• Page 238- Please read: Leadership: How to Lead a Pack of Alpha Dogs. Based on Chapter 7, how would you answer that question? What are yoursuggestions? (Not from the author)

G In the case of younger generations of great employees, managers may have to learn to manage a team of aggres- sive, talented people who do not have automatic respect for their seniors. Dealing with this type of team can be a challenge, as subordinates will constantly be asking and expecting managers to prove that their approach is the right one. It might be easy to get caught on the defensive. Two options that generally present themselves in this scenario is to squelch the interferences and risk losing high potential employees to competitors; hear them out, be ready to make your own case and risk feeling resentful for being put on the spot. Suggestions for managers of alpha dogs include: 1. Look for ways to have authentic, one-on-one conversations with your people. Generally, alphas are more likely to listen to you when they know their voices are being heard as well. 2. Remember that it's about serving your company and its people. Don't make customers pay for a misguided attempt at making things easier for you. Look for efficiencies to free you up to add value to the role. 3. Be an \"A player" yourself. Talented, alpha employees pride themselves on being passionate and innovative. Make sure you bring this same passion to the table; look for areas to explore and add a level of personal chal- lenge to thejob in the same manner you expect from your employees. r Done Attachment CHAPTER 7 Salesperson Perfonnance: Motivating the Sales Force LEARNING OBJECTIVES Salespeople operate in a highly dynamic, stressful environment outside of the company. As we have already seen in Chapter 6, there are many factors that influence the salesperson's ability to perform. One of the most critical factors is motivation. It is very important that sales managers understand the process of motivation and be able to apply it to each indi- Viduai in the sales force in such a manner as to maximize his or her performance potential. After reading this chapter, you should be able to - Understand the process of motivation. - Discuss the effect of personal characteristics on salesperson motivation. I Understand how an indiVidual's career stage influences motivation. - Discuss the effect of envrronmental factors on motivation. - Discuss the effect of factors inside the company on motivation. Unfortunately, many firms are not successful in developing systems or programs that are appropriate for the marketing challenges they face and the kinds of people they employ. Consequently, their salespeople are either undermotivated or stimulated to expend too much time and effort on the wrong tasks and actiVities. In either case, sales effectiveness and productivity suffer. In View of the complicated nature of motivation and its critical role in sales management, the rest of this chapter as well as Chapter 1 1 (on compensation) are devoted to the subject. This chapter examines what is known about motivation asa psychological process and how a person's motivation to perform a given gob is affected by environmental, organizational, and personal variables. Chapter 11 discusses compensation plans and incentive programs sales managers use to stimulate and direct salespeople's efforts. THE PSYCHOLOGICAL PROCESS OF MOTIVATION Most industrial and organizational psychologists view motivation as an individ- ual's choice to (1) initiate action on a certain task, (2) expend a certain amount of effort on that task, and (3) persist in expending effort over a period of time.' For our purposes, motivation is viewed as the amount of effort the salesperson desires to 224 IMPLEMENTATION OF THE SALES PROGRAM expend on each activity or task associated with the job. This may include calling on potential new accounts, developing sales presentations, and managing technology. The psychological process involved in determining how much effort a salesperson will want to expend and some variables that influence the process are shown in Exhibit 7.1. The conceptual framework outlined in Exhibit 7.1 is based on a View of motiva- tion known as expectancy theory. A number of other theories of motivation exist,2 and many of them are useful for explaining at least a part of the motivation pro- cess. However, expectanqi theory incorporates and ties together, at least implic- itly, important aspects of many of those theories. [t has been the subject of much empirical research in sales management, and it also provides a useful framework for guiding the many decisions managers must make when designing effective moti- vational programs for a sales force. Consequently, the remainder of this discussion focuses primarily on expectancy theory, although several other theories are men- tioned later when we examine how personal characteristics affect the motivation of different individuals. Major Components of the Model The model in Exhibit 7.1 suggests that the level of effort expended by a salesperson on each fob-related task will lead to some level of performance on some performance dimension. These dimensions include, for example, total sales volume, profitability of sales, and new accounts generated. It is assumed the salesperson's performance Level I allot! expended EXHIBIT 7.1 The psychological Level of effort expended determinants of motivation Job activity task (e.g., developing sales presentations, Expectancy calling on potential Perceived linkage between increased new accounts, servicing effort on task and existing customers, etc.) Motivation improved performance on some performance dimension Level of performance on some performance dimension Instrumentality Perceived relationship (e.g., sales volume, between improved