Laws of Sales Management and Motivation

THE LAWS OF SALES MANAGEMENT AND MOTIVATION - Part 1

Copywright Spearhead Training & Verlag Norbert Muller

To get the best from each member of your team, you have to inspire, motivate, manage and encourage. Concern for productivity and people will be foremost in your mind. Not only are you responsible for controlling the influences which act on individuals in your team, you must also ensure that each member of your staff is placed in an environment which will stimulate, encourage and permit growth.

Motivation is an ongoing cyclical process, not a one off event. People are never satisfied for long. As a manager, it is up to you to create the conditions under which your staff are more likely to motivate themselves.

This is where the laws of Sales Management and Motivation come into play.
The details cover leadership, motivation and management. Each section deals with a particular method or aspect of management, and has been laid out for easy reading.

1. MANAGEMENT BY APPRECIATION OF PERFORMANCE - THE IMPORTANCE OF APPRECIATION

Are you familiar with the following situation? Every day, without fail, Mrs. Short, Secretary, types her boss` correspondence and takes telephone calls. Her work is vitally important for both her boss and the company, but her importance is only really realised when she is absent due to illness. She gets a bunch of flowers for her birthday and a bottle of champagne and a box of chocolates every Christmas. If it is particularly hectic at work, she has to stay a little longer in the office. Her boss may express a few appreciative words, such as "How could I have possibly managed without you?" but she receives little appreciation for the duties she performs on a daily basis.

Everybody needs appreciation, because it implies that one is held in high esteem as a person. It is easy to see the positive effect that praise and appreciation has on children - they immediately express their emotions and show everyone their feelings of joy and pride. Adults tend to conceal their feelings. Nevertheless, praise and appreciation also have a great influence on them.

Many managers seldom realise their employees` constant need for appreciation, despite the fact that psychological experiments have long stressed the importance of appreciation to high performance in the world of business.

RULES GOVERNING THE APPRECIATION OF PERFORMANCE

Often managers express appreciation and praise in a short word such as "Good!" This, however, can be dangerous, as the employee may not necessarily recognise the praise as such - he/she could interpret the commendation as a dry assessment of his/her everyday work. For this reason, psychologists recommend that managers express praise using a complete sentence.

In addition, praise has a more motivating effect if expressed in connection with everyday, routine tasks, than if expressed in connection with tasks, which involve the solution of particular problems. Consequently, managers are advised to use a form of well-directed praise, which is appropriate for every situation.

A good performance must be recognised immediately, for if a particularly good performance is not commended, the employee is likely to think, "What`s the use of trying - nobody notices anyway". They will become resigned and productivity will drop.

An employee who has taken over new responsibilities is especially in need of appreciation. It helps to overcome initial difficulties and makes them determined to persevere and take the initiative.

The particular performance in question should always be centre-stage where recognition and appreciation are concerned. Misunderstandings could arise if only the person is praised, rather than the particular piece of work or achievement.

Be particularly careful when praising an individual employee in front of others. Some may feel put down by the praise of one individual. They may feel jealous and envious of their colleague. It is better to emphasise the employee`s particularly good performance.

Praising the employees should never become a fixed routine duty, which is said mundanely and automatically without a second thought. If it becomes a routine gesture, you run the risk of it not being taken seriously. It is also important that your words of praise are backed up with other active forms of appreciation, for example by giving the employee more responsibility or the possibility of promotion or a wage increase. Otherwise, the employees may think, "The boss says nice things, but they`re not actually doing anything positive for me".

APPLICATION IN SALES MANAGEMENT

There are several jobs in the sales force, which offer little opportunity for producing excellent performances. For this reason, routine tasks, which salespeople carry out on a daily basis, should also be praised. If only excellent performance is praised, the average employee feels neglected, a situation, which can have negative repercussions - his/her motivation, and hence his/her performance will begin to drop. Stress the employee`s reliability and the care with which he/she carries out their duties.

Express your appreciation freely and directly:

"I was very satisfied with your performance in the last quarter, John".

Cite individual achievements:

"I am particularly happy that you have reached your turnover target, after just falling short these last two quarters. Your average daily visit figures have increased over the last two months".

Underline the reasons for the increase in productivity:

"The increase in productivity is mainly attributable to the fact that you have planned your client visits more precisely. This has increased your active selling time, which has had a positive effect on turnover".

Indicate the effects of an increase in productivity:

"Your increased productivity has contributed to our reaching the area target and team bonus. So, you can see that you have also done your colleagues a good turn".

Encourage the employees to continue their efforts:

"If you continue like this, we will certainly be having a discussion like this at the end of the next quarter!"

