Compensation and control sales policies, and sales performance: the field sales manager's points of view

2011 ◽  
Vol 26 (4) ◽  
pp. 273-285 ◽  
Author(s):  
Inés Küster ◽  
Pedro Canales
Keyword(s):  
Individual Performance ◽  
Two Dimensions ◽  
Compensation System ◽  
Working Environment ◽  
Sales Manager ◽  
Sales Managers ◽  
Content Type ◽  
Organization Effectiveness ◽  
Sales Organization ◽  
Points Of View

PurposeThe purpose of this paper is to analyse the relationship among the compensation system (fixed or commission) applied to salespeople, the system by which they are controlled, and the effects of both on individual performance and sales organization effectiveness. Previous research has been extended in a different country/context, and from the field sales manager's points of view.Design/methodology/approachFirst, a cluster analysis was used to obtain a set of groups of salespeople characterized by their main compensation system (salary and/or commission). Also, ANOVA is used to analyze the significance of the differences due to the different compensation system.FindingsThe empirical data reflect the results of research involving 108 field sales managers and show that the compensation system used for the salespeople has significant effects on individual salesperson performance and sales organization effectiveness and is related to the control system used by the company. Companies with a compensation system based on a fixed salary use behavior control more than companies with a compensation system based on commission; salespeople who receive a greater proportion of compensation as a fixed salary give better individual performance than those who are paid by commission; salespeople who receive a greater proportion of their pay as a fixed salary are more effective than those paid largely by commission. Results do not show relevant differences among countries.Research limitations/implicationsAny generalisation of results is limited by the characteristics of this study, in particular by the sample used and the particular situation of the country analysed (Spain). At the same time, and because the study relies on the subjective judgment of sales field managers' perceptions, the measurement of some concepts is subject to various cognitive biases.Practical implicationsCompensation for salespeople is one of the most important issues in saleforce management as it has a significant effect on motivation, which is critical, given the conditions of their working environment.Originality/valueThis paper analyzes the field sales manager's points of view and not that of the salesperson or the sales team. This provides a closer perspective because field sales managers operate between the salesperson and sales manager. This paper presents a framework based on Baldauf et al.'s and Piercy et al.'s previous research, with two main contributions. The first contribution is the proposed direct analysis of the relationships between various antecedents of effectiveness. The second contribution is the consideration of two dimensions of the effectiveness construct: financial efficacy and field sales manager satisfaction.

Inside sales agent’s sales activities influence on work outcomes and sales agent tenure through autonomous motivation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Conde ◽  
Victor Prybutok
Keyword(s):  
Negative Relationship ◽  
Autonomous Motivation ◽  
Sales Performance ◽  
Work Outcomes ◽  
Sales Manager ◽  
Sales Managers ◽  
Content Type ◽  
Sales Process ◽  
Sales Agent ◽  
Operational Data

Purpose Previous sales research remains limited to analyzing the influence of sales activities with sales agent tenure. To date, research on this subject has focused on the downstream direct or indirect impact of sales activities to sales performance, failing to consider whether sales activities impact a sales agent’s tenure. This paper aims to assess the effect of sales activities on sales performance and sales agent engagement on sales agent tenure through the lens of autonomous motivation to better understand sales activities as an overall sales process antecedent Design/methodology/approach Through the utilization of secondary sales operational data, this research demonstrates the influence of sales activities on multiple sales agent outcomes, while depicting the importance of sales managers creating an autonomous motivational climate. Findings This research demonstrates the direct relationship between sales activities to job engagement and sales performance. However, sales activities have a negative relationship to sales agent tenure, which require a sales manager to create an autonomous motivation to mediate the relationship between sales activities and sales agent tenure. Practical implications Organizations are provided with sample methodology and analysis to better determine how a culture grounded in autonomous motivation mediates sales activities and can be a catalyst for improving sales agent tenure. Then, provide a better understanding of the effect of actual sales activities on important sales department work outcomes. Originality/value The model is the first to test holistically the influence of sales activities on sales performance, sales agent engagement and tenure jointly by using actual secondary operational data. This study provides a glimpse of the real world balance a sales manager must consider between climate and activities. Plus, this study takes initial steps to study sales agent engagement, an under-researched construct in sales research.

