6 Salesperson Performance: Behavior, Role Perceptions,

and Satisfaction

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Changing Role of Sellers

Source: HR Chally Group (2007), The Chally World Class Excellence Research Report:The Route to the Summit. Dayton, OH: HR Chally Group.

Sales revenue may oversimplify sales effectiveness

Are sellers as important as product?

Sellers slightly more important, but salesperson + company create synergy

Should companies invest in sales or product?

Many are investing in product while using alternative selling channels

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Understand salesperson performance model

Identify components of the model Discuss role perception process Understand why the role of

salesperson is susceptible to role issues

Discuss how role conflict, role ambiguity, and role accuracy influence a salesperson’s role perceptions

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6.1

Model of the determinants of a salesperson’s performance

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The Model

Job performance a function of five basic factors Role perceptions Aptitude (Qualification) Skill level Motivation Personal, organizational and

environmental variables

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Role Perceptions

Role accuracy - degree to which a salesperson’s perceptions of role partners’ demands are accurate

Role conflict - salesperson believes role demands of two or more role partners are incompatible

Role ambiguity – salesperson believes he/she does not have information necessary to perform job adequately

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Aptitude

Enduring personal characteristics that determine individual’s overall ability to perform a sales job Physical factors – age, height, sex,

and physical attractiveness Aptitude factors – verbal

intelligence, mathematical ability and sales expertise

Personality characteristics – empathy, ego, sociability, aggressiveness, and dominance

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Aptitude

Aptitude

Intelligence

Cognitive abilities Verbal intelligence

Math ability

Sales aptitude

Enduring personal characteristics that determine individual’s overall ability to perform a sales job

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Personality

Enduring personal traits that reflect an individual’s consistent reactions to situations encountered in the environment

Responsibility

Personality

Dominance

Sociability

Self-esteemCreative/flexibility

Need for achievement

Need for power

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Skill

Learned proficiency at performing necessary tasks

SkillVocational esteem

Vocational skills Sales presentation

Interpersonal

General manageme

nt

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Motivation

Effort willingly expended on activities associated with the job

Function of: Expectancy – estimate of effort

required to improve performance Valences of performance –

perception of the desirability of attaining performance improvement

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6.1 Different Salespeople/Different Drivers Deeper meaning Joy Goals Team success Leadership Rewards

Source: Gschwandter Gerhard, “Do You Have Enough Fuel to Win?” SellingPower.com, September, 2007.

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Personal and Organizational Variables

Job experience Closeness of supervision Performance feedback Influence in determining

standards Span of control Amount of role conflict Perceived ambiguity

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Organizational Citizenship Behaviors (OCBs)

Sportsmanship Civic Virtue Conscientiousness Altruism

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6.2 Critical Global Sales Skills

Cultural sensitivity Flexibility Patience Technology friendly

Source: Frank Beeman, “Selling Around the World,” SellingPower.com, October, 2007.

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Rewards

Extrinsic –controlled by people other than the salesperson

Intrinsic – salespeople primarily attain for/within themselves

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Satisfaction Dimensions

The job itself Fellow workers Supervision Company policies and

support Pay Promotion/advancement

opportunities Customers

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6.3Components of jobsatisfaction

Role Perceptions

AmbiguityConflict

Inaccurate role perceptions

Psychological stress

AnxietyLowered

performance

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Role Development Stages

Role partners communicate expectations

Salespeople develop

perceptions

Salespeople convert

perceptions into

behaviors

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6.4Sales perceptions ofthe job

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Vulnerability of Salesperson’s Role

Operate at firm’s boundary Performance affects many

others Role changes often, is

innovative

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6.3 Ethical Salespeople/Unethical

Customers Salespeople must…

Know they are expected to adhere to corporate ethical standards

Know they will be supported by management

Have the tools to make good ethical decisions

Clearly understand ethics policies Have a process for handling ethical

issues

Role Conflict and Ambiguity

Role Perceptio

ns

Role Conflict

Role Ambiguity

InaccurateRole

Perceptions

Consequences

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Conflict and Ambiguity Different role partners mean

different expectations Perceived role expectations are

consistent among salespeople Role ambiguity plagues many

salespeople in some aspect of their job

Salespeople often perceive conflict between company policies or expectations and customer demands

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Psychological Consequences of Conflict and Ambiguity

Salesperson becomes the “person in the middle” w/ conflicting expectations

Perceived lack of necessary information causes loss of confidence

Perceived role conflict affects extrinsic job satisfaction

Role ambiguity affects extrinsic and intrinsic job satisfaction

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Behavioral Consequences of Conflict and Ambiguity

Dysfunctional behavior Increased turnover Satisfaction and

performance correlate positively

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6.4 Balancing Work and Family

66% not enough time for children 64% not enough time from spouse 38% heavy technology users feel

overworked 51% heavy technology users have

high stress 40% angry w/ employer 49% looking for other

employment 28% not enough energy for family

activitiesSource: Ellen Galinsky, James T. Bond, Stacy S. Kim, Lois Backon, Erin Brownfield, and Kelly Sakai, “Overwork in America: When the Way We Work Becomes Too Much,” Families and Work Institute, 2004. Ellen Galinsky, Stacy S. Kim, and James T. Bond, “Feeling Overworked: When Work Becomes Too Much,” Families and Work Institute, 2001; “National Study of the Changing Workforce” (Executive Summary), Families and Work Institute, 1997; p. 34.

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6.5Causes and consequences of a salesperson’s job perceptions

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Managing Conflict and Ambiguity

Experience reduces role conflict Increased voice in role

definition reduces role conflict Close supervision reduces

ambiguity Input in evaluation standards

reduces ambiguity Close supervision can increase

conflict

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Role Accuracy

Correct understanding of job performance expectations Price negotiations Promise of shorter delivery

times Handling customer back

charges and adjustments

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Common Activities for Industrial Salespeople

Selling Working with orders Servicing the product Information management Servicing the account

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Common Activities for Industrial Salespeople

Conferences/meetings Training/recruiting Entertaining Out of town traveling Working with distributors

Source: Developed from variables by William C. Moncrief, “Selling Activity and Sales Position Taxonomies for Industrial Salesforces,” Journal of Marketing Research, 23 (August 1986), pp. 261-270 and William C. Moncrief, “Ten Key Activities of Industrial Salespeople,” Industrial Marketing Management, 15 (November 1986), pp. 309-317.

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Common Performance Criteria for Industrial Salespeople

Total sales volume, increase over last year

Degree of quota attainment Selling expenses, decrease versus last

year Sales profitability, increase over last

year New accounts Administrative performance

improvement Customer service improvement

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Common Rewards for Industrial Salespeople

Pay Promotion Nonfinancial incentives (contests,

travel, prices, etc.) Special recognitions (clubs, awards,

etc.) Job security Feeling of self-fulfillment Feeling of worthwhile accomplishment Opportunity for personal growth and

development Opportunity for independent thought

and action