Take average performances into consideration also:

"Where would our company be without your constant dedication?"

By adhering to these guidelines, the employees will begin to feel less frustrated, while at the same time you will encourage the sales representatives to increase productivity.

> Enhance your personal contact with salespeople who are only average performers. Send them appreciative notes, make a positive statement on their report cards, or congratulate them over the telephone. Always bear in mind that a routine performance, carried out over a long period of time, is the equivalent of an above-average performance.

> Vary the forms of your appreciation. You need not always reward your best salespeople with cash bonuses. Invite the salesperson and their partner to dinner. Give them an extra day`s holiday, or motivate them by giving them a larger desk for their office. Give them a consultative contract, in which you make them part of a committee which makes sales decisions.

Psychological studies show that feeling appreciated has a significant effect on productivity levels and staff performance. The same is true of members of the sales force. Despite the high financial motivation, high-performing salespeople particularly value fair treatment within a company. This means that the sales manager should pay particularly close attention to corporate social relations. Good salespeople certainly have excellent earning opportunities, but in order to keep them in the company in the longer term, you must ensure that they are taken seriously and recognised as a valuable asset to the company.

2. MANAGEMENT BY STAFF ASSESSMENT - DOING JUSTICE TO THE EMPLOYEE

Everyone feels the need to make a favourable impression. The impression we convey to others is extremely important to us. Now and again, due to over-excitement for example, we can sometimes create a bad impression rather than a good one. But why are we so worried about making an impression?

Instinctively, we know that judgements are made wherever people gather together - judgements on how we look and on our personalities. Psychologists have shown that social judgements are not only an expression of personality and the prevailing mood, but are also dependent on their circumstances and situation.

Scenario: You are a sales manager interviewing an applicant. A fashionably dressed young man/woman comes into the office. You immediately form a judgement of them. They value their appearance and show good taste. The next day you happen to see the same young person again, in a shopping arcade - this time they are wearing an old pair of jeans. Do you feel unsure about the first judgement you made?

It would be too rash to draw conclusions from a fleeting glance at the sales representative`s behaviour in several different situations. Only by having access to additional comprehensive information can we form an appropriate picture and make an accurate assessment. For this reason, psychologists recommend that behaviour be observed in as many situations as possible in order to avoid making errors of judgement.

THE BEHAVIOUR FACTOR
Errors of judgement can be attributed to three factors. Extreme behavioural distortions occur if people feel that they are being observed and judged at the same time. This can lead to play acting or over-exaggerated inhibitions. Exams and presentations are examples of situations, which particularly induce this sort of behaviour.

Social relations can also influence an employee`s productivity. Work performance depends on social contacts made in the workplace. For example an employee who is rejected by their workmates, loses any enjoyment they derives from their work. Consequently, this affects the employee`s work performance.

Influences from the employee`s private life should not be underestimated either. A sudden drop in an employee`s productivity can, for example, be caused by family difficulties.

THE IMPRESSION FACTOR
The second factor, which can lead to errors of judgement, is the impression factor. Judgements are made in a relative field of reference. This can be illustrated as follows: Put your left hand in a pan of hot water and your right hand in a pan of cold water. Then hold both hands in a pan of lukewarm water. The left hand finds the lukewarm water temperature warm and the right hand finds it cold. The temperature in the first set of pans was decisive. Psychologists speak of a contrast principle - a judgement is greatly dependent on whom or what was judged beforehand.

A widely made mistake, as far as the impression factor is concerned, is prejudice. This is usually based on insufficient information. An isolated, individual case forms the basis for a sweeping generalisation. For example: The French drink the most wine in Europe. Pierre is French - therefore, Pierre is a heavy wine drinker. Another widely spread prejudice is that people who wear glasses are particularly intelligent.

First impressions stick with you - even if they are wrong. The long-term effect is further enhanced if the first impression is endorsed by information prior to meeting.

Psychologists describe another form of perception as selective perception - i.e. we prefer to perceive whatever best suits our own ideas and prejudices. We tend to dismiss perceptions that do not fit into our own perception of the world.

THE EXPRESSION FACTOR
The third factor of opinion forming is expression. Many standardised judgements depend on the identification of certain characteristics. However, different people often interpret these differently. For example, one manager may interpret the assessment `Good at contact` to mean that an employee is good at taking the initiative and is open-minded, whereas another manager may interpret the statement to mean that the employee does not concentrate on their work and prefers to spend most of the day chatting with colleagues.

Such differing interpretations arise because there is no exact definition of the individual characteristics. Psychologists describe this phenomenon as deficient criteria clarity. It is, therefore, important to determine what is to be precisely understood by each characteristic before a judgement is made.

