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AVR Mahadev, M.Sc, PGDBM 1 Research Scholar, Management studies, Jain University, Email: [email protected]* Faculty CMS B-School, Jain University, Bangalore * Please contact this author for any correspondence on the article Management Style of an organization its implications on being an Enterprise salesperson’s customer Abstract This paper attempts to measure the attitude of the Enterprise salesperson towards their customers. Their predisposition if any, can be a hindrance in making a sales interaction successful. The study thus undertaken has revealed the intensity of such predisposition among the salespersons on the factor of the management style, the enterprise is known or assumed to have. This leads to classifying the customers as a preferred customer or a non-preferred customer based on the data known of the enterprises. It has been found that there is evident discrimination of customers by the enterprise salespersons. The intensities of these discriminations varied across different enterprise salespersons studied. It was also found that the intensity of the discrimination between preferred and non-preferred customers was varying across the industries for the factors of discrimination. The bias thus exhibited by the salespersons is more because of the predisposition they have towards the customers. This demonstrates the very clear case of a preset mind influencing the behavior of the salespersons. As has been studied, this paper details the findings in the factors that the enterprise salespersons have in the classification of enterprise customers to be preferred or non-preferred customers. The style of management in the organization does have an impact on the treatment the salespersons have towards the respective organizations. ADALYA JOURNAL Volome 8, Issue 11, November 2019 849 ISSN NO: 1301-2746 http://adalyajournal.com/

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Page 1: Management Style of an organization its implications on ...adalyajournal.com/gallery/78-nov-2324.pdf · an Enterprise salesperson’s customer Abstract This paper attempts to measure

AVR Mahadev, M.Sc, PGDBM1

Research Scholar, Management studies, Jain University, Email: [email protected]*

Faculty – CMS B-School, Jain University, Bangalore

* Please contact this author for any correspondence on the article

Management Style of an organization – its implications on being

an Enterprise salesperson’s customer

Abstract

This paper attempts to measure the attitude of the Enterprise salesperson towards their customers.

Their predisposition if any, can be a hindrance in making a sales interaction successful. The study

thus undertaken has revealed the intensity of such predisposition among the salespersons on the

factor of the management style, the enterprise is known or assumed to have. This leads to

classifying the customers as a preferred customer or a non-preferred customer based on the data

known of the enterprises.

It has been found that there is evident discrimination of customers by the enterprise salespersons.

The intensities of these discriminations varied across different enterprise salespersons studied. It

was also found that the intensity of the discrimination between preferred and non-preferred

customers was varying across the industries for the factors of discrimination.

The bias thus exhibited by the salespersons is more because of the predisposition they have

towards the customers. This demonstrates the very clear case of a preset mind influencing the

behavior of the salespersons.

As has been studied, this paper details the findings in the factors that the enterprise salespersons

have in the classification of enterprise customers to be preferred or non-preferred customers. The

style of management in the organization does have an impact on the treatment the salespersons

have towards the respective organizations.

ADALYA JOURNAL

Volome 8, Issue 11, November 2019 849

ISSN NO: 1301-2746

http://adalyajournal.com/

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Keywords: Salesperson, enterprise selling, predisposition, preferred customers, Differential

treatment.

INTRODUCTION

A primary requisite for a Salesperson’s job is the ability to interact with external prospects and

customers as part of the effort to complete the required transaction in the steps towards contribution

to the revenue of the organization. It thus comprises of a lot of conversations through interactions

with the prospective customers. The conversations can be verbal, virtual, telephonic, and email

depending on the tools of communication used. During such conversations, the prospective

customers do create impressions in the salesperson’s mind. (Wise, G. L. (1974). Through these

interactions, the salesperson does make a mental map of the customers on various parameters. The

salesperson’s experience over a range of time sets a scale of mapping his/ her own customers and

thus create an image of the customer in the context. A stereotyping is thus made in categorizing

customers into various types by own perceptions developed by his/her previous experiences

(Paparoidamis, N. G., & Guenzi, P. (2009). This is applicable to the salespersons across all formats of

sales. This stereo typing triggers a behavioral approach the salesperson has towards these

customers. This stereotyping does have implications on the expectations the salesperson has in the

process of selling. Therefore, each of the salespersons makes up their mind on the stance they

would take in their interaction with each of the customers.

This study focused on the impact the style of management of the prospective organization has, in

the stereotyping, and the stance, enterprise salespersons take, in their interactions with customers.