new account sales, performance on some profitability of dimension and sales, etc.) attainment of increased Valence for rewards Performance Instrumentality Increased attainment Valence for Reward multiplied of reward(s) Perceived desirability of by valence Intrinsic receiving more of a Extrinsic particular reward SALESPERSON PERFORMANCE: MOTIVATING THE SALES FORCE 225 on some of these dimensions will be evaluated by superiors and compensated with one or more rewards. These might be externally mediated rewards, like a promotion, or internally mediated rewards, such as feelings of accomplishment or personal growth. A salesperson's motivation to expend effort on a given task is determined by three sets of perceptions: (1) expectancies-the perceived linkages between expending more effort on a particular task and achieving improved performance; (2) instrumentalities-the perceived relationship between improved performance and the attainment of increased rewards; and (3) valence for rewards-the per- ceived attractiveness of the various rewards the salesperson might receive. Expectancies-Perceived Links between Effort and Performance Expectancies are the salesperson's perceptions of the link between job effort and performance. Specifically, expectancy is the person's probability estimate that expending effort on some task will lead to improved performance on a dimension. Sales managers are concerned with two aspects of their subordinates' expectancy perceptions: magnitude and accuracy. The following statement illustrates an expec- tancy perception: "If I increase my calls on potential new accounts by 10 percent [effort], then there is a 50 percent chance [expectancy] that my volume of new account sales will increase by 10 percent during the next six months [performance level]." Key questions that arise from a salesperson's expectancies and their impli- cations for sales managers are identified in Exhibit 7.2. Accuracy of Expectancies The accuracy of expectancy estimates refers to how clearly the salesperson understands the relationship between effort expended on a task and the resulting achievement on some performance dimension. When salespeople's expectancies are inaccurate, they are likely to misallocate job efforts. They spend too much time and energy on activities that have little impact on performance and not enough on activities with a greater impact. Consequently, some authorities refer to attempts to improve the accuracy of expectancy estimates as "trying to get salespeople to work smarter rather than harder."3 Working smarter requires that the salesperson have an accurate understand- ing of what activities are most critical-and therefore should receive the greatest effort-for concluding a sale. Of course, a single activity might be carried out in a number of ways. For instance, a salesperson might employ any of several different sales techniques or strategies when making a sales presentation. Therefore, working smarter also requires an ability to adapt the techniques used to the needs and pref- erences of a given buyer. As a result of the war on terrorism and events in the Middle East, salespeople have learned to adapt to a new selling environment. For example, due to security concerns as well as higher travel costs customers and salespeople are considering226 IMPLEMENTATION OF THE SALES PROGRAM EXHIBIT 7.2 Question Management Implications Important questions and Accuracy of Expectancy Estimates . If substantial variation exists, salespeople may management . Are salespeople's views of the linkage devote too much effort to activities considered implications of between activities and performance outcomes unimportant by management, and vice versa. salespeople's consistent with those of sales managers? This might indicate a need for the following: expectancy -More extensive/explicit sales training. estimates -Closer supervision. -Evaluation of salesperson's effort and time allocation as well as performance . Are there large variations in expectancy . If high-performing salespeople hold reasona- perceptions between high performers and low performers in the sales force? bly consistent views concerning which activ- ities are most important in producing good performance, those views might be used as a model for sales training/professional develop- ment programs. Magnitude of Expectancy Estimates . All other things equal, the higher the sales- . If such relationships are found, they may sug- person's expectancy estimates, the greater gest additional criteria for recruitment/selection. the individual's motivation to expend effort. -Do personal characteristics of salespeople influence the size of their expectancies? Overall self-esteem? Perceived competence? Mental ability (Intelligence)? Previous sales experience? -Do perceptions of uncertainty or con- . During periods of economic uncertainty, man- straints in the environment (e.g., materials agement may have to change performance shortages, recession, etc.) reduce criteria, evaluation methods, or compensation salespeople's expectancy estimates? systems to maintain desired levels of effort from the sales force (e.g., lower quotas, reward servicing rather than selling activities). other ways of communicating with one another. As a result, presentation skills are more important than ever as Web-conferencing and teleconferencing are replace ing the one-on-one presentation. As one management consultant put it, "If I do a teleconference, I'll have to prepare much more of a presentation." These kinds of changes have led to new skills and the reinforcement of existing ones. It is impor- tant that management motivate salespeople to expend effort on appropriate activ- ities or approaches that can increase performance and lead to greater satisfaction within the sales force. Unfortunately, it is possible for a salesperson to misjudge the true relation- ship between the effort expended on a particular task and resulting performance. When this happens, the salesperson misallocates efforts. The rep spends too much time and energy on activities that have relatively little impact on perfor- mance and not enough on activities with greater impact. Making matters even SALESPERSON PERFORMANCE: MOTIVATING THE SALES FORCE 227 more complex, research suggests that successful salespeople can overestimate their abilities and expend too much effort attempting to close the sale. In these situations salespeople believe that with a little more effort (and resources) they will be successful.