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Motivation, Compensation, Leadership, and Evaluation of Salespeople. Chapter. 17. Dudut Urip Prasetyo dprasetyo@pmbs.ac.id. 17. Chapter. 17- 2. Agenda. Motivation Compensation and Benefit Leader Style & Evaluation. Motivation of the Sales Force. Motivating salespeople at two levels
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Motivation, Compensation, Leadership, and Evaluation of Salespeople Chapter 17 DudutUripPrasetyo dprasetyo@pmbs.ac.id
17 Chapter 17-2
Agenda • Motivation • Compensation and Benefit • Leader Style & Evaluation
Motivation of the Sales Force • Motivating salespeople at two levels • Motivation of the individual salesperson • Motivation of the entire sales force • Motivation is the arousal, intensity, direction, and persistence of effort directed toward job tasks over a period
The Basic Sales Management Functions • Directing average • people to perform at • above-average levels • Motivational • Compensation • Leadership
The Motivation Mix: Choose Your Ingredients Carefully • The basic compensation plan • Special financial incentives • Nonfinancial rewards • Leadership techniques • Management control procedures
Compensation Is More Than Money • Sales performance can be rewarded in three fundamental ways • Direct financial rewards • Career advancement • Nonfinancial compensation • Although a sales reward system is not the only means of motivating salespeople, it is the most important
Compensation Is More Than Money, cont… • Three basic plans of financial compensation • Straight salary plan • Straight commission plan • Combination plan
Compensation Is More Than Money, cont… • Straight salary plan • Advantages to the salesperson • Advantages to management • Disadvantages to the straight salary plan • When to use the straight salary plan
Compensation Is More Than Money, cont… • Straight commission plans • Three basic elements of straight commission • Pay is related directly to performance • A percentage rate of commission is attached to the unit • A level at which commissions begin or change is established
Compensation Is More Than Money, cont… Combination plans • Salary and commission • Salary and bonus: individual bonus or group bonus • Salary, commission, and bonus: individual bonus or group bonus
Compensation Is More Than Money, cont… • Bonus: individual or group • Across-the-board bonus • Performance bonus • Sales contests
The Total Compensation Package • People choose a sales career for both nonfinancial and financial reasons • The salesperson receives numerous forms of nonfinancial compensation
Exhibit 17-4: Salary and Fringe Benefits for a New Representative
Exhibit 17-4: Salary and Fringe Benefits for a New Representative
Nonfinancial Rewards Are Many • Achievement or recognition awards • Transfer to larger, more challenging sales territories or promotion to key account management • Sales manager’s praise
Leadership Is Important to Success • Leadership • The leader’s task and relationship behavior • Task behavior involves the leader in describing the duties and responsibilities of an individual or group • Relationship behavior is people-oriented
Exhibit 17.5: Four Basic Leadership Styles a Sales Manager Can Select From to Influence Salespeople
Exhibit 17.6: A Sales Manager Can Choose One of These Leadership Styles Based on the Salesperson and the Situation
Sales Management Functions • Planning • Staffing • Training • Directing • Evaluating
The Basic Sales Management Functions • Evaluating the past toguide the future • Performance criteria • Conducting sessions
Performance Evaluations Let People Know Where They Stand • Management control system • Performance evaluation – what is it? • Reasons for performance evaluation • Who should evaluate salespeople? • When should salespeople be evaluated? • Performance criteria • Quantitative performance criteria • Qualitative performance criteria • Conducting the evaluation session
Exhibit 17.8: Quantitative and Qualitative Performance Criteria
Performance Evaluations Let People Know Where They Stand, cont… • Conducting the evaluation session • Both manager and salesperson should be prepared for the interview • Be positive • Actually review performance • Finalize the performance evaluation • Summarize the total performance evaluation • Develop mutually agreed-on objectives • Formalize evaluation and objectives