Motivating the Sales Motivating the Sales PersonnelPersonnel

Objectives

Define motivation;

Understand the complexity of motivation;

Explain the main theories of motivation;

Understand the impact of cultural differences on motivation;

Explain various tools available for motivating the global sales force; and

Discuss the relationship between motivation and job satisfaction.

What is motivation?

Motivation is the inner force that guides behaviour and is concerned with the causation of specific actions.

Motivation is a three-dimensional construct consisting of the following:

Intensity or the magnitude of mental activity and physicaleffort expended towards a certain action;

Persistence or the extension of the mental activity and physical effort over time; and

Direction or the choice of specific actions in specificcircumstances.

Understanding motivation

Motivation should be understood at two levels:

What motivates salespeople How salespeople choose their action (the reasons behind the intensity (the direction or decision to engage in and persistence of mental and specific actions in specific physical effort expended) circumstances)

Motivational theories addressing the issue:“what” motivates salespeople

Need Hierarchy Theory

Physiological needs

Security needs

Belongingness needs

Esteem needs

Physiological needs (e.g., basic salary); security needs (e.g., pension plan); belongingness needs (e.g., friends in work group); esteem needs (e.g., job title); self actualisation needs (e.g., challenging job).

Self-actualisationneeds

Two Factor Theory

Motivation factors (e.g., achievement, recognition, responsibility)Hygiene factors (e.g., supervision, pay, job security, working

conditions)

The theory argues that:

The motivation factors or motivators are the primary causes of motivation and address the question “why work harder”;

The hygiene factors are necessary conditions to achieve a state of neutrality and address the question “why work here”.

Motivational theories addressing the issue: “what motivates salespeople”

ERG Theory

Existence (E) Relatedness (R) and Growth (G) needs are structured in a hierarchical order. The theory postulates that:

a) The lower the level of satisfaction in a need the more it will be desired;

b) The higher the satisfaction in a lower level need, the greater the desire to satisfy a higher level need; and

c) The lower the satisfaction in a higher level need the greater the desire for satisfying lower level needs.

Motivational theories addressing the issue: “what motivates salespeople”

Motivational theories addressing the issue: “how do salespeople choose their actions?”

Equity Theory

Equity (inequity) is defined as the belief that one is treated fairly (unfairly) in relation to others.

A salesperson’s choice of effort to be expended is a result of a comparison between his output-input ratio and the output-input ratios of others.

Output of A (e.g., pay, recognition) Output of B (e.g., pay, recognition)Input of A (e.g., effort, loyalty) Input of A (e.g., effort, loyalty)

A salesperson who perceives to be inequitably treated can change his input, output, alter the perceptions of self and/or others, change comparisons or leave the situation.

Motivational theories addressing the issue:“how do salespeople choose their actions?”

Expectancy Theory

Motivation is a function of a salesperson’s anticipation that a particularbehaviour will lead to outcomes that s/he values.

Motivation = function of (Expectancy x Instrumentality x Valence)

Expectancy is the salesperson’s perception that a certain amount of effort will lead to successful performance (e.g., Can I do it?)

Instrumentality refers to salesperson’s perception of the probability thatperformance will lead to certain outcomes or rewards (e.g., What do I get for doing it?)

Valence is the perceived attractiveness or unattractiveness of anoutcome or reward (e.g., How much do I value the reward?)

Motivational theories addressing the issue: “how do salespeople choose their actions?”

Attribution Theory

Attribution theory is concerned with the “why” question.

Since different behaviours can be attributed to different factorssalespeople try to attribute success or failure as the outcome of theirbehaviour to some causes by posing the question “why did this happen?”

Taxonomy of causes:

Locus of control dimension (causes that are within [internal] or outside [external] the individual);

Stability dimension (causes that are stable or unstable)Control dimension (causes that are controllable or uncontrollable)

Motivational theories addressing the issue:“how do salespeople choose their actions?”

Goal Setting Theory

Motivated behaviour is the result of conscious goals and intentions.

The theory starts from the point that a salesperson has determined toengage in an activity and argues that a person’s inclination to act ina particular way is influenced by the:

• Anticipated result (goal);• Intention (will), which implies:• Effort (will-act); and• Strategy to reach the goal (object oriented content).

Goal difficulty and goal specificity are two important aspects thatshape performance.

Motivational theories offering alternative explanations

Reinforcement Theory

The theory suggests that behaviour is a function of its consequences and explains how the consequences of past action influence future action in a cyclical manner.

For example, if a particular behaviour leads to a rewarding consequence the same behaviour is likely to be repeated.

Stimulus Response Consequence

The stimulus triggers a response (behaviour) and the consequencesof that response (behaviour) determine whether the same response(behaviour) will or will not be repeated.

Motivating the Global Sales Force

Salespeople are motivated by different needs.

Need for status (e.g., need for recognition and promotion)

Need for control (e.g., need to be in control and influence others)

Need for respect (e.g., need to be seen as experts who can give advice)

Need for routine (e.g., need to follow a routine that must not be interrupted)

Need for accomplishment (e.g., need more money and challenges)

Need for stimulation (e.g., need to seek outside stimulation and challenges)

Need for honesty (e.g.,need to believe in the rightness of their practices)

(Smyth and Murphy, 1969)

Motivating the Global Sales Force

Motivational tools

Motivational tools should satisfy at least two criteria.

a) Should generate extra effort that will help the company to achieveits objectives , and

b) Must increase job satisfaction among salespeople.

Motivational tools include, but are not limited to:

Sales meetings;

Incentive programs (e.g., sales contests and competitions)

Recognition programs (e.g., praise, promotion, extra responsibilities)

Motivating the Global Sales Force

Motivation, job satisfaction, and performance

Job satisfaction refers to all characteristics of the job itself and the work environment which salespeople find rewarding, fulfilling, andsatisfying.

Job satisfaction can be felt by anticipating a desired outcome, or by accomplishing a certain level of performance and/or receiving a reward.

Job satisfaction, motivation and performance are closely related. It is important to remember that global salespeople may be satisfied by different outcomes and rewards.

CONCLUSION:

Motivation is an inner force that drives and directs behaviour.

Motivation theories answer questions pertaining to what motivates salespeople and how salespeople choose their actions.

The three groupings of motivational theories are: Content, Process and Reinforcement.

Culture influences motivation through its influence on salespeople’s values, attitudes and norms.

Sales managers have a range of motivational tools at their disposal. Cultural differences among salespeople should be taken into consideration when designing a motivational program.

Motivation, job satisfaction and performance are inextricablyrelated.

THANK YOU !