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Motivation, Compensation, Leadership, and Evaluation of Salespeople

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

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  1. Motivation, Compensation, Leadership, and Evaluation of Salespeople Chapter 17 DudutUripPrasetyo dprasetyo@pmbs.ac.id

  2. 17 Chapter 17-2

  3. Agenda • Motivation • Compensation and Benefit • Leader Style & Evaluation

  4. 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

  5. The Basic Sales Management Functions

  6. The Basic Sales Management Functions • Directing average • people to perform at • above-average levels • Motivational • Compensation • Leadership

  7. The Motivation Mix: Choose Your Ingredients Carefully • The basic compensation plan • Special financial incentives • Nonfinancial rewards • Leadership techniques • Management control procedures

  8. 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

  9. Exhibit 17-2: Examples of Various Salary Plans

  10. Compensation Is More Than Money, cont… • Three basic plans of financial compensation • Straight salary plan • Straight commission plan • Combination plan

  11. 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

  12. 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

  13. 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

  14. Compensation Is More Than Money, cont… • Bonus: individual or group • Across-the-board bonus • Performance bonus • Sales contests

  15. The Total Compensation Package • People choose a sales career for both nonfinancial and financial reasons • The salesperson receives numerous forms of nonfinancial compensation

  16. Exhibit 17-4: Salary and Fringe Benefits for a New Representative

  17. Exhibit 17-4: Salary and Fringe Benefits for a New Representative

  18. 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

  19. 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

  20. Exhibit 17.5: Four Basic Leadership Styles a Sales Manager Can Select From to Influence Salespeople

  21. Exhibit 17.6: A Sales Manager Can Choose One of These Leadership Styles Based on the Salesperson and the Situation

  22. Sales Management Functions • Planning • Staffing • Training • Directing • Evaluating

  23. The Basic Sales Management Functions • Evaluating the past toguide the future • Performance criteria • Conducting sessions

  24. 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

  25. Exhibit 17.8: Quantitative and Qualitative Performance Criteria

  26. 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

  27. The Basic Sales Management Functions, cont…

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