Download - motivation and compensation in sales
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Submitted To,
Prof. Manesh Handoo
Group Members:-
Rohen Goregaonkar
Aatish Kamble
Nilesh Ghanwat
Pawan Lad
Kamlesh Dubey
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MOTIVATION
Its an internal feeling and an energy within sales
person that drives them to behave in a certain way.
It can be both the form positive or negative motivation
Its effect on individuals are similar in nature by
different force.
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WHY MOTIVATION?
Self motivated 10% to
15%
Majority if sales people arenot adequately motivated
Companies financial
performance is depend on thesales persons achievement
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COMPENSATION
Monetary values inexchange of workperformance
systematic approach toprovide value to employeesin the exchange for workperformance
Integral part of human
resources managementwhich helps in motivatingemployee & organizationaleffectiveness
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MOTIVATIONAL THEORY
MASLOW THEORY
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HERZBERG TWO FACTOR THOERY
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ERG THEORY
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HOW TO FORM SALES COMPENSATION
PLAN
Examining the job description
Set up specific objective for sales people
Decide levels of pay/ compensation
Develop the compensation mix
Decide indirect payment plan
Pretest, administer, & evaluate the plan
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MAJOR COMPONENTS OF COMPENSATION
SYSTEMS
Basic wage and salary plan
Incentives
Employee benefits
Performance-based pay
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TYPES OF COMPENSATION
DIRECT (FINANNCIAL)
Wages/Salaries
Commissions, Bonuses, Gain sharing, Profit sharing
Commission/ Incentives
Fringe Benefits (health insurance, education
reimbursement, childcare, cafeteria plans,
employee discounts, personal use of a companyowned vehicle)
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INDIRECT (NON FINANCIAL)
Pay for time not worked ( vacation, sick leaves, holidays etc.)
Insurance coverage (medical, dental, life etc.)
Income security (pensions and disability)Service (education assistance, child care, recreations, discounts
etc.) Personal growth opportunities
Recognition
Job security
Sales training programs
Job enrichment
Supervision
Sense of accomplishment
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COMPENSATING THE SALES FORCE
Objectives of compensation plan from the point of view ofcompany :-
To attract, retain & motivate competent sales people
Motivating employee for higher productivity & performance
To be competitive yet economical
To be flexible for changes product, market, different salespotentials
Provoking healthy internal competition
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Objectives of compensation plan from the point of view
of sales people :-
To have both regular &incentive income
Recognition as a tool of selfesteem
Incentive income for aboveaverage performance
Work life balance
Planning for better qualityof life
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SOME INTERESTING COMPASRISON
The salary of top executive of public sector are
miserable compared to private sector.
SBI of India chief is paid 10% of HDFC Bank Managing
Director
BHELS chief gets about 10 to 12lakhs per annum asagainst ABBS MD is getting 40 to 50 lakhs
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Employee Stock Ownership Plan
(ESOP)
Provides a company's workforce with an ownership
interest in the company.
Employees with stock ownership, often at no up-front
cost to the employees
Shares are allocated to employees and may be held inan ESOP trust until the employee retires or leaves the
company
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ADVANTAGES & DISADVANTAGES OF ESOP
Ownership
Tax rebate
Retirement benefits
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TCS Employee Satisfaction(2003-04)
Parameter Industry average/ TCS
TCS Company Image 9.3/ 9.6
Job Content Growth 9.1 /9.9
Training 8.7 /10.0
Salary & Compensation 8.2/ 8.8
Appraisal System 8.8 /9.7
People In company 9.1/ 9.5
Overall Satisfaction 9.2/ 9.8
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