APPLICATION IN SALES MANAGEMENT

It is essential that the sales manager knows the main sources of errors of judgement. Only then can they make objective decisions, establish goals and avoid errors of judgement

Example 1

You suddenly notice low productivity in a member of the sales force, who has always been particularly competent over the years. During a private discussion with them it emerges that the employee is divorced and is currently going through a traumatic personal crisis. As you are interested in your top sales personnel, you try and work out measures which will help them to overcome their depression.

Example 2

One of your top salespeople surprises you by handing in their notice. You try to find a replacement. None of the interviewees quite come up to scratch, but you decide to employ the most suitable. However, you always catch yourself comparing the new one to the predecessor. Think about the principle of contrast. Whoever replaces a top employee, often has a difficult time in front of them and may not necessarily be judged as well as their performance merits. Be patient with the new employee and give them time to develop their full potential.

Selective perception on the part of a manager can have drastic consequences for the employee. For example, a manager can interpret a break taken by an employee who has already been judged to be lazy, quite differently to a break taken by an employee who is deemed to be assiduous and diligent.

Try to gather as much information as possible about your employees from different sources. Only then it is possible for you to make a fair and equitable judgement. Take the following points into consideration when conducting an assessment discussion with an employee:

> The assessment discussion should be private.

Arrange a time and give the employee a copy of your assessment as soon as possible before the meeting. As this gives you both a chance to prepare for the meeting, the salesperson will not get the impression that they are at your mercy. They will also feel that they have the chance to express their own opinion.

> Signal to the employee that you are interested in them. The meeting is designed to encourage, not condemn them. For example, "I`m thinking of extending your training".

> Ensure you have the complete picture of the employee`s performance. Lay particular emphasise on the positive sides: "You have shown considerable dedication recently".

> Do not judge the employee`s personality. "You have tended to be rather unpunctual recently. I don`t need unreliable salespeople". Judge, instead, the salesperson`s behaviour, "I have noticed that you have not met several important deadlines recently. I am satisfied with your work in general, but can you explain these incidents".

> Work with the employee to develop a strategy which will improve his performance. For example, "We should plan important meetings at trade centres together and arrange them over the telephone beforehand".

Always bear in mind that careful activity analysis is a prerequisite for useful staff assessment

3. MANAGEMENT BY DELEGATE - STEPS TOWARDS INDIVIDUAL INITIATIVE

Delegation is an important managerial task; it not only relieves the strain on the manager, but also helps the employee to develop more initiative.

Delegating is, however, not as self-evident as it may seem. Some managers tend to carry out most of the work themselves. They develop no strategy for involving their employees more with the work in hand; giving them more complex tasks to complete also gives them more responsibility. The other side of the coin is that managers are annoyed if their employees are not working hard enough. They often overlook the fact that the cause of this may lie in their inconsistent managerial style.

A Typical Problem

Example 1

Branch manager Knuckle has proven his worth. He is known to be a hard worker and always reaches his turnover targets. However, the main reason for this result is that he spends a significant part of the day out in the field, selling. He devotes little time to the employees under him and does not bother with delegation or further training for his employees.

Mr. Knuckle suddenly falls ill and is unable to work. The work, which in the past he performed alone, lies untouched in the branch office. As he has not shown anyone else what was involved, no one knows what to do. The employees can hardly pool enough experience between them to perform Mr. Knuckle`s work and are afraid to take on the responsibility.

Example 2

As the manager has set himself the wrong priorities, he is short of time and the employees lack work. The main reason for this is that the manager is doing jobs, which he could and should have delegated to other employees. The manager carries out work that one of the employees could easily have done. This behaviour does him credit as a hard worker, but shows him to be a bad manager.

The scenario does not need to be as dramatic as in the case, but managers should be aware of the psychological consequences of such behaviour - it shows inconsistent managerial skills. Psychological studies show that consistent managerial skills are imperative for good staff management.

THE IMPORTANCE OF CONSISTENCY

Psychologists often refer to the principle of `Consistency`. If people have conflicting information about themselves or somebody else, they end up in a state of physical and mental stress. Leon Festinger calls this Cognitive Discord.

There are different levels at which such discord can appear.

At the level of logic, it could manifest itself through someone believing that they are seeing unidentified flying objects. At the same time, however, they know that there is no such thing as UFO`s.

At a cultural level, discord could emerge if someone laughs at a funeral, although they know that it is not appropriate.

At the level of opinion and action, discord can arise through the fact, for example, that it is generally known that smoking is unhealthy. Nevertheless, there are still those who smoke.

According to Festinger, cognitive discord can also arise when decisions have to be made. It is often the case that the choice of one alternative means doing without another. An example of this occurs in car sales: e.g. if you decide you want the executive saloon, you have to do without the sports car.

