Chapter 8 Motivation and reward system management

Intensity

The amount of mental and physical effort put forth by the salesperson

Direction

The extent to which an individual determines and chooses efforts focused on a particular goal

Persistence

The extent to which the goal-directed effort is put forth over time

Motivation

The force within us that activates our behavior; an unobservable phenomenon.

Compensation rewards

Are those that are given in return for acceptable performance or effort. They can include nonfinancial compensation.

Straight salary

Best suited for paying sales support personnel and sales trainees.

Two basic categories of rewards

Compensation rewards Non compensation rewards

Straight Commission: Rates

Constant Rates Progressive Rates Regressive Rates

Non-compensation rewards

Include the factors related to work situation and well being of each salesperson.

There are three terms associated with motivation that helps managers explain what they expect from their sales people

Intensity Direction Persistence

Motivation: Two types

Intrinsic Extrinsic

Reward system management

Involves the selection and use of organizational rewards to direct salespeople's behavior toward attainment of the organizational objectives.

Factors affecting salesperson motivation

Job design Interactions with others on the job Personal goals and preferences of employees Work related rewards

Types of salesforce rewards

Pay Promotion Sense of accomplishment Personal growth opportunity Recognition

Straight commission

Pay for performance

Regressive Rates

Rates that decline at some predetermined point.

Progressive Rates

Rates that increase as salespeople reach pre-specified targets

Constant Rates

Rates that remain uncharged over the pay period. Pay is linked directly to performance.

Performance bonus

Used to direct effort toward relatively short-term objectives, such as introducing new products, adding new accounts, or reducing accounts receivable. offered as cash or income equivalents.

Intrinsic

When doing the job is inherently motivating

Extrinsic

When rewards such as pay and formal recognition acts as motivators