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THE ROLE OF
MOTIVATION AND ITS EFFECT ON SALES FORCE PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The term
motivation is derived from the Latin word ‘movere’ which means to move (Baron,
Henley, McGibbon and McCarthy, 2012). Certo (2016) describes motivation as
giving people incentives that cause them to act in desired ways.
Motivation
has also been described as the process of arousing and sustaining goal-directed
behavior (Nelson, 2013). It is commonly agreed that there are two types of
motivation, namely extrinsic and intrinsic. Intrinsic motivation is that
behavior which an individual produces because of the pleasant experiences
associated with the behavior itself (Mosley, Pietri and Mosley Jnr, 2012).
They stem
from motivation that is characteristic of the job itself. Examples are
receiving positive recognition, appreciation, a sense of achievement and
meeting the challenge. According to Beer and Walton (2014), intrinsic rewards
accrue from performing the task itself, and may include the satisfaction of
accomplishment or a sense of influence. Mosley, Pietri and Mosley Jnr. (2012)
describe extrinsic motivation as the behavior performed, not for its own sake,
but for the consequences associated with it. Examples include salary, benefits
and working conditions. Extrinsic rewards come from the organization as money,
perquisites or promotions from supervisors and co-workers as recognition (Beer
and Walton, 2014).
Customers
today are increasingly demanding and increasingly informed and face a wide
range of alternatives that can meet their needs and requirements. In this
context, the success of organizations is increasingly dependent on management
and leadership of salespeople, including their motivated retention. Sales
people are the most visible representatives of companies and often the only
ones who are in direct contact with customers. Therefore, the sales force of
companies play a key role in diagnosing customer needs, developing customer
confidence, and strengthening trade relations. Motivation is a procedure that
initiates through a physiological or psychological want that stimulates a
performance that is intended at an objective. Managers need to remember that
salespeople are motivated by a mix of factors and not just from external or
internal motivators (Manion, 2005, p. 283). This gives managers the opportunity
for a worker reorganization of staff (Manion, 2005, p. 283) Rodrigues, Guerra
and Câmara (1997) point out that managers must recognize that success comes not
only from advanced technology, financial bases, and competitive positions in
the market, but also from motivated employees with the right professional
skills that contribute to performance their productivity and high productivity.
Performance is a decisive measure in the function of the sales department in an
organization. The sales force is seen and studied in two aspects: first,
assessing the behavior of the sales force in the context of achieving the goals
of the organization (behavioral performance) (Churchill (Baldauf et al., 2001),
including sales calls, bids made and customer meetings as well as the current
level of sales achieved (production performance) (Baldauf et al., 2001) and the
performance of the results that consists of the results attributable to
sellers, such as traditional sales metrics, market share, new accounts, and
other achievements (Business Week, 1994).
To compete
in today’s global markets, organizations strive to deliver their products
(physical) and services (intangible) in both an efficient and effective manner.
In service supply chain, human labour forms a significant component of the
value delivery process and physical handling of a product leads to standardized
and centralized procedures and controls in manufacturing supply chains,
(Sengupta et al 2008:1). The focus of efficiencies in service supply chains is
on management of capacity, flexibility of resources, information flows, service
performance and cash flow management. Critical factors are demand management,
customer relationship management and supplier relationship management in
manufacturing supply chains and service supply chains.
Sales force
in any company– big or small, manufacturing or service, are charged with
generating product sales from assigned customer accounts in independent
territories. However, the evolving selling environment today is much more
complex, demanding significant changes in performance metrics, goals, control
and compensation.
Employees
are motivated by a combination of both factors at any given point in time
(Riggio, 2013).
Performance
appraisal is one of the most important human resource (HR) practice, administered
in organizations by which supervisors evaluate the performance of subordinates
(Neeraj, 2014). Aguinis (2013) implies that the focus of the performance
appraisal is measuring and improving the actual performance of the employee and
also the future potential of the employee; it aims to measure what an employee
does. Performance appraisal is generally regarded as one of the most crucial
human resource management functions
(Judge and
Ferris 2013), furthermore; a competent performance appraisal and management
system is an indispensable part of an organizations human resource management
adequacies
(Guest,
1997). Employee reactions to appraisal in terms of perceived employee fairness,
accuracy, and satisfaction are important components of appraisal effectiveness
because these perceived employee reactions can motivate employees to improve
their performance (Taylor, Tracy, Renard, Harrison and Carroll 2015). That is,
performance appraisal serves as a means for providing feedback that can result
in improved performance (Tornow, 2013). Therefore, this study is focused on the
role of motivation and its effect on sales force performance.
1.2 STATEMENT OF THE PROBLEM
In a highly
competitive, global environment, organizations are constantly under pressure to
retain their workforce (Deci, 2013).
Highly skilled, reliable and experienced employees are a valuable asset
for any organization. It is evident that highly motivated employees are more
likely to have high productivity. However, according to Certo (2006), good
performance is not as a result of motivation only, but also includes ability
i.e. skills, equipment, supplies and time.
Some
organizations have been known to experience a high staff turnover despite
offering above average salaries (Aguinis, 2012).
This tells
us that money is not the only way to motivate employees. Additionally,
different people are motivated by different factors. It is important for
managers and supervisors to understand what motivates individual employees, and
not assume a one-size-fits-all approach
(George and
Jones, 2013). An organization is only as strong as its workforce.
Human
resources need to be treated with great care, since they are a special resource
that needs to be given special managerial attention and time (Storey, 2013).
Therefore, studies like this are an invaluable resource in helping
organizations identify and maximize on ways to motivate employees whilst
mitigating employee turnover and under-performance (Steers and Porter, 2011).
It is the human resource amongst other factors of production in the
organization which really makes a distinction (Kreitner and Kinicki, 2013).
Production is considered as satisfactory when gross commission brought in by an
agent is high. It is human capability and commitment which ultimately
differentiate successful organizations from those that fail (Deci, 2013).
These
problems necessitates the need to carry out a study on the role of motivation
and its effect on sales force performance.
1.3 OBJECTIVES OF THE STUDY
The general
objective of the study is to examine the role of motivation and its effect on
sales force performance. The specific objectives of this study include the
following:
1. To determine the prevalence of sales force
motivation in Nestle PLC.
2. To investigate the intrinsic and extrinsic
factors that best explain the level of motivation of sales teams.
3. To examine if motivation influence
behavioral performance of the sales forces in Nestle PLC.
4. To ascertain the influence of motivation
on the job satisfaction of the sales forces in Nestle PLC.
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