement, achievement and available rewards

Magnitude of instrumentality – the perceptual understanding that the salesperson can control or influence his or her own job performance

Valences for Rewards

Perceptions of 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 effective for motivation varies per individual

Satisfaction with current rewards depends upon perceived value

Satisfaction With Current Rewards

Workers dissatisfied with rewards value lower-order rewards

Theories of Maslow, Herburg, and Alderfer suggest that High-order rewards are valued more highly after lower-order needs have been satisfied. Meaning also that the greater the salesperson’s satisfaction with low-rewards, the higher the desire for Higher-order rewards.

Salespeople satisfied with their current income (a lower-order reward) assign lower valences to earning more pay

Demographic Characteristics and Motivation

Older, more experienced salespeople obtain higher levels of low-order rewards

Satisfaction with current level of lower-order rewards influenced by responsibilities to be satisfied

More formal education increases desire for higher-order rewards

Job experience and Motivation

More experience provides:

Clearer idea of how effort affects performance

Understanding of how superiors evaluate performance

Understanding of how certain performance leads to rewards

Magnitude of expectancy perceptions relates to experience

Psychological variables and Motivation

Traits

High achievement need

Internal locus of control

Verbal intelligence

General self-esteem

Task-specific self-esteem

Performance Attributions

People (salespeople included) try to identify and understand the causes of major events and outcomes in their lives that could also affect job performance and its outcomes.

Stable Internal Factors

Are unlikely to change much in the near future, such as personal skills and abilities

Unstable Internal Factors

May vary from time to time, such as the amount of effort expended or mood at the time

Stable External Factors

The nature of the task or the competitive situation in a particular territory

Unstable External Factors

That might change next time, such as assistance from an unusually aggressive advertising campaign or good luck

Implications on Leadership/Management

Relationships between personal characteristics an motivation have two broad implications for managers:

Suggest people with certain characteristics are likely to understand their jobs and companies’ policies well

Some characteristics are related to kinds of rewards salespeople are likely to value

Career Stages and Salesperson 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 self-identity

Plateaued Salesperson

Plateauing is a Salesperson’s early disengagement from work

Early disengagement

Causes of Plateau are:Lack of a clear career path,Boredom (mostly)Failure to manage the person effectively

Proposed Solutions include:

Clearly defined career path, Promotions within sales force, Job environment

How to Motivate Plateaued Salespeople

Require them to account for their time

Total compensation management

Get them out in the field

Positive environment

Balance the need for information with the burden of generating it

Hire the right people

Spend the resources to achieve training objectives

Ensure they have a purpose

Solutions for the Plateaued Salesperson

Talk with salesperson about problem

Discuss reasons and possible solutions

Conduct motivations sessions

Manage, lead and communicate

Cut salesperson’s responsibilities

Assign to a new territory

Inform rep on his/her responsibilities

Provide time off

Environmental Conditions/External Factors Effects on Motivation

Territory potential and strength of competition impact performance, perceptions, and motivation

Understanding how and why salespeople perform differently under varying environmental circumstances guides compensation and management policies

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 desirability of such rewards

Preferential treatment for “stars” may reduce morale

The range of financial rewards may influence valences of additional financial rewards

Earnings opportunity ratio

Total financial compensation of the highest paid salesperson compared to that of the average in a sales force

Higher Ratio = Higher Valence