A regular continuous process. (Stock, R. M., & Hoyer, W. D. (2005). This stereotyping is a result of

their mindsets developed over time and thus leading to a predisposition towards each of the

customer. There are various considerations each salesman will have in his mind to “classify” the

prospective customers to be “Preferred” or Non-Preferred”. (Singh, R., & Venugopal, P. (2015), Chen,

Y., Rivas, A. A., & Wu, W. (2018).

Each sales interaction requires a sequence of efforts by the salesperson to make it successful. This

sequence of efforts is what a salesperson needs to put in to complete a sale. These efforts are

influenced by the image and hence the predisposition the salesperson has on the prospective

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customer. ((Gillis et al, 1998).

This study thus focused on the impact of the style of management prevalent in the organization in

the context to be preferred or non-preferred (Evans et al, 2000) and the intensity of the efforts in the

process of enterprise selling. The results are varying across businesses largely based on their nature

of target customers, the extent and intensity of knowledge of the prospective organization.

Literature Survey

Despite its importance in sales, listening and the impact on the customer interaction is a neglected

factor in research with limited studies examining the phenomenon since the work conducted by

Castleberry and Shepherd (1993) and Ramsey and Sohi (1997). Knowledge of the importance of

listening that does have an impact on sales and the processes involved is very vital for salespersons.

Using meta-analytical techniques, a study summarizes approximately 20 years of research on

salesperson listening. The obtained results show that listening is a right tool for customer-oriented

salespersons show care for customers, which helps them adapt their selling to fit demands of the

customers. Salesperson relational and sales outcomes are driven by listening through direct and

mediated mechanisms. (Itani, O. S., Goad, E. A., & Jaramillo, F. (2019).

An organization’s customer orientation, centralization, and employee relations with individuals in

the organization were significantly related to have customer orientation or selling orientation, or

both. Organization’s customer orientation and perceptions of the organization culture were

positively related to a salesperson’s extent of customer orientation and negatively to selling

orientation. Centralization was more effort selling and not to customer. Customer orientation helps

in the salesperson’s performance, while selling orientation does not have a positive impact. (Boles,

J. S., Babin, B. J., Brashear, T. G., & Brooks, C. (2001).

The results from a field study and an experiment indicate that salesperson’s orientation adaptability

depends on a salesperson’s customer oriented characteristics. Salespeople are subject to a success

trap in spending more effort on customer orientation. Thus, a salesperson’s customer portfolio

influences salesperson behaviors and performance. This influences the management of

ambidextrous behaviors in customer engagement. (Lam, S. K., DeCarlo, T. E., & Sharma, A.

(2019).

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Jaramillo et al demonstrated that SOCO is a good predictor of salesperson job performance. High

performance kicks off when salespersons put their effort on identifying the customer’s individual

needs and offer products to satisfy those needs. (Jaramillo, F., Ladik, D. M., Marshall, G. W., &

Mulki, J. P. (2007).

Customer orientation (CO) and long-term relationships customers are the preconditions for

maintaining growth and profit. Differentiators of special relationship, targeted communication,

and personalized relationships build up customer liking of the brands. (Valenzuela, L. M., Mulki,

J. P., & Jaramillo, J. F. (2010).

Franke, G. R., & Park, J. E. (2006) test alternative models of precursors and consequences of

adaptive selling behavior (ASB) and customer orientation (CO).

Keillor, B. D., Stephen Parker, R., & Pettijohn, C. E. (2000). Relationship-oriented characteristics

and individual salesperson performance. Journal of Business & Industrial Marketing, 15(1), 7-22.

A seller and customer firm work together with a goal to have value either side. Both direct and

indirect functions of customer relationships contribute to the value perceived by the supplier. The

results of this study have considerable consequences for the management of inter-organizational

relationships and networks regarding the process of how value can be created in business markets.

(Walter, A., Ritter, T., & Gemünden, H. G. (2001).

Methodology

Size of the enterprise is one of the various factors that are involved in the segmentation of the

customers for the offerings, products or solutions, by an enterprise. The factors thus taken into

consideration sets the entire sales process to focus on those organizations that fit into the

description of the targeted enterprises. All prospects of a sale may not fit perfectly into the

segments of enterprises that are focused upon. An enterprise salesperson can therefore have

predispositions in the interactions with prospective customers based on the Enterprise size (in

Turnover) (Johnston, M. W., & Marshall, G. W. (2013).

In the interaction the salesperson has with the prospective customer, the following are the

sequential steps for an enterprise sale that need the involvement the salesperson with the customer.

