Chapter 8 Motivating a Sales Force I believe I can fly, I believe I can touch the sky! R. Kelly, Space Jam Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. MOTIVATION IS THE CHOICE OF AN INDIVIDUAL TO… 1. Initiate action on a certain task … choice; 2. Expend a certain amount of effort on that task … intensity; 3. Persist in expending effort over a period of time … persistence. The amount of effort the sales person desires to expend on each activity associated with the job. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 8-2 Motivational Conditions Are the rewards worth the effort? NO YES Does better YES performance lead to greater rewards? NO Does more effort YES lead to better performance? NO The same or less effort Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. GREATER EFFORT Fig 8-3 Maslow’s Hierarchy of Needs… Fulfilled through: Self-development, challenge. Managerial actions: Provide/offer advanced training, assignments to special projects, more responsibility and authority. Fulfilled through: Status, recognition. Managerial actions: Recognize sales rep achievements personally and publicly through title changes, commendation letters, promotions. Fulfilled through: Affiliation, friendship, acceptance. Managerial actions: Use team selling, hold social functions, distribute employee newsletters, hold sales meetings, mentoring. Fulfilled through: Job security, safety, income security. Managerial actions: Provide safe work environment, set mutually agreed-upon performance standards, communicate job performance expectations and consequences of failure to perform. Fulfilled through: Food, shelter, clothing, health care. Managerial actions: Provide/offer adequate income and good benefits package. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Hertzberg’s Dual-Factor Theory HYGIENE FACTORS MOTIVATION FACTORS • pay • recognition • company policies • responsibility • supervision conditions • challenge • work • growth opportunities Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 8-5 Salespeople’s Perceived Reasons for Failure and Their Motivational Impact Motivational impact Negative Perceived reasons Positive Ability Seek help; get Become frustrated additional training; and discouraged; ask for supervisor’s give up assistance; increase effort Effort Work harder; make more calls; work longer hours No change in behavior Strategy Change selling strategy; adapt the presentation No change in behavior Task difficulty Work harder; change strategies; or seek help Become frustrated and discouraged; give up Luck No change in behavior Avoid the situation Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Career Stages Exploration Establishment Primary concern is improving skills and performance Lack of promotion may cause disengagement or quitting New commitments make pay important High expectancy instrumentality, high valence for promotion and pay Maintenance Primary concern is finding a suitable occupation Underdeveloped skills and knowledge Many drop out or are terminated Low expectancy instrumentality, high valence for personal growth Primary concern is maintaining position, status, and performance Have highest sales volumes and percentage of quota and pay High valence for recognitions, respect, and pay Low valence for promotion Disengagement Primary concern is preparing for retirement and/or developing outside interest Low valence for higher order and lower order rewards Low instrumentality Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Contest Design Elements Promote & Publicize Sales Contest Design Equally Attainable Goals Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Attractive Variety of Prizes Causes of Plateauing No clear career path Not managed adequately Bored Burned out Economic needs met Discouraged with company Overlooked for promotion Lack of ability Avoiding risk of management job Reluctance to be transferred Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.