Everyone wants to live in harmony with themselves. However, discord disturbs the equilibrium and creates the desire to restore `consistency`. This can sometimes go as far as suppressing unpleasant information, in a bid to maintain a `consistent` image of the world. This is also a sign that people value consistent behaviour. Consistent behaviour means that a person is in harmony with themselves and avoids disturbing discords.

APPLICATION IN SALES MANAGEMENT

The need for consistency, which has been established by psychologists, also plays a role in the relation between managers and employees. It is within the framework of delegation in particular that a manager should demonstrate consistent behaviour.

If you quickly take back a task you have already delegated, you are not only burdening yourself with additional work, but you are also depriving the employee of the opportunity to perform well and be successful. At the same time, you are violating the principle of consistency. The employee will experience discord and increased physical tension or stress.

On the one hand, you have shown them trust in that you entrusted a task to them, but on the other hand, your behaviour signalling the exact opposite. This causes many employees to begin doubting their ability - some draw the wrong conclusion from this and their productivity level can drop significantly. Therefore, when delegating, a manager should pay particular attention to his own behaviour and follow the laws of consistency.

What to remember when delegating

> Choose the employee to whom you will be delegating the task without telling them your intentions. Take into account the employee`s perseverance, as they will have to deal with disappointments and setbacks during the course of the project.

> Discuss the subject of delegation with the salesperson before conveying to them the new task. Tell them you are just thinking of the future allocation of tasks.

> Delegate on a provisional basis, by saying, "We will initially work together on the project". You will also be at their disposal, so that they can ask questions immediately, if they have difficulty with new responsibilities.

> Withdraw, but incorporate automatic controls. Allow the salesperson to work on their own, but establish certain controls which will help you to monitor the progress of the project, e.g. spot checks, rotational analysis, statistics, etc.

> Observe the salesperson inconspicuously. If everything is going well, you can increase the time lengths between the checks or replace them with occasional informal discussions. Make sure that you stay informed of the employee`s performance and progress. If they are encountering difficulties, don`t delay in offering advice and assistance.

Delegating is an important managerial skill. It should not, however, be a way of avoiding conflicts and unpleasant tasks. Hence, there are several cases in which delegation is not appropriate.

> Important information concerning area changes, cuts in commission etc., should not be conveyed to the sales force by members of staff or assistants. It is the branch manager`s job to convey this type of information.

> Discussing a salesperson`s performance is the sales manager`s duty. If a sales manager delegates this task to someone else, they are destroying their own authority in the eyes of their employees.

> The sales manager receives a letter of complaint from a good client whom they have known for years. They find the matter embarrassing, so hands the complaint to an assistant. Whoever shirks an unpleasant task at the expense of others, quickly loses the employees` and clients trust.

> A salesperson is lying in hospital after a nasty accident. A sales manager who sends their secretary to the hospital with a bunch of flowers is not displaying the right amount of sympathy. Only a personal visit by the manager will prove to the sales representative that their boss really cares about the people in their employment.

4. MANAGEMENT BY ATTRIBUTION - BELIEVING IN THE EMPLOYEES` SUCCESS

Everyone knows from their school days that if you got a good mark, you did not just feel wonderful, but you also felt that you were extremely clever and talented - even if some of it had been copied from the class genius. If other pupils got a good mark, we had a tendency to feel that they had not studied as diligently as we had, and attributed to the good grade to their constant good luck.

We are engaged in a constant search for causes for our behaviour. In this search, we tend to attribute successes to ourselves and failure to the prevailing circumstances.

HOW ARE BAD PERFORMANCES ASSESSED?

What behavioural causes are seen, for example, as the root of bad performances? Psychologists Mitchell and Wood have investigated this subject by studying the relationship between nurses and their superiors.

The nurses were divided into two groups. First of all, the superiors of both groups were told that the nurses had performed badly (they had prescribed an inaccurate dosage of medication). Those in charge of the first group were given additional negative information about their nurses` work (they were told that the nurses had previously made mistakes during the administration of medication). The superiors of the second group were given no additional information about previous violations of the nursing code.

How did the nursing superior`s judge the nurses` behaviour? Those in charge of the first group came to the conclusion that their nurses were totally unsuitable - i.e. they doubted their nursing ability. The nursing superiors of the second group, who were basing their judgement on just one transgression, put the misdemeanour down to external circumstances, such as family difficulties.

EXTERNAL AND INTERNAL ATTRIBUTION

Psychologists distinguish between two types of attribution. If external circumstances are drawn on as an explanation, such as good luck being held responsible for someone`s success, this is called external attribution. Internal attribution occurs when abilities, i.e. internal reasons or circumstances, are given as the cause of behaviour.