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• Seeking Information from the enterprise of their problems, nature of business

specifications, etc. (Liao, S. H., Chen, Y. J., & Hsieh, H. H. (2011)

• Pre Sales Analysis is the process or a set of activities/sales normally carried out before a

customer is acquired, though sometimes presales also extends into the period the product

or service is delivered to the customer. (Guenzi, P. (2002)

• Time Spent with the prospective enterprise in the complete interaction from the beginning

to the time the conclusion is arrived at. More time is spent with more prospective enterprise

customers (Tsai, W. C., & Huang, Y. M. (2002).

• Negotiation scope is the wide breadth or the accommodation provided to the either parties

in the process of a negotiation before an agreement or disagreement is arrived at, More the

prospect of a deal, more is the scope of negotiations and vice versa (D'Andrea, R. (2005)

• Solution Alternatives given to the customer enterprises to match both the capabilities of

the solution provider and the solution seeking organization.

• Cross functional teams involved are the teams across functions beyond the sales function

who are involved in understanding the customer requirements and offering the support

activities required.

The above factors are thus the dependent variables which influence the enterprise salespersons in

their involvement in the selling process with the prospective client organizations. The level of

involvement in these steps is thus an indicator of the predisposition the salespersons have, in their

preference of having the respective organization as a customer.

Therefore, the six steps in their interaction with the different organizations were taken into account

to measure of their involvement on a scale of 1-5. That indicates the preference they would have

in each of the steps to make the organization a client for their business. The one factor as discussed

earlier was the style of management in the enterprise to set their preferences for the company to

be their customer. The various types of management considered were namely

1)Directive - Do the way I tell you

2) Participative - Everyone has input

3) Authoritative - Firm but fair

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4) Affiliative - People first, task second

The intensity and scope of these six variables may not be uniform across all the salespersons.

(Chen, Y, Rivas, A. A., & Wu, W. (2018). Also since the preference of a company being a

customer has an influence on the salespersons in the involvement in each of the steps in the sales

process, all the six steps were put forward to the enterprise salespersons to measure their

involvement in each of them on a Likert scale. 5 being the maximum and 1 being the least of their

efforts. Thus the conceptual model of the study can be put as below.

Data Collection

Questionnaires (Appendix 1) were mailed online to various salespersons, whose target customers

are enterprises. Based on the responses that were thus obtained from them, data of 158

questionnaires across various categories of enterprise salespersons have been analyzed.

The questionnaire had three parts. Part 1 was used to capture the specific product/ solutions the

salesperson deals with along with the designation currently held, number of years of experience,

number of years in the present role, and diversity of the industries worked in

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Part 2 was used to understand the specifics of the target segment on the characteristics which the

salesperson carries in his/ her mind for the preferred customer in terms of the style of management

of the enterprise. The styles of management were as discussed above in the methodology.

Part 3 of the questionnaire was a Likert Scale (1-5) based measure of the involvement of the

salesperson in the six steps of the sales process. Here 1 is the least amount of involvement in the

steps of the sales process, while 5 represents the maximum involvement

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Analysis of Data

Table-1.1: Post Hoc Analysis

Seeking Information from the enterprise – Management Style

Preferred Seeking Information

Tukey Ba,b

Management Style N

Subset

for alpha

= 0.05

1

Directive - Do the way I tell you 4 4.25

Participative - Everyone has input 68 4.25

Authoritative - Firm but fair 49 4.27

Affiliative - People first, task

second 37 4.35

Inference:

In the Preferred category of enterprise customers, Directive and participative style of

management is given the least amount of preference while organizations that have

authoritative and affiliative styles of management are given higher preferences in the

effort to seek information.

In the Non-Preferred category of enterprise customers, effort in seeking information is

given more for participative style of management and then for Authoritative style of

management.

Non- preferred seeking info

Tukey Ba,b

Management Style N

Subset for

alpha =

0.05

1

Directive - Do the way I tell you 4 1.75

Affiliative - People first, task

second 37 1.97

Authoritative - Firm but fair 49 2.31

Participative - Everyone has input 68 2.49

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Table-1.2: Post Hoc Analysis

Presales Analysis based on Management Style

Preferred Enterprises

Tukey Ba,b

Management Style N

Subset for alpha =

0.05

1

Participative - Everyone has

input 68 4.18

Authoritative - Firm but fair 49 4.37

Affiliative - People first,

task second 37 4.46

Directive - Do the way I tell

you 4 4.75

Inference:

For the required process of pre sales analysis, preferred types of enterprises are those that

have a directive styles of management of the organizations

For the non-preferred category of customers, Participative style of management has

relatively higher preference than the Directive type of management.

