SALES FORCE MOTIVATION

Sales Force Motivation

Learning 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.

Chapter 10: Motivating the Sales Force

What is motivation?
Motivation is the inner force that guides behavior 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 physical
effort 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 specific
circumstances.

Chapter 10: Motivating the Sales Force

Understanding motivation

Motivation should be understood at two levels:

What motivates salespeople

(the reasons behind the intensity
and persistence of mental and
physical effort expended)

How salespeople choose their action

(the direction or decision to engage in
specific actions in specific
circumstances)

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

what motivates salespeople
Need Hierarchy Theory

Self-actualisation
needs

Esteem needs
Belongingness needs
Security needs
Physiological 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).
Source: Maslow, 1943)

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

what motivates salespeople
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.

Chapter 10: Motivating the Sales Force

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.

Chapter 10: Motivating the Sales Force

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 salespersons 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)
Input of A (e.g., effort, loyalty)

Output of B (e.g., pay, recognition)

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.

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

how do salespeople choose their actions?
Expectancy Theory
Motivation is a function of a salespersons anticipation that a particular
behaviour will lead to outcomes that s/he values.
Motivation = function of (Expectancy x Instrumentality x Valence)
Expectancy is the salespersons perception that a certain amount of
effort will lead to successful performance (e.g., Can I do it?)
Instrumentality refers to salespersons perception of the probability that
performance will lead to certain outcomes or rewards
(e.g., What do I get for doing it?)
Valence is the perceived attractiveness or unattractiveness of an
outcome or reward (e.g., How much do I value the reward?)

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

how do salespeople choose their actions?
Attribution Theory
Attribution theory is concerned with the why question.
Since different behaviors can be attributed to different factors
salespeople try to attribute success or failure as the outcome of their
behavior 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)

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

how do salespeople choose their actions?
Goal Setting Theory
Motivated behavior is the result of conscious goals and intentions.
The theory starts from the point that a salesperson has determined to
engage in an activity and argues that a persons inclination to act in
a 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 that
shape performance.

Chapter 10: Motivating the Sales Force

Motivational theories offering alternative explanations

Reinforcement Theory
The theory suggests that behavior 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 behavior leads to a rewarding
consequence the same behavior is likely to be repeated.
Stimulus

Response

Consequence

The stimulus triggers a response (behavior) and the consequences

of that response (behavior) determine whether the same response
(behavior) will or will not be repeated.

Chapter 10: Motivating the Sales Force

Motivating the Global Sales Force

Cultural differences and motivation
Cultures differ on at least six bipolar dimensions:
Universalism
Individualism
Specificity

(e.g., rules, laws)

(e.g., competitiveness)

(e.g., atomistic)

Achieved status
Inner direction
Sequential time

(e.g., what you have done)

(e.g., conscience is located inside)

(e.g., time is a race)

Particularism (e.g., exceptions, unique relations)

Communitarianism
Diffusion

(e.g., cooperation)

(e.g., holistic)

Ascribed status
Outer directed

(e.g., who you are)

(e.g., examples are located outside)

Synchronous time

(e.g., time is a dance)

(Hampden-Turner and Trompenaars, 2000)

Using examples, explain how differences in values as above might

complicate the task of motivating a global sales force.

Chapter 10: Motivating the Sales Force

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)

Chapter 10: Motivating the Sales Force

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 achieve
its 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)

Chapter 10: Motivating the Sales Force

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, and
satisfying.
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.

Chapter 10: Motivating the Sales Force

Summary
Motivation is an inner force that drives and directs behavior.
Motivation theories answer questions pertaining to what motivates
salespeople and how salespeople choose their actions.
The three groupings of motivational theories discussed in this chapter
are: Content, Process and Reinforcement.
Culture influences motivation through its influence on salespeoples
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 inextricably
related.