* Research suggests that a salesperson's immediate superior, with presumably greater knowledge and experience, will more accurately perceive the linkages between effort and performance. If this is true, then inaccurate expectancy percep- tions can be improved through closer contact between salespeople and their super- visors. Expanded sales training programs, closer day-to-day supervision of the sales force, and periodic review of each salesperson's time and effort by the supervisor should improve the accuracy of expectancy estimates. Salespeople often complain that supervisors have an unrealistic view of condi- tions in the field. In addition, they do not realize what it takes to make a sale. If these complaints are valid, managers' perceptions of the linkages between effort and performance may not be appropriate criteria for judging the accuracy of sales- people's expectancies. It may be better to use the expectancy estimates of the highest performing salesperson in the company as a model for sales training and supervision. Magnitude of Expectancies The magnitude of expectancy estimates reflects the salesperson's perceptions ofMagnitude of Expectancies The magnitude of expectancy estimates reflects the salesperson's perceptions of his or her ability to control or influence his or her own job performance. Several individual characteristics are likely to affect these expectancies. Some psychologists suggest that a salesperson's overall level of self-esteem and perceived ability to perform necessary tasks are positively related to the magnitude of the person's expectancy estimates. Similarly, the salesperson's general intelligence and previous sales experience may influence the individual's perceived ability to improve performance through personal efforts. If these relationships are true, they may be useful supplementary criteria for the recruitment and selection of salespeople. Environmental characteristics also influence a salesperson's perceptions of the linkages between effort and performance. How the salesperson perceives general economic conditions, territory potential, the strength of competition, restrictions on product availability, and so forth are all likely to affect his or her thoughts on how much sales performance can be improved by simply increasing efforts. The greater the environmental constraints a salesperson sees as restricting performance, the lower the rep's expectancy estimates will be. Turbulence in financial markets, and fluctuations in leading global economies have created a great deal of economic uncertainty in many global markets. This has led companies to reevaluate their purchases, and consequently, salespeople are faced with a much more complex and difficult selling environment. Therefore, managers may find it desirable to change performance criteria or evaluation methods during periods of economic uncer- tainty to maintain desired levels of effort from the sales force. 228 IMPLEMENTATION OF THE SALES PROGRAM EXHIBIT 7.3 Factors influencing Level of effort expended the motivation Personal and process organizational variables Job activity Expectancy or task Perceived effort/ Role perceptions performance probability Level of performance Salesperson's Valence on performance for Performance Motivation dimension Instrumentality multiplied Company's by valences for rewards compensation plan Instrumentality Perceived performance/ Role perceptions reward probability Personal and organizational variables Increase in attainment of reward(s) Salesperson's Valence Internally mediated for Reward(s) Externally mediated Salesperson's job satisfaction ntrinsic Extrinsic As Exhibit 7.3 indicates, personal and organizational characteristics affect the magnitude and accuracy of salespeople's expectancy perceptions. Managers must consider these factors when deciding on supervisory policies, compensation, and incentive plans so their subordinates' expectancies will be as accurate as possible. The factors that affect salespeople's expectancy estimates, along with their mana- gerial implications, are discussed later in this chapter. Instrumentalities-Perceived Links between Performance and Rewards Like expectancies, instrumentalities are probability estimates made by the salesper- son. They are the individual's perceptions of the link between job performance and various rewards. Specifically, an instrumentality is a salesperson's estimate of the probability that an improvement in performance on some dimension will lead to a specific increase in a particular reward. The reward may be more pay, winning a sales contest, or promotion. As with expectancies, sales managers should be concerned with both the magnitude and the accuracy of their subordinates' instrumentalities. Accuracy of Instrumentalities The accuracy of instrumentality estimates refers to the true linkages between per- formance on various dimensions and the attainment of rewards as determined by management practices and policies on sales performance evaluation and rewards for levels of performance." Exhibit 7.4 identifies some important questions for sales