Scribd
Upload
1K views

Sales Manager Performance

The document discusses the purposes and approaches for evaluating salesperson performance, including identifying training needs, motivating salespeople, and ensuring compensation is aligned with performance. It also covers key issues like balancing outcome-based metrics with subjective behavior assessments, and criteria for evaluation such as sales results, behaviors, professional development, and profitability. The goal of evaluations is to improve salesperson and organizational performance.

Uploaded by

Abdul Rahman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1K views

Sales Manager Performance

The document discusses the purposes and approaches for evaluating salesperson performance, including identifying training needs, motivating salespeople, and ensuring compensation is aligned with performance. It also covers key issues like balancing outcome-based metrics with subjective behavior assessments, and criteria for evaluation such as sales results, behaviors, professional development, and profitability. The goal of evaluations is to improve salesperson and organizational performance.

Uploaded by

Abdul Rahman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Purposes of Salesperson Performance Evaluations

1. To
ensure
that
disbursements are
performance

compensation
and
other
reward
consistent with actual salesperson

2. To identify salespeople that might be promoted


3. To identify salespeople whose employment should be
terminated and to supply evidence to support the need for
termination
4. To determine the specific training and counseling needs of
individual salespeople and the overall sales force
5. To provide information for effective human resource
planning
6. To identify criteria that can be used to recruit and select
salespeople in the future
7. To advise salespeople of work expectations
8. To motivate salespeople
9. To help salespeople set career goals
10.
To relate salesperson performance to sales
organization goals.
11.
To enhance communications between salesperson and
sales manager.
12.

To improve salesperson performance

Salesperson Performance Evaluation Approaches


1. Most evaluate on an annual basis
2. Most combine input and output criteria which are evaluated
using quantitative and qualitative measures
3. When used, performance standards or quotas are set in
collaboration with salespeople
4. Many assign weights to different objectives and incorporate
territory data.
5. Most use multiple sources of information

6. Most are conducted by the field sales manager who


supervises the salesperson
7. Most provide a written copy of the review and personal
discussion
Key Issues in Evaluating and Controlling Salesperson Performance

Outcome-Based Perspective

Focuses on objective measures of results with little


monitoring or directing of salesperson behavior by
sales managers

Behavior-Based Perspective

Incorporates complex and often subjective


assessments of salesperson characteristics and
behaviors with considerable monitoring and directing
of salesperson behavior by sales managers

Dimensions of Salesperson Performance Evaluation


Behavioral
Professional Development
Profitability
Results
Criteria for Performance Evaluation
Behavior: Consists of criteria related to activities performed by
individual salespeople

Sales calls,

customer complaints,

required reports submitted,

training meetings,

letters and calls

Professional Development:

Assess improvements in certain characteristics of


salespeople that are related to successful performance in
the sales job

Characteristics include - Attitude, product knowledge,


initiative and aggressiveness, communication skills, ethical
behavior

Results:

Salespeople measured objectively based on results such as


sales, market share, and accounts

A sales quota represents a reasonable sales objective for a


territory, district, region, or zone

Some research shows that rewards for achieving results


have a negative effect on performance and satisfaction

Elements Important in Assigning Sales Quotas


Concentration of businesses within the territory

Geographic size of the territory

Growth of businesses within the territory

Commitment by the sales manager to assist the sales


representative

Complexity of products sold

Sales representatives past sales performance

Extent of product line

Financial support (e.g., compensation) a firm provides

Relationship of product line

Amount of clerical support

Criteria for Performance Evaluation


Profitability:

Salespeople have an impact on gross profits through the


specific products they sell and/or through the prices they
negotiate for final sale.

Salespeople affect net profits by the expenses they incur in


generating sales.

Criteria Examples

Net profit dollars

Gross margin per sale

Return on investment

Number of orders secured

Selling expenses versus budget

Performance Evaluation Methods: Characteristics any method


should include
Job Relatedness

Reliability

Validity

Standardization

Practicality

Comparability

Discriminability

Usefulness

Performance Evaluation Methods Graphic Rating/Checklist


Methods
Salespeople are evaluated using some type of performance
evaluation form

Especially useful in evaluating behavioral and professional


development criteria

May be filled out by customers

Disadvantage is providing evaluations that discriminate


sufficiently

Rank all salespeople according to relative performance on


each performance criterion

These methods force discrimination as to the performance


of individual salespeople

May be complex

Rankings only reveal relative performance evaluation

Management By Objectives (MBO)


1. Mutual setting of well-defined and measurable goals within
a specified time period.
2. Managing activities within the specified time period toward
the accomplishment of the stated objectives.
3. Appraisal of performance against objectives.
Salesperson Job Satisfaction
Job satisfaction related to turnover, absenteeism,
motivation, and organizational commitment

Job satisfaction may be related to performance (direction of


relationship is unknown)

INDSALES may be used to measure job satisfaction

Results may identify areas where manager may intervene to


improve job satisfaction

You might also like