Examining the use of sales force management practices

2017 ◽  
Vol 32 (7) ◽  
pp. 974-986 ◽  
Author(s):  
David A. Reid ◽  
Richard E. Plank ◽  
Robert M. Peterson ◽  
Gregory A. Rich
Keyword(s):  
Management Practices ◽  
Sales Management ◽  
Sales Force ◽  
Sales Manager ◽  
Future Research ◽  
Sales Managers ◽  
Market Place ◽  
Sampling Frame ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to understand what sales management practices (SMPs) are being used by managers in the current market place, changes over time, insights that can be gained and future research needs. Design/methodology/approach Data for this paper were collected via a cross-sectional internet-based survey using a sampling frame provided by a professional sales publication. ANOVA was used to analyze 159 sales manager respondents. Findings Empirical results indicate that several differences are evident across the 68 SMPs items gathered, especially in terms of the size of the sales force and establish some data on using technology in sales management. However, in spite of significant changes in the sales environment, many SMPs have had limited change. Research limitations/implications The limitations of this paper include a sample frame drawn from a single source and via the internet and, thus, may have excluded some possible respondents from participation and somewhat limit generalizability. Practical implications The results of this paper raise a number of important issues for sales managers to consider. First, which SMPs should they be using? Managers need to give serious thought as to which practices they choose to use. Second, why are so many of them not making more extensive use of sales force technology? Third, is it wise for sales managers to be relying on executive opinion as their most extensively used forecasting method or should they be emphasizing another approach? A fourth issue is the continued heavy emphasis on generating sales volume as opposed to profits. Originality/value The data provide a rare and updated understanding of the use of SMPs by sales managers.

How sales manager experience and historical data trends affect decision making

2015 ◽  
Vol 49 (9/10) ◽  
pp. 1484-1504 ◽  
Author(s):  
Thomas DeCarlo ◽  
Tirthankar Roy ◽  
Michael Barone
Keyword(s):  
Decision Making ◽  
Historical Data ◽  
Decision Makers ◽  
Sales Manager ◽  
Curvilinear Relationship ◽  
Sales Managers ◽  
Content Type ◽  
Benchmark Analysis ◽  
Performance Trends ◽  
Trend Data

Purpose – The purpose of this study is to examine how trends in historical data influence two types of predictive judgments: territory selection and salesperson hiring. Sales managers are confronted frequently with decisions that explicitly or implicitly involve forecasting with limited information. In doing so, they conceptualize how the magnitude of these trend effects may be affected by the experience managers have in making these types of judgments. Study 1 provides evidence of a curvilinear relationship between experience and reliance on the trend data whereby the sales territory selections of novice sales managers exhibited greater susceptibility to informational trends than did the evaluations of naïve and expert decision-makers. A benchmark analysis in Study 2 further revealed that the salesperson selections made by novice and expert sales managers were equally biased, albeit in opposite directions, with novices overweighting and experts underweighting historical performance trends. Implications of these findings are discussed, as are avenues for future research. Design/methodology/approach – The authors employ an online experimental design methodology of practicing managers. For Study 1, they use regression, whereas Study 2 uses a deterministic process to develop a priori predictive benchmark forecasts. Ordinary least squares is then used to estimate manager’s decisions, which are then compared to the predictive forecasts to determine accuracy. Findings – Study 1 provides evidence of a curvilinear relationship between experience and reliance on the trend data whereby the sales territory selections of novice sales managers exhibited greater susceptibility to informational trends than did the evaluations of naïve and expert decision-makers. A benchmark analysis in Study 2 further revealed that the salesperson selections made by novice and expert sales managers were equally biased, albeit in opposite directions, with novices overweighting and experts underweighting historical performance trends. Originality/value – The present inquiry is the first to provide insights into an important issue that has been the subject of equivocal findings, namely, whether experience in a judgmental domain exerts a facilitating or debilitating effect on sales manager decision-making. In this regard, some research supports the intuition that experience in making a particular type of decision can insulate managers from judgmental bias and, in doing so, improve decision quality (see Shanteau, [1992a] for a summary). In contrast, other work provides a more pessimistic view by demonstrating that the quality of decision-making is either unaffected by or can erode with additional experience (Hutchinson et al., 2010). To help reconcile these conflicting findings, the authors presented and tested a theoretical framework conceptualizing how trends may influence predictive judgments across three levels of decision-maker experience.

