motivation, compensation, leadership, and evaluation of salespeople
DESCRIPTION
Motivation, Compensation, Leadership, and Evaluation of Salespeople. Chapter. 17. Dudut Urip Prasetyo [email protected]. 17. Chapter. 17- 2. Agenda. Motivation Compensation and Benefit Leader Style & Evaluation. Motivation of the Sales Force. Motivating salespeople at two levels - PowerPoint PPT PresentationTRANSCRIPT
Motivation, Compensation, Leadership, and Evaluation of
Salespeople
Chapter17
Dudut Urip [email protected]
Chapter
Chapter
17
17-2
17-3
Agenda
Motivation Compensation and Benefit Leader Style & Evaluation
17-4
Motivation of the Sales Force
Motivating salespeople at two levelsMotivation of the individual salespersonMotivation of the entire sales force
Motivation is the arousal, intensity, direction, and persistence of effort directed toward job tasks over a period
17-5
The Basic Sales Management Functions
17-6
Directing average people to perform at above-average levelsMotivationalCompensationLeadership
The Basic Sales Management Functions
17-7
The Motivation Mix: Choose Your Ingredients Carefully
The basic compensation plan Special financial incentives Nonfinancial rewards Leadership techniques Management control procedures
17-8
Compensation Is More Than Money
Sales performance can be rewarded in three fundamental waysDirect financial rewardsCareer advancementNonfinancial compensation
Although a sales reward system is not the only means of motivating salespeople, it is the most important
17-9
Exhibit 17-2: Examples of Various Salary Plans
17-10
Compensation Is More Than Money, cont…
Three basic plans of financial compensationStraight salary planStraight commission planCombination plan
17-11
Compensation Is More Than Money, cont…
Straight salary planAdvantages to the salespersonAdvantages to managementDisadvantages to the straight salary planWhen to use the straight salary plan
17-12
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
17-13
Compensation Is More Than Money, cont…
Combination plansSalary and commissionSalary and bonus: individual bonus or group
bonusSalary, commission, and bonus: individual bonus
or group bonus
17-14
Compensation Is More Than Money, cont…
Bonus: individual or groupAcross-the-board bonusPerformance bonusSales contests
17-15
The Total Compensation Package
People choose a sales career for both nonfinancial and financial reasons
The salesperson receives numerous forms of nonfinancial compensation
17-16
Exhibit 17-4: Salary and Fringe Benefits
for a New Representative
17-17
Exhibit 17-4: Salary and Fringe Benefits
for a New Representative
17-18
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
17-19
Leadership Is Important to Success
Leadership The leader’s task and relationship
behaviorTask behavior involves the leader in
describing the duties and responsibilities of an individual or group
Relationship behavior is people-oriented
17-20
Exhibit 17.5: Four Basic Leadership Styles a Sales Manager Can Select From to Influence
Salespeople
17-21
Exhibit 17.6: A Sales Manager Can Choose One of These Leadership Styles Based on the Salesperson and
the Situation
17-22
Sales Management Functions
Planning Staffing Training Directing Evaluating
17-23
The Basic Sales Management Functions
Evaluating the past toguide the futurePerformance criteriaConducting sessions
17-24
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
17-25
Exhibit 17.8: Quantitative and Qualitative Performance
Criteria
17-26
Performance Evaluations Let People Know Where They Stand,
cont… Conducting the evaluation session
Both manager and salesperson should be prepared for the interview
Be positiveActually review performanceFinalize the performance evaluationSummarize the total performance
evaluationDevelop mutually agreed-on objectivesFormalize evaluation and objectives
17-27
The Basic Sales Management Functions, cont…