APPLICATION IN SALES MANAGEMENT

As a manager, you have the task of correctly identifying internal and external attribution. You should know the advantages and disadvantages of both ways of explaining behaviour. Always bear in mind that the manager`s attributions should help integrate the employees into the company and increase their productivity and willingness to perform.

An important aspect of this is the relationship between the attributions made by a supervisor and the reactions this triggers among the employees. An internal attribution means the employee is held responsible. In the case of positive attribution - for example, "I know you`ll make it!" - the employee will make more of an effort. In the case of negative attribution - "You`re totally incompetent!" - the employee may begin to doubt their abilities.

If you always attribute the success of a very diligent sales representative to external factors, i.e. holding good luck responsible for their success, this can discourage the salesperson in the long run. They will begin to lose faith in their own ability.

If you notice that, for once, an employee is not performing up to scratch, this may be attributable to external factors. What attenuating circumstances could be involved? If on the other hand, you have an employee, whose work has left something to be desired for some time now, you should check your external attribution again (for example, poor economic climate): perhaps this attribution is merely an excuse for the employee`s unwillingness to work).

You are confronted with the following problem: for some time now, the turnover of one of your salespeople has remained the same. What could be the reasons lying behind this?

> First of all check the following: what are the internal causes? What abilities does the sales representative possess and what are their negative aspects? In what area are they slacking and what mistakes do they make?

> If, during a private discussion with the employee, they complain about the competition, pursue this point? You know that it is easy to push the blame for failure onto external factors. Ask detailed questions about their visiting schedule.

> Take possible external factors into consideration. Have they had a run of bad luck recently? Ask about their personal relationships. Try and work together with each other to draw up a strategy designed to temporarily relieve their workload. Make sure, however, that this does not become a permanent fixture. Convey to the employee the feeling that this consideration of their current problem is a means of restoring their productivity.

> Not every external factor given is merely an excuse. On the other hand, not every set of circumstances repeatedly justify poor performance. Trust your employees` ability and success.

> Convey your confidence to the employee (despite any transgressions). Show them you are personally convinced that they are capable of overcoming this latest spell of low productivity. Be equal in your attribution - do not attribute everything to lack of ability. On the other hand, do not allow yourself to be fobbed off with lame excuses.

5. MANAGEMENT AS AN EXCHANGE PROCESS - OBSERVING THE NEED FOR JUSTICE

Nothing is more annoying than the feeling that you are being treated unjustly. In school, unjust marks is a common cause of arguments between pupils and teachers. In the working world, remuneration is most often found to be unjust. If there appears to be no relation between the work accomplished and the salary received for it, this can lead to complaints and dissatisfaction.

Even the praise of a colleague can induce feelings of jealously and neglect among the other employees, "Imagine! He is being praised whilst the rest of us work hard all year round, without any appreciation". Psychologists have carried out many experiments on the subject of appreciation and developed a theory of fairness.

THE THEORY OF EXCHANGE

Lutz Von Rosenstiel characterises the Theory of Exchange as follows: it functions according to the principle "You scratch my back and I`ll scratch yours". People come together in social relationships in order to exchange various things. In the foreground is the desire that the reward for something is equivalent to the effort put into it. An imbalance occurs, for example, if a person feels that they have been overpaid or underpaid. This feeling results from comparison with others. It disturbs our physical equilibrium and motivates us to redress the balance.

Individual cases depend on what the employee understands by "scratch". It can be their performance or the time they devote to their work. What one receives in the exchange can also be perceived differently. For some, only the money matters, for others it is honour and glory, whereas the contact or title matters for quite a few.

APPLICATION IN SALES MANAGEMENT

A sales manager should respect their employee`s need for fairness and justice. This desire for justice is not only in relation to pay, but encompasses every aspect of human interaction, including the time and attention that a manager devotes to individual employees.

> If your employees do small favours for you, never forget to express your gratitude and appreciation. This enhances their faith in fair appraisal while at the same time gives rise to a sense of commitment. This in turn, has a positive effect on the salespeople`s sense of loyalty and responsibility to the company.

> Assign a market research job to one of your sales staff. This will extend their range of abilities and, in addition, their self-esteem. Explain your actions, "I`ve been observing your diligence for a long time. Wouldn`t you like to learn something new?"

> One of your salespeople has, through great dedication, been performing brilliantly over the years. However, their somewhat inefficient working style is now causing signs of physical and psychological wear and tear. They are often ill and absent-minded. Offer to help this salesperson and show them how it is possible to carry out their work with less effort.

