Module Handouts

8/6/2019 Module Handouts

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Evaluating the PerformanceEvaluating the Performance

of Salespeopleof Salespeople

Module TenModule Ten


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Purposes of SalespersonPurposes of Salesperson

Performance EvaluationsPerformance Evaluations

Ensure that compensation is consistent with actualEnsure that compensation is consistent with actualsalesperson performancesalesperson performance

Identify salespeople that might be promotedIdentify salespeople that might be promoted

Identify salespeople who should be terminated and to supplyIdentify salespeople who should be terminated and to supply

documentationdocumentation

Determine training and counseling needsDetermine training and counseling needs

Human resource planningHuman resource planning

Identify criteria for recruitingIdentify criteria for recruiting

and selecting salespeopleand selecting salespeople


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Purposes of SalespersonPurposes of Salesperson

Performance EvaluationsPerformance Evaluations

Advise salespeople of work expectationsAdvise salespeople of work expectations Motivate salespeopleMotivate salespeople

Help salespeople set career goalsHelp salespeople set career goals

Relate salesperson performance to salesRelate salesperson performance to salesorganization goalsorganization goals

Enhance communications betweenEnhance communications between

salesperson and sales managersalesperson and sales manager

Improve salesperson performanceImprove salesperson performance


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Salesperson PerformanceSalesperson Performance

Evaluation ApproachesEvaluation Approaches

General conclusions (continued):

Multiple sources of informationMultiple sources of information

Conducted by the field sales manager whoConducted by the field sales manager who

supervises the salespersonsupervises the salesperson Provide a written copy of the review andProvide a written copy of the review and

conduct a personal discussionconduct a personal discussion


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SalespersonSalesperson

360-Degree Feedback System360-Degree Feedback System

Evaluated by multipleEvaluated by multiple

ratersraters

Salespersons value toSalespersons value to

the organization andthe organization and

customerscustomers ConsiderationsConsiderations

Quality dataQuality data

ConfidentialityConfidentiality UsefulUseful

Not used exclusivelyNot used exclusivelyInte

rnal

Inte

rnal

C

usto

mers

C

usto

mers

Evaluation

Evaluation

Evaluation

Ev

aluationExternal

External

Custom

ers

Custom

ers

Eva

luatio

n

Eva

luatio

n

Eva

luatio

n

Eva

luati

on

Oneself

Oneself

Evaluation

Evaluation

Evaluation

Evaluation

SalesSalesManagerManager

Ev

alu

ation

Ev

alu

ation

Ev

alu

a

tion

Ev

alu

a

tion

Team

Team

Mem

bers

Mem

bers

Evalu

ation

Evalu

ation

Evalu

ation

Evalu

ation


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Perspectives on SalespersonPerspectives on Salesperson

Performance EvaluationPerformance Evaluation

Outcome-BasedOutcome-Based

Little monitoring ofLittle monitoring of

peoplepeople

Little managerialLittle managerialdirection ofdirection of

salespeoplesalespeople

StraightforwardStraightforward

objectives measuresobjectives measuresof resultsof results

Behavior-BasedBehavior-Based ConsiderableConsiderable

monitoring ofmonitoring ofsalespeoplesalespeople

High levels ofHigh levels ofmanagerial directionmanagerial directionof salespeopleof salespeople

Subjective measuresSubjective measuresof salespersonof salespersoncharacteristics,characteristics,activities, andactivities, andstrategiesstrategies


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Dimensions of SalespersonDimensions of Salesperson

Performance EvaluationPerformance Evaluation

BehavioralBehavioralBehavioralBehavioral

ProfessionalProfessional

DevelopmentDevelopment

ProfessionalProfessional

DevelopmentDevelopment

ResultsResultsResultsResults

ProfitabilityProfitabilityProfitabilityProfitability


PerformancePerformance


PerformancePerformance


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Criteria for Performance EvaluationCriteria for Performance Evaluation

Behavior:Behavior: Activities performedActivities performed

Activities to promote long-term customerActivities to promote long-term customer

satisfactionsatisfaction

Sales callsSales calls

Customer complaintsCustomer complaints

Required reports submittedRequired reports submitted

Training meetingsTraining meetings

Letters and calls to prospectsLetters and calls to prospects


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Professional Development:Professional Development:

Assess improvements in certainAssess improvements in certain

characteristics: traits, skills, knowledgecharacteristics: traits, skills, knowledge

AttitudeAttitude

Product knowledgeProduct knowledge

Initiative and assertivenessInitiative and assertiveness

Communication skillsCommunication skills

Ethical behaviorEthical behavior


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Results:Results:

Measured objectively: sales, market shareMeasured objectively: sales, market share

Possible negative effectsPossible negative effects

Sales quotasSales quotas


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Elements Important inElements Important in

Assigning Sales QuotasAssigning Sales Quotas

Concentration of businessesConcentration of businesses

Geographic size of the territoryGeographic size of the territory

Growth of businesses within the territoryGrowth of businesses within the territory

Commitment by the sales manager to assistCommitment by the sales manager to assist Complexity of products soldComplexity of products sold