Getting stellar sales performance: why sales managers’ mentoring, coaching and technology capabilities make the difference

2014 ◽  
Vol 28 (5) ◽  
pp. 13-16
Author(s):  
Komal Khandelwal Das ◽  
Ashwani Kumar Upadhyay ◽  
Subrata Das
Keyword(s):  
Sales Force ◽  
Organizational Sustainability ◽  
Role Clarity ◽  
Sales Managers ◽  
Content Type ◽  
Sales Training ◽  
Sales Organization ◽  
The Difference ◽  
Strategic Relationships ◽  
And Performance

Purpose – The aim of this viewpoint is to distinguish the importance of sales managers’ attitude and role clarity in the context of mentoring, coaching and technology capabilities to achieve stellar sales force operations and performance. Design/methodology/approach – This report reviews the sales training literature to highlight how managerial interventions enhance competencies, behaviours and advanced level of selling orientation by mentoring and coaching construct. The concept of manager’s creativity and imagination is brought out to explain why it should be adapted and carried out in an era of vibrant and dynamic selling paradigm. Findings – Adapting and implementing the concept of mentoring and coaching in a personal or industrial selling context may provide sales organization and academicians a better reason of how leadership and personality traits of manager enhance learning transfer. Practical implications – Sales managers could develop appropriate new metrics based on market orientation for building strategic relationships, thereby eliminates ambiguity in sales-force function. Social implications – Increased sales result in sales force retention, organizational sustainability and economic growth. Originality/value – This paper introduces the concept of mentoring and coaching touch as improvement tactics to transform average salespeople into exceptional performers in contemporary selling to surpass productivity records.

scholarly journals Predicting Sales Manager Control: A Comparison Of Control-System And Leadership Approaches

2011 ◽  
Vol 12 (4) ◽  
pp. 100 ◽  
Author(s):  
Susan K. DelVecchio
Keyword(s):  
Control System ◽  
System Approach ◽  
Sales Manager ◽  
Working Relationship ◽  
Sales Managers ◽  
Perceived Effort ◽  
Sales Organization ◽  
Leadership Approaches

<span>How much latitude should the field sales manager allow his or her subordinates? Two schools of thought have addressed this question. This study tests proposals from these two approaches. The control-system approach contends the field sales managers behavior should be consistent with other sales organization controls. The findings here do not support these contentions but do provide some support the leadership approach. The sales managers in this study varied their control behaviors depending upon the quality of their working relationship with their subordinate or upon the perceived effort levels of the salesperson.</span>

Labour productivity motivation framework for Iskandar Malaysia

2018 ◽  
Vol 8 (3) ◽  
pp. 293-304 ◽  
Author(s):  
Chukwuka Christian Ohueri ◽  
Wallace Imoudu Enegbuma ◽  
Ngie Hing Wong ◽  
Kuok King Kuok ◽  
Russell Kenley
Keyword(s):  
Financial Incentives ◽  
Construction Projects ◽  
Quantitative Research ◽  
Labour Productivity ◽  
Sampling Technique ◽  
Working Environment ◽  
Continuous Training ◽  
Content Type ◽  
Importance Index ◽  
Major Factors