> Emotions always get heated over unfair pay. Bear in mind that, at the end of the day, you can never do justice to every single employee. Overpayment, as well as underpayment, can lead to dissatisfaction and poor performance amongst your sales staff.

> If the sales force is underpaid, it could result in low selling figures, poor after-sales service and a drop in morale. Money is still one of the most important motivating factors for salespeople.

> Likewise, permanent overpayment of your top salespeople can also have negative effects. When you take a look at a salesperson`s high commission, remember the principles of fairness and justice; the ratio between giving and taking is out of balance - the company is giving too much. In a situation like this, do not shy away from trimming the sales representative`s commission.

> Stand up for the legitimate interests of your sales staff. The satisfaction of your sales people is just as important as customer satisfaction, and the welfare of the whole company is also dependent on the fact that your sales force is satisfied.

Ask yourself in all honesty if you are giving your sales force enough scope for action and enough decision-making freedom when they have a better overview of the situation than you do (for example, price negotiations or complaints)? If you demonstrate trust in an employee, they will feel committed to you and to the company. This sense of commitment will also find expression in their work.

6. MANAGEMENT THROUGH TEAMWORK - ENCOURAGING TEAM SPIRIT

A large part of our upbringing and education is learning to compete with one another and be better than the next. Some people maintain this competitive spirit in every situation - they always want to be first and they always have to have the last word in every discussion.

Although they want to make a success of their career, these kinds of people often create problems in a group situation. They lack one important behavioural trait - the experience of not only working against other people, but also working with others towards a common goal. They are used to living as individual competitors. In a functioning group, everyone must contribute in order to attain a common goal. The individual competitor must hold back for this to be achieved.

THE IMPORTANT OF TEAMWORK

Psychologists define a group as something in which several people relate to each other for a certain amount of time. It is possible for the group to perform common functions - reciprocal role relations are created and a sense of togetherness (the "we-feeling") is established.

Group affiliation is defined as the average strength of attraction a group has for its members (psychologists speak of group coherence). The size of the group is important for group coherence - cohesion and team spirit is greater in small groups than in large groups. The cohesion of a group is perceived as a common fate. This creates a particularly intensive sense of togetherness. In highly cohesive groups, the tendency to leave the group is minimal. Psychologists call this low fluctuation.

The question is whether the productivity of a highly cohesive group increases. If this were the case, it would be possible to increase a company`s productivity by creating intensive group coherence. The results of a great many investigations, however, show that the overall group productivity will only increase when a group is suited to high productivity.

Every group member is dependent on the group. This means that if a member loses the membership of his group, he will lose advantages - advantages that he will be unable to obtain elsewhere.

Cohesion and dependency have differing effects. If there is a strong cohesion and team spirit and the group dependency is small, them members are happy to remain in the group. On the other hand, if there is little cohesion and team spirit and there is high dependency, group members will stay away, without renouncing the advantages that go with membership.

If groups have been in existence for a long time, a uniform behavioural pattern is created between its members. Psychologists call this the `group standard`. By this they mean that every group member is expected to think and act in the same way in certain situations. Every group has unwritten laws; if members violate these, they risk being excluded from the group.

What is the Productivity Behaviour of Working Groups?

If a highly cohesive `group`s standard` is high, this means that it is an effective and productive group. The phenomenon of performance restraint is also an important factor in working groups. Studies have shown that, in working groups, no member exceeded a certain productivity limit, although many members of the group were capable of attaining a higher level of performance. Employees who tried to attain a higher performance level were prevented from doing so by sanctions imposed by the group.

Another phenomenon is problem solving. If a problem has to be solved by the group, several people get a chance to air their suggested solutions. However, as well as the problem to be solved, another task presents itself - the co-ordination and leadership of the group. Again, it has been shown that problems can be dealt with more effectively in small groups. The process if solving the problem is encouraged by co-operation. If a sense of competition is prevalent amongst group members, group cohesion and group productivity suffer.

Are Groups More Prepared To Take Risks When Decision-making Than Individuals?

Most studies have found that they are. Psychologists call this the `risk-pooling phenomenon` which offers opportunities but which also involves dangers. The consequences of bad decision-making are divided between many heads in a group. This can lead to the `delegation of responsibility`, i.e. no one person is solely responsible.

APPLICATION IN SALES MANAGEMENT

Modern team development programmes take both the current work situation and the scientifically researched process of group dynamics into consideration. Working in a team extends an individual`s area of responsibility, motivates the employee and helps to develop his productive potential. Co-operative teams help to increase job satisfaction. Discussions become more productive and a company spirit is created.

