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Sales Management-Chapter 13

This chapter discusses evaluating sales force performance. It covers deciding on criteria like outcomes, behaviors, and ratings; conducting formal performance reviews; comparing individual versus team performance; measuring actual performance against standards; and considering external factors like frequency and legal issues. The objectives are to evaluate sales personnel, understand individual and team evaluations, compare actual and standard performance, and examine factors managers consider.

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furqaan tahir
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102 views9 pages

Sales Management-Chapter 13

This chapter discusses evaluating sales force performance. It covers deciding on criteria like outcomes, behaviors, and ratings; conducting formal performance reviews; comparing individual versus team performance; measuring actual performance against standards; and considering external factors like frequency and legal issues. The objectives are to evaluate sales personnel, understand individual and team evaluations, compare actual and standard performance, and examine factors managers consider.

Uploaded by

furqaan tahir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Sales Management

Chapter 13
Chapter 13

Evaluation of the Sales


Force
Learning Objectives
• Evaluate the performance of sales personnel and examine the
criteria used for evaluation
• Understand the difference between team and individual
evaluation
• Compare the actual performance with standard performance
• Examine the factors that a sales manager considers for evaluating
the performance of a salesperson
Sales force performance appraisal process
Deciding on the criteria for measuring
performance

Deciding in the conduct of the


performance appraisal

Deciding on the evaluation of


individuals and teams

Comparison of actual performance with


standards

Deciding on the frequency of the


performance appraisal

The external variables and their


influences
Sales force performance appraisal process
• Appraisal criteria
• Relative and absolute judgements
• Trait-based
• Outcome-based
• Behaviour-based
• Performance rating
• Force choice scales
• Behavioural observation scales
• Call reports
• Silent call monitoring scores
• Activity reports
• Combinational methods
Conduct of Performance Appraisal
Formal Performance Development Review
• Biases
• Base rate information
• Availability heuristic (thumb rule)
• Anchoring (using a Likert scale)
• Hindsight bias (taking sales person’s information upright)
• Regression effects (slowing performance continuously)
• Fundamental attribution error (judgmental error)
Conduct of Performance Appraisal
Position Developing a new business Servicing existing customers
Key account manager
Regional sales manager
Application engineer
Customer service staff
Technical support staff
Installation and quality
engineer

Financial Staff
Conduct of Performance Appraisal
Individual versus Team Appraisal
• The appraisal systems are developed to evaluate the
contribution of each member of the sales force towards
organizational objectives

Actual Performance
• Data on the ranked employee is taken and compared to
averages or to the organizational norms
Conduct of Performance Appraisal
Frequency
• Mostly annual
• Sometimes quarterly or half-yearly

Influence of External Variables


• Legal and ethical issues involved in evaluation, for example,
employee reorientation, training, termination of
underperforming employees, etc.

Barriers

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