Which is more effective? Behavioural Or Performance Management Styles

A small number of organisations are managed on a purely performance-oriented or behaviour-oriented basis. Generally in company sales management and sales assessment systems, only one form of management predominates. This preconception has a major influence over the way sales training is delivered within these organisations.

Behaviour-oriented management systems require a more concentrated observation of sales people by their sales managers and a larger number of subjective evaluation criteria. This system is usually linked with a high fixed salary share.

Performance or result-oriented management systems are characterised by simple and objective assessment criteria (e.g. income attained or cover contribution). It is therefore less work-intensive for sales managers and usually has a comparatively high, variable fixed salary share.

Advocates of the “soft” behaviour-oriented management style always maintain that this style of management leads to:

Increased competence.
Increased team orientation.
Increased sense of responsibility.
Increased levels individual motivation.
Improved planning levels.
Increased client orientation.

144 companies surveyed sought to establish whether these characteristics corresponded in reality. The following interesting results were discovered:

A behaviour-oriented management system does undeniably encourage increased competence and teamwork.

Only a weak link was found between this style of management and an increased sense of responsibility, as well as increased self-motivation on the part of the sales people. However, there was a distinct improvement, on the other hand, in planning and client orientation.

The popular view that a behaviour-oriented management system has a positive effect on the performance of salespeople could, however, not be confirmed.

As expected, there is a clear influence on the sales skills of salespeople: those who are under a behaviour-oriented style of management make better presentations and are more skilful at concluding sales negotiations.

How do both management systems affect sales peoples’ performance?

Sales people under a behaviour-oriented style of management accomplish their goals more often than their counterparts who are under a performance-oriented style of management. According to academics, this is attributable to their greater competence and presentation skills due to a higher level of input in regard to their behaviour such as sales training.

In general, there is the following important interrelationship:

A performance-related style of management certainly leads to a direct improvement of measurable results (turnover, cover contribution), but does not induce increased competence and sales skills like the behaviour-oriented style of management.

Behaviour-oriented management, on the other hand, has no direct effect on measurable results.

The direct influence it has over the overall result, by virtue of the greater competence and greater sales skills it induces, is at the end of the day more effective than the direct management of results brought about by a performance-oriented managerial style.

To put this in casual terms, salespeople under a performance-oriented style of    management certainly chase turnovers more intensively, but that, as a result of their lack of expertise and sales skills they are less able than their counterparts under a behaviour-oriented management style.

A management style, which is excessively performance-oriented, is therefore not only less efficient, but in certain cases it can also be more expensive than a behaviour-oriented style of management. This is particularly true during a recession, when it is far more important to nurture existing clients than go on a “hard selling” offensive.

As a sales manager, less emphasis should be placed on turnover lists and you should be accompanying your salespeople on field visits in order to assess and to give them one to one sales training. This certainly entails a lot more work for you but is more effective for your sales success rate at the end of the day!

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