If you want to establish a sales force which increases the employees` job satisfaction, as well as their performance, take the following measures:

> When sales representatives come to you with suggestions, you should not just say, "Okay. You can do it that way". Instead, say, "Why don`t you discuss that with Steve?" If you react in this way, the employees will, in the long term, end up initially asking each other for advice.

> Encourage your employees to work together and supervise each other`s work. For example, you could ask two employees who are working on different offers or sales promotion campaigns to inform each other of their progress. This acknowledges both of them, as you are conferring responsibility on them both and give them to understand, "You can do that amongst yourselves. I trust your judgement".

> Establish employee committees to deal with problem solving, for example, how to speed up order completion? The chairman of the committee will be on a rotating basis. Committee decisions are binding.

> You sit in on a few meetings, but do not take control of the proceedings. Instead, play a consultative role, ready to offer advice if needs be. Do not forget to praise the team when they produce good team-work.
> When away on holiday or on business, give your employees an additional chance to prove their worth. For example, transfer responsibility for enquiries from large-scale clients, which you normally deal with yourself, to the employee who specialises in offers. He can consult colleagues if there are any difficulties. Encourage a sense of initiative.

Several managerial goals are better achieved in group discussions than individual meetings.

Praise and criticism have a more lasting effect on an employee if he hears this in a group situation. If you want to emphasise a particular employee`s performance, praise him in front of his colleagues. Be careful, however, when directing criticism towards a particular employee in a group situation. Being criticised in front of others can destroy an employee`s self-esteem. `Public executions` can also have a negative effect on those not being criticised, as they fear that the same could happen to them one day.

Now and again sales force members baulk at the thought of learning anything from their superior. They are far more willing to learn something from one of their colleagues. Instead of presenting business management arguments for price rises in person, ask one of the sales representatives who is convinced of the need to raise prices to deliver the information.

Groups have unwritten laws. The standards of a motivated group of sales representatives are a positive attitude towards the company and the products it sells, constructive co-operation, collaboration and commitment. An educative process also takes place within the group, over and above the unwritten laws. Thus, any transgression on the part of one of the salespeople is normally dealt with by the group, rather than having to resort to disciplinary measures.

Team-work creates identification. Group situations are suitable for creating and conveying a sense of togetherness. They offer the opportunity to `re-charge one`s emotional batteries.

> Make sure that the teams are not too large (a maximum of 4 to 6 people). There is a danger of a drop in productivity in large groups.

> Monitor the performance of highly cohesive groups of salespeople. Not every highly cohesive group produces its maximum productivity potential.

> Monitor the teams` standards occasionally. Prevent the formation of cliques by creating new, effective teams in good time!

7. MANAGEMENT BY MOTIVATION - ENCOURAGE THE EMPLOYEES TO BELIEVE IN THEMSELVES

Some people are never happy. They are always complaining about something - work is getting on top of them, they don`t have enough time to spend with their family or they worry about their health. We tend to lend these people a sympathetic ear and give them advice such as, "Organise your work so that you can take a holiday", but nothing changes. What are the motives behind the complaining if no visible effort is made to act on your well-meant advice? Are their circumstances really so lamentable, or are these people only after sympathy?

The question of the motivation, the inner motives of human actions, comes to the fore in particular, when we are dealing with problems. Ordinary, everyday life provides us with numerous opportunities to ask about and explore the various facets of human nature.

Why, for example, do we place so much emphasis on appreciation and praise, even when it entails no financial gain? Why is it not enough for us to have enough to eat and a secure job? Why do we prefer working with some colleagues more than with others? Psychology has been studying these and other questions for a long time. Psychologists are trying to answer these questions by discovering the diversity of motives and attempting to place them in some sort of pattern.

To confirm the results, Hall asked the managers` employees what return service they particularly valued. The employees named precisely those needs that their managers had used for motivation purposes. Employees of managers who had risen to that position slowly were particularly interested in high salaries and good working conditions. The employees of the successful managers wanted freedom of expression in the workplace and additional possibilities to participate in the workings of the company.

Hall called this phenomenon the `Pygmalion Effect`. The manager`s motivation technique produces the employees` motivation in accordance with this motto:

"Every manager has the employees he deserves".

It is a circle of `cause and effect`. Employees, who are interested in the work themselves, who try to develop their own potential through this work and who are seeking success from the work, achieve more than the employees who only work for the money and are, therefore, only doing the requisite minimum.

A manager`s style of motivation establishes the productivity level of his employees and this, in turn, determines the manager`s prospects of promotion.

THE HIERARCHY OF NEEDS

Maslow`s hierarchy of needs forms the basis of Jay Hall`s investigation. Maslow speaks of six classes of needs, drawing an initial distinction between deficiency and growth needs.