Presales analysis non –preferred

Tukey Ba,b

Management Style N

Subset for

alpha = 0.05

1

Directive - Do the way I

tell you 4 1.75

Authoritative - Firm but

fair 49 2.16

Affiliative - People first,

task second 37 2.35

Participative - Everyone

has input 68 2.47

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Table-1.3: Post Hoc Analysis

Time Spent with the Enterprise – Management Style

Preference For Time Spent

Tukey Ba,b

Management Style N

Subset for alpha

= 0.05

1

Participative - Everyone

has input 68 4.18

Directive - Do the way I

tell you 4 4.25

Authoritative - Firm but

fair 49 4.33

Affiliative - People first,

task second 37 4.51

Inference:

Affiliative type of management has greater preference for spending the time in

comparison to the other styles of management.

But in the non-preferred types of customers, Directive style of management has greater

affinity for the salespersons.

Non-Preference For Time Spent

Tukey Ba,b

Management Style N

Subset for alpha =

0.05

1

Affiliative - People first,

task second 37 2.05

Authoritative - Firm but

fair 49 2.24

Participative - Everyone

has input 68 2.40

Directive - Do the way I

tell you 4 2.50

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Table-1.4: Post Hoc Analysis

Scope for Negotiation - Management Style

Inference:

Few of the sample population have the highest preference for directive style of

management to negotiate as compared to the participative type of management which is

represented by the highest number of respondents of salespersons.

The trends are opposite for the non- preferred type of customer organizations

Preferred for negotiation Type

Tukey Ba,b

Management Style N

Subset for alpha

= 0.05

1

Participative - Everyone has

input 68 4.09

Affiliative - People first, task

second 37 4.16

Authoritative - Firm but fair 49 4.18

Directive - Do the way I tell

you 4 4.50

Non - preferred for negotiation Type

Tukey Ba,b

Management Style N

Subset for alpha

= 0.05

1

Directive - Do the way I tell

you 4 2.00

Affiliative - People first,

task second 37 2.19

Participative - Everyone has

input 68 2.24

Authoritative - Firm but fair 49 2.31

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Table-1.5: Post Hoc Analysis

Alternate Solutions – Management Style

Preferred for alternate solutions

Tukey Ba,b

Management Style N

Subset for alpha

= 0.05

1

Participative - Everyone

has input 68 4.06

Authoritative - Firm but

fair 49 4.31

Affiliative - People first,

task second 37 4.49

Directive - Do the way I

tell you 4 4.50

Inference:

For suggesting alternative solutions to the enterprises, the sales personnel prefer a directive

style of management compared to the participative type of management which is

represented by the highest number of respondents of salespersons.

In case of the non- preferred type of customer organizations, sales personnel have greater

affinity for participative style of Management

Non - Preferred for alternate solutions

Tukey Ba,b

Management Style N

Subset for alpha =

0.05

1

Affiliative - People first,

task second 37 2.16

Directive - Do the way I

tell you 4 2.25

Authoritative - Firm but

fair 49 2.39

Participative - Everyone

has input 68 2.41

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Table-1.6: Post Hoc Analysis

Interaction of Cross functional teams based on Management Style

Inferences:

An affiliative style of Management is preferred for the involvement of cross functional

teams in the enterprise solutions offered.

Among Non-preferred type of customers, a directive type of management style is

preferred.

Conclusions

Salespersons do differentiate the Enterprises they interact with based on the style of management

in the enterprise. They do categorize the prospective customers to be preferred or non-preferred.

This has an influence in each of the steps of the selling process with the enterprise in question.

This influence is seen to have the variation in the intensity of their preference with each segment

Preferred for Cross functional teams

Tukey Ba,b

Management Style N

Subset for

alpha = 0.05

1

Participative - Everyone

has input 68 4.01

Directive - Do the way I

tell you 4 4.25

Authoritative - Firm but

fair 49 4.39

Affiliative - People first,

task second 37 4.41

Non - Preferred for Cross functional teams

Tukey Ba,b

Management Style N

Subset for

alpha = 0.05

1

Affiliative - People first,

task second 37 2.16

Authoritative - Firm but

fair 49 2.29

Participative - Everyone

has input 68 2.41

Directive - Do the way I

tell you 4 2.75

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of the preferred and non-preferred customers. Such differentiation they have in their preference

can cause a predisposition towards the customers in each of the steps of the sales process.

Therefore, the organizations do have to focus on their management style of the enterprise thereby

creating the right impression to the salespersons and thus enable themselves to be the beneficiaries

of the market conditions.

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