Hello, the topic of our lecture is motivation and performance evaluation. There are many reasons why people go on sale and even if you picked up a good sales staff, this doesn't mean that they will work well, for this, they need to be motivated. Let's consider some theories of motivation and their applicability in sales. According to Maslow's theory of motivation, human behavior is determined by satisfaction of needs, needs of higher level are not a motivator until the needs of a low level are sufficiently satisfied. Satisfied needs seizes to be a motivator. In sales, a seller who has a high level of wage, cannot be motivated by additional payments. The delusion also that the main motivator of the seller is money, effective motivational results from an accurate assessment of the needs of the individual salesperson under the manager supervision. The override in need for one salesperson may be reassurance and the building of confidence. These may act to motivate them for another, with a great need for esteem, the sales manager may motivate by highlighting outstanding performance at a sales meeting. You also need to remember that the level of satisfaction of the needs of each person is different. Herzberg's dual factor theory, differs factors which can use dissatisfaction but cannot motivate, hygiene factors and factors which can cause positive motivation. Hygiene factors include physical working conditions, security, salary, and interpersonal relationships. Directing managerial attention to these factors would bring motivation up to theoretical zero, but would not result in positive motivation. If this were to be achieved, attention will have to be given to true motivators, this include the nature of the work itself, which allows that person to make some concrete achievements, recognition of achievements, responsibility exercised by the person, and the need to interests of the work itself. The inclusion of salary as a hygiene factor rather than as motivator was criticized by some sales managers. Their experience led them to believe that commission practices, salespeople, was a powerful motivating and practice. Herzberg accommodated their view to some extent, but arguing that increased salary through higher commission was a motivator for the automatic recognition, it gave to sales achievement. The truth probably lies in the middle. The constant part of their salary is a hygienic factor and the commission is a motivator. The work by Herzberg highlights the importance of recognition as positive factor and Maslow suggests that many people have a need to be accepted, thus what salesman will say to the salespeople, can have both motivational and demotivational effects, by given or taking away recognition and acceptance. Giving recognition and acceptance, like a pat on the back or praise for example, is called positive strokes and can act as a motivator. Withdrawn recognition and acceptance like criticizing or ignoring the person, is called negative strokes and can act as both motivator or a demotivator depending on situation. The Vroom's Expectancy theory is based on three categories; expectancy, instrumentality, and valence. Expectancy, this refers to a person specific relationship between effort and performance, that is to extend to which a person belief that increased effort will lead to a higher performance. Instrumentality, this reflects the person's perception of the relationship between performance and rewards. For example, it reflects the extent to which a person believes that high performance will lead to promotion. Valence, this represents the value placed upon a particular reward by a person. For someone who deals promotion may be highly valued, for others it may have little value. There's according to the theory, if salesperson believes that by working harder they will achieve increased sales, which is high expectancy that higher sales will lead to greater commission, which is higher instrumentality and that higher commission is very important, which is high valence, then it will result in a high level of motivation. However, the question on Vroom that very significance. For example, the seller thinks, if I spend this weekend with my clients on efficient trip, then I will definitely make a deal with him for 10 million labels, my commission will be one percent of the amount, however, I will not be able to spend the weekend with my son that I love very much, but they will buy him a new iPhone for nine 2,000 troubles, which he wants. The seller will earn 100,000 troubles, which is more than the price of the device, but is it worth losing a weekend with his son against 10,000 troubles of initial income and iPhone. Everyone in this case decide for himself what is more valuable to him, money, time spent with his son, or that his son will have a new iPhone. An important aspect of salesperson motivation is communication and metrics with a sales manager or commercial director. If you watch the movie, Glengarry Glen Ross, you will understand that the real estate agents, they had a lot of problems with the motivation of salespeople, as well as because of their management style of two sales managers, the head of the office played by Kevin Spacey and the experience seller played by Alec Baldwin. The skills required from a sales manager are wider than those required of a salesperson. A Sales manager must be able to analyze and control the performance of others, motivate and train them, their skills and knowledge required to sell successfully. Research conducted by Likert it suggest, that to produce a highly motivated salesforce, the sales manager should have high performance goals, he should encourage analysis and discussion salespeople's performance, and problems through the group, meetings, or conducting sales meetings. It is likely that a problem faced by one salesperson has been met previously by another who may have found a way of overcoming it. For example, a troublesome objection to one salesperson, may have been successfully dealt with by another. The more open style of meetings enables the sales managers to gain a greater understanding of the needs and problems of salesforce. The group method promotes a feeling of group loyalty, since it fosters a spirit of cooperation. Although this was not completely typical for the group meetings in Glengarry Glen Ross and the meeting salespeople, apart from insults and humiliation, did not cure anything that could inspire them to sell, perhaps they've built sudden bestsellers, perhaps the existing base of potential clients was bad, but there was only one situation of such a meeting, to steal the base of potential clients and sell it to competitors. Distracting a little from the topic of the lecture. We say that the problem of abduction customers to competitors is one of the main issues in working the salespeople. To prevent this from happening, it is necessary to carefully control the work of salespeople and convince the client, considere themselves as not a client of salesperson, but a client of organization. I should say that salespeople and sales managers have different points of view and motivation.The study by Jobber and Lee, showed that extends to reach this perception of sales management and sales people towards motivation can differ. They investigated the perceptions of that motivates and demotivates sales people, by asking a sample of life assurance salespeople and their sales directors. Sales management thought that competitions, contests, or prices motivated salespeople significantly more than their salespeople themselves did. Salespeople on the other hand, willing to employ benefits higher and then sales managers perception on motivating issues were also quite different. Sales management believed that supervision, relations, and personal problems demotivated salespeople the most, while their salespeople believe that lack of advancement, lack of security, and long hours of work were the major source of demotivation. In sales management, an important issue is in personality or equity. Now salesperson sees that the sales manager has favorites who get the best leads, then these medium intuit him to work in the organization in general. Besides for a salesperson, inequity can be felt in such heuristics as one of the rewards, workload, promotion degree of recognition, supervisory behavior, targets, and tasks. Let us say once again, a few words about money and conclusion or the motivation. Commission may work in motivating salespeople through providing and direct reward for extra foot according to Vroom's theory, or otherwise by giving recognition for achievement, according to Herzberg theory. In a study by Lupus, Hopkins, and Ramon's, high commission rates were the most preferred reward among US salespeople, within such alternative as pay rises, promotion and recognition, the salespeople were also asked to describe their ideal compensation structure where half of them stated that they prefer compensation structures that relied more heavily on commission rather than basic pay. Obviously, salespeople highly value the opportunity to increase wages based on their sales achievements.