Deficiency needs are denoted by the fact that their non-fulfilment provokes illness and disturbances. Maslow divides deficiency needs into five categories: the first category includes physiological needs such as hunger, thirst, breath, sleep, etc. They are the basis of the needs pyramid and are followed by safety and security needs such as protection, provision and freedom from fear and anxiety. The next category contains social or esteem needs such as the need for contact, love and a sense of belonging. The next category represents personal needs (self realisation needs) - including the need for acceptance, status, prestige and respect. The penultimate category is the need for knowledge and understanding.

Aesthetic needs such as a need for self-development form the top of the pyramid. This section of a pyramid falls into the growth category. Maslow also describes needs as human desire for self fulfilment and the need to fulfil one`s own potential.

If we apply this hierarchy of needs to the situation in which managers find themselves, it is clear that a manager can influence some of his employees` motives, although there are some that he can quite clearly not influence, as they are private, rather than business-related.

Remuneration and working conditions, for example, are important for the fulfilment of basic needs. Confidence in the future of the company and in job security are just two security motives. Team cohesion is a social motive and the conferring of titles can be a useful strengthening of personal motive. Incentives such as delegate, further training and job enrichment are useful in regards to the need to develop one`s potential.

Science also distinguishes between extrinsic and intrinsic motives. Extrinsic work motives are not satisfied by the contents of one`s actual work itself, but by the attendant circumstances, such as the money that goes with the work. Intrinsic motives are satisfied by the work itself. A manager should, therefore, structure his employees` work in such a way that they derive as much intrinsic motive satisfaction from it as possible.

HERZBERG`S HYGIENE THEORY - "WORK AND NATURE OF MAN".

Hertzberg distinguishes between two types of company motivation measures. The first type reduces dissatisfaction (hygiene factors) and the second caters for increasing satisfaction (motivating factors). Hygiene factors satisfy extrinsic motives and motivating factors satisfy intrinsic factors.

The hygiene factors prevent the development of negative conditions and hence dissatisfaction. However, they do not necessarily automatically induce a greater degree of satisfaction. On the other hand, the satisfaction of the human desire for growth is fulfilled by the motivating factors.

APPLICATION IN SALES MANAGEMENT

Psychological studies of the structure of employee motivation show that:

1. Sales representatives derive great job satisfaction from contact with
their superiors.

2. Salary plays an above-average role in the lives of salespeople.

3. After a successful sale, salespeople need immediate feedback i.e. they
want appreciation of and praise for sales success as promptly as possible.

4. Sales representatives have a marked desire for change and contact.

Consequently, it would be a very good idea to follow this advice.

> Reward your salespeople according to their performance. The system of reward must afford opportunities of rewarding above-average performances accordingly.

> Sales representatives often conceal a feeling of dissatisfaction about their status. To compensate for this, offer them status symbols, such as promotion, contact with the management, company cars and titles.

> Think of Herzberg`s hygiene factors: a pay rise of an increase in expenses can eliminate employees` dissatisfaction. However, you need to remember that an elimination of dissatisfaction does not automatically cause an increase in satisfaction! In other words, if you give your employees more financial incentives than necessary to eliminate dissatisfaction, you are doing little to actually improve their satisfaction.

> Satisfaction can be fostered by using motivating factors. Motivating factors lie in the work itself, in the performance achieved and in an extended area of responsibility.

> You can motivate your employees by allowing them to participate in the day-to-day running of the company. If the salespeople get the impression that they have a say in decisions affecting their jobs, their job motivation will be enhanced.

> The structure of a salesperson`s job (responsibilities, contacts, office set-up) can also influence job motivation. Convey to the salespeople the importance of the job they fulfil. If they can be convinced that their job influences the life and work of others, both inside and outside the company, their willingness to perform will increase.

> Convey a sense of autonomy to your sales force. If they feel that they are free agents and independent in the division of tasks, this will make them work harder.

> If the manager comes across as a man of integrity, this will help the employees to believe in themselves and their success.

> Bear in mind that negative behaviour on your part can de-motivate your employees. Do not, for example, de-motivate one of your sales force by withdrawing an important client from their remit, simply because you know that the latter wants to place a large order. Neither should you divide up a sales area, just because one of your salespeople is earning too much. If the employee feels that he or she is being deceived, they will be insulted. They will lose their intrinsic motivation and thereby, the joy they experiences from their work.

Course Directory

Tailored Training

Spearhead Training

Announcements

Tel: +44 (0)1608 644 144
Fax: +44 (0)1608 649 680

Testimonials

'Very personable and friendly tutor'
Z. G. - Nov 2006
Media Brokers