Purpose The purpose of this paper is to develop a motivation framework that will enhance labour productivity for Iskandar Malaysia (IM) construction projects. The vision of IM development corridor is to become Southern Peninsular Malaysia’s most developed region by the year 2025. IM cannot realise this foresight without effective labour productivity. Previous studies have reported that the labour productivity of IM construction projects was six times lower than the labour productivity of Singapore construction projects, due to lack of motivation among IM labourers, and a shortage of local skilled labour. Therefore, there is a need to study how to motivate IM construction labourers, so as to increase their productivity. Design/methodology/approach A quantitative research method was used to collect data from IM construction skilled labourers and construction professionals, using two sets of questionnaire. The respondents were selected using a purposive sampling technique. In total, 40 skilled labourers and 50 construction professionals responded to the questionnaire survey, and the data were analysed using Statistical Package for Social Science software (version 22). Findings The analysis revealed the major factors that motivate labourers participating in IM construction projects. The factors were ranked hierarchically using Relative Importance Index (RII) and the outcome of the ranking indicated that effective management, viable construction practices, financial incentives, continuous training and development, and safe working environment were the most significant motivation strategies that positively influence IM construction labourers. Originality/value The study developed and validated a framework that can be used to boost the morale of IM construction labourers, so that their productivity can be increased. Implementation of the established motivation framework will also lead to career progression of IM construction labourers, based on the training elements in the framework. This career prospect will attract local skilled labourers to participate in IM construction projects.

The factors influencing CoP activities and their impact on relationship commitment and individual performance

2014 ◽  
Vol 18 (1) ◽  
pp. 75-91 ◽  
Author(s):  
Heeyoung Jang ◽  
Ilsang Ko
Keyword(s):  
Organizational Support ◽  
Perceived Risk ◽  
Structural Equation ◽  
Social Norm ◽  
Individual Performance ◽  
Equation Model ◽  
Relationship Commitment ◽  
Content Type ◽  
Online Activities ◽  
And Performance

Purpose – The objective of this study is to identify the factors that affect CoP activation and performance variables obtainable through CoP activities, and to gain greater insight into their relationships and the mechanisms. In particular, this paper intends to illustrate the role of perceived risk factor for the loss of uniqueness of one's own knowledge in terms of their influence on CoP activities. Design/methodology/approach – In this study, the human behaviours were divided into online and offline CoP activities and adopted affirmative affect and social norm from the Triandis model. In addition, the paper considered perceived expectation, perceived risk, and organization support as independent variables. These would accelerate online and offline activities in the community of practice. The paper considered relationship commitment and individual performance in the context of performance evaluations via CoP activities. A structural equation model was developed with research variables and hypotheses. Findings – As the consequence of the empirical assessment of the variables influencing the on/offline activities of a CoP, social norm, perceived expectation, perceived risk, and organizational support showed significantly influential relationships with online activities, and affirmative affect, perceived expectation, and organizational support evidenced significantly influential relationships with offline activities. However, with regard to online CoP activities, affirmative affect was not shown to be significant. As to offline activities, perceived risk was not shown to be significantly influential, while it was determined to significantly influence online activities in a negative direction. Originality/value – The results of this study demonstrated that on/offline CoP activities were significantly influential in terms both of relationship commitment and individual performance.

Ethical consumers' brand avoidance

2014 ◽  
Vol 23 (2) ◽  
pp. 114-120 ◽  
Author(s):  
Anne Rindell ◽  
Tore Strandvik ◽  
Kristoffer Wilén
Keyword(s):  
Design Methodology ◽  
Well Being ◽  
Two Dimensions ◽  
Qualitative Approach ◽  
Specific Group ◽  
Content Type ◽  
Ethical Concerns ◽  
Ethical Consumers ◽  
Consumer Values ◽  
Practical Implications

Purpose – The purpose of this paper is to explore ethical consumers' brand avoidance. The study contributes to brand-avoidance research by exploring what role consumers' ethical concerns play in their brand avoidance. Design/methodology/approach – A qualitative approach is adopted by interviewing 15 active members of organizations that represent ethical concerns for the well-being of animals, the environment and humans. Findings – The study indicates that consumers with a strong value-based perspective on consumption (such as ethical consumers) may reject brands in two different but interrelated ways. In essence, the study reveals characteristics of brand avoidance that have not been discussed in earlier research, in terms of two dimensions: persistency (persistent vs temporary) and explicitness (explicit vs latent). Practical implications – The study shows the importance of considering the phenomenon of brand avoidance, as it may reveal fundamental challenges in the market. These challenges may relate to consumer values that have not been regarded as important or that have been thought of as relating only to a specific group of consumers. Originality/value – The ethical consumers' views represent new insights into understanding brand avoidance.