Past sales performancePast sales performance

Extent of product lineExtent of product line

Financial supportFinancial support

Amount of clerical supportAmount of clerical support


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Profitability:Profitability: Specific products soldSpecific products sold

Prices negotiatedPrices negotiated

Expenses incurredExpenses incurred

CriteriaCriteria


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Performance Evaluation Methods:Performance Evaluation Methods:Characteristics any method should includeCharacteristics any method should include

Job RelatednessJob Relatedness

ReliabilityReliability

ValidityValidity

StandardizationStandardization

PracticalityPracticality

ComparabilityComparability

DiscriminabilityDiscriminability

UsefulnessUsefulness


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Performance Evaluation MethodsPerformance Evaluation Methods

Graphic Rating/Checklist MethodsGraphic Rating/Checklist Methods

Performance evaluation formPerformance evaluation form

Especially useful in evaluating behavioral andEspecially useful in evaluating behavioral and

professional development criteriaprofessional development criteria

Good on most characteristics, especially jobGood on most characteristics, especially jobrelatedness, standardization, practicality, andrelatedness, standardization, practicality, and

comparabilitycomparability

Disadvantage is providing evaluations thatDisadvantage is providing evaluations thatdiscriminate sufficientlydiscriminate sufficiently


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Performance Evaluation Methods:Performance Evaluation Methods:Ranking MethodsRanking Methods

Rank all salespeople according to relativeRank all salespeople according to relative

performance on each performance criterionperformance on each performance criterion

These methods force discrimination as to theThese methods force discrimination as to the

performance of individual salespeopleperformance of individual salespeople May be complexMay be complex

Rankings only reveal relative performanceRankings only reveal relative performance

evaluationevaluation


17/23

Performance Evaluation Methods:Performance Evaluation Methods:Objective-Setting MethodsObjective-Setting Methods

Management By Objectives (MBO)Management By Objectives (MBO)

Mutual setting of well-defined and measurableMutual setting of well-defined and measurable

goals within a specified time period.goals within a specified time period.

Managing activities within the specified timeManaging activities within the specified timeperiod toward the accomplishment of the statedperiod toward the accomplishment of the stated

objectives.objectives.

Appraisal of performance against objectives.Appraisal of performance against objectives.


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Performance Evaluation MethodsPerformance Evaluation MethodsBehaviorally Anchored Rating Scales (BARS)Behaviorally Anchored Rating Scales (BARS)

Links behaviors to specific resultsLinks behaviors to specific results

Salespeople are used to develop performanceSalespeople are used to develop performance

results and critical behaviorsresults and critical behaviors

Positive feedback about behaviors may bePositive feedback about behaviors may bemore effective than positive output feedbackmore effective than positive output feedback


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BARS Scale:BARS Scale: Cooperative Relations with Other Sales TeamCooperative Relations with Other Sales TeamMembersMembers BehavioralBehavioral

Anchor StatementsAnchor StatementsCould be expectedCould be expected

to cooperate when aid is requested by other team members.to cooperate when aid is requested by other team members.

to go out of her/his way to help the team achieve its goals.to go out of her/his way to help the team achieve its goals.

to lend a helping hand and can be expected to try hard to help the team.to lend a helping hand and can be expected to try hard to help the team.

to occasionally support the team on problems encountered in the fieldto occasionally support the team on problems encountered in the field

to contribute half-heartedly to the team effort to accomplish goalsto contribute half-heartedly to the team effort to accomplish goals

not to care much about the team and its membersnot to care much about the team and its members

to antagonize members of the team and pull against the team goalsto antagonize members of the team and pull against the team goals

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Performance Evaluation BiasPerformance Evaluation Bias

Occurs when a managers evaluation of aOccurs when a managers evaluation of a

salesperson is affected by considerationssalesperson is affected by considerationsother than the specified criteriaother than the specified criteria

Common sources of bias:Common sources of bias:

Personal relationshipsPersonal relationships

Perceived difficulty of territoryPerceived difficulty of territory

Impression managementImpression management

Halo effectHalo effect

Outcomes biasOutcomes bias

F k f U i


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Framework for UsingFramework for Using

Performance InformationPerformance Information

Evaluate Salespeople against RelevantEvaluate Salespeople against RelevantPerformance CriteriaPerformance Criteria

Identify ProblemsIdentify Problems

Isolate CausesIsolate Causes

Determine SolutionsDetermine Solutions


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Salesperson Job SatisfactionSalesperson Job Satisfaction

Job satisfaction related to turnover, absenteeism,Job satisfaction related to turnover, absenteeism,

motivation, and organizational commitmentmotivation, and organizational commitment Job satisfaction may be related to performanceJob satisfaction may be related to performance

(direction of relationship is unknown)(direction of relationship is unknown)


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Salesperson Job SatisfactionSalesperson Job Satisfaction

INDSALESINDSALES measures satisfaction with:measures satisfaction with:

JobJob Fellow workersFellow workers

SupervisionSupervision

Company policy and supportCompany policy and support PayPay

Promotion and advancementPromotion and advancement

CustomersCustomers

Results may identify areas where manager mayResults may identify areas where manager mayintervene to improve job satisfactionintervene to improve job satisfaction

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