Download Sales Management: Motivation, Quotas, Recruiting, and Training - Prof. Aaron Arndt and more Study notes Sales Management in PDF only on Docsity! Sales Management Exam 2 Motivation Expectation Theory: Suggests that an employee will expend effort on some task because: 1. The employee expects that the effort will to a performance outcome (expectancy) 2. That will lead in turn to a reward or bonus (instrumentalities) 3. The reward is desirable or valued (valences or desired) Expectancies – salesperson’s perceived link between job effort and performance (probability that increased effort leads to improved performance) Instrumentalities – link job performance and available rewards, estimate likelihood improvement in performance will lead to specific rewards, based on prior experience and expectations Common Rewards – pay, promotion, incentives, recognitions, job security, self-fulfillment, accomplishment, opportunity for growth, independent thought and action Valences – perceptions of desirability of receiving rewards through performance, satisfaction with current rewards depends upon value, preferential treatment may reduce morale, earning opportunity ratios Sales Quotas – goals assigned, apply to specific periods, tool for planning and controlling, benchmark for effectiveness Motivate: provide measures to evaluate salespeople’s performance, provide incentives for sales representatives Quota Types – Sales volume – emphasizes sales, most popular, credible and easily understood Activity – focus on certain sales activities, good for tricky territory Financial – examine financial criteria such as gross margin or contribution to overhead Good Quotas: Attainable, easy to understand, complete, timely Career Stages: Exploration – lack of assurance Establishment – selection of selling as an occupation and desire for career success Maintenance – seeking to retain present position, high status, and achievement Disengagement – preparation for retirement and possible loss of self-identity Attribution theory – people attribute success and failure to: Internal/external causes and stable/unstable events Attribution Error: Good performance = stable/internal Poor performance = unstable/external Competitor’s good performance = unstable/external Competitor’s poor performance = stable/internal Role Theory – balancing between roles is tough Role Ambiguity – salesperson’s role is unclear Behavioral Consequences of conflict and ambiguity: Dysfunctional behavior, increased turnover, satisfaction and performance correlate positively Managing: Experience reduces role conflict, increased voice in role definition reduces role conflict, input evaluation standards reduces ambiguity, close supervision can increase conflict Fairness Theory – employees gauge the reward magnitude relative to their input and then compete this ration with reward to input ratios of similar employees Procedural Fairness – even when individuals receive unfavorable outcomes they evaluate an outcome more positively when they believe that process by which outcomes are determined was fair Interactive Fairness – defined as the interpersonal treatment people receive as procedures are enabled