Elucidating technology-based social entrepreneurs’ scale and scope perspectives: a study of environmental and organizational variables

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Social Entrepreneurship ◽  
Research Study ◽  
New Ventures ◽  
Theoretical Perspective ◽  
Two Dimensions ◽  
Government Support ◽  
Social Entrepreneur ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Social Venture

Purpose The purpose of this paper was to ascertain how social entrepreneurs were required to recognize their new ventures’ scope and scale of operations. The firm boundary was based upon two dimensions, namely, the scope of the offering and its scale. The objective of this research was to ascertain the thinking regarding this of social entrepreneurs engaged through technology-based social entrepreneurship (TBSE). Design/methodology/approach This study conducted an in-depth interview of 26 technology entrepreneurs engaged in social entrepreneurship ventures in India. The interview was carried out based upon a semi-structured open-ended questionnaire. This study undertook thematic and relational content analysis to develop a model of technology-based social entrepreneurs’ venture scoping and scaling. Findings This study found that the antecedent variables were the level of support perceived by social entrepreneur from government and at the industry level. Furthermore, the variables’ entrepreneurial and market orientation of social entrepreneurs were found to be the independent variables. These four variables in turn determined the explorative and exploitative horizon of the technology-based social entrepreneurs. Finally, an interplay of these variables ascertained the perspectives of social entrepreneurs engaged in TBSE regarding the notion of their firm’s scope and scale. Research limitations/implications The theoretical insights developed in this research study provided an integrated theoretical perspective accommodating both environmental perspectives (industry support and government support) and organizational perspectives (entrepreneurial and market aspects). This was in context of TBSE. Practical implications The insights from this research study could provide a robust and comprehensive understanding to social entrepreneurs regarding the strategic thinking towards scale and scope for a technology-based social venture. Originality/value To the best of the author’s knowledge, this study was one of the first theoretical works in TBSE towards scaling versus scoping perspectives.

Robot obstacle avoidance system using deep reinforcement learning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaojun Zhu ◽  
Yinghao Liang ◽  
Hanxu Sun ◽  
Xueqian Wang ◽  
Bin Ren
Keyword(s):  
Reinforcement Learning ◽  
Collision Avoidance ◽  
Obstacle Avoidance ◽  
Learning Algorithm ◽  
Optimal Path ◽  
Environmental Parameters ◽  
Working Environment ◽  
Content Type ◽  
Practical Applications ◽  
Human Operators

Purpose Most manufacturing plants choose the easy way of completely separating human operators from robots to prevent accidents, but as a result, it dramatically affects the overall quality and speed that is expected from human–robot collaboration. It is not an easy task to ensure human safety when he/she has entered a robot’s workspace, and the unstructured nature of those working environments makes it even harder. The purpose of this paper is to propose a real-time robot collision avoidance method to alleviate this problem. Design/methodology/approach In this paper, a model is trained to learn the direct control commands from the raw depth images through self-supervised reinforcement learning algorithm. To reduce the effect of sample inefficiency and safety during initial training, a virtual reality platform is used to simulate a natural working environment and generate obstacle avoidance data for training. To ensure a smooth transfer to a real robot, the automatic domain randomization technique is used to generate randomly distributed environmental parameters through the obstacle avoidance simulation of virtual robots in the virtual environment, contributing to better performance in the natural environment. Findings The method has been tested in both simulations with a real UR3 robot for several practical applications. The results of this paper indicate that the proposed approach can effectively make the robot safety-aware and learn how to divert its trajectory to avoid accidents with humans within the workspace. Research limitations/implications The method has been tested in both simulations with a real UR3 robot in several practical applications. The results indicate that the proposed approach can effectively make the robot be aware of safety and learn how to change its trajectory to avoid accidents with persons within the workspace. Originality/value This paper provides a novel collision avoidance framework that allows robots to work alongside human operators in unstructured and complex environments. The method uses end-to-end policy training to directly extract the optimal path from the visual inputs for the scene.

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