Sales force management

3/2/99 1
Motivation
2
Discussion Questions
What is the best way to motivate a
salesforce?
How can you systematically design a
motivation system?
3
Three Major Determinants
of Motivation
Environmental conditions
The firm’s management policies
compensation
supervision
task characteristics
Personal characteristics of the salesperson
4
Motivation Session
Objectives
understand the components of motivation
through the expectancy-value model
relate management tools to components
of the expectancy-value model, to use in
influencing motivational levels
consider how management style and the
use of various “tools” influence motivation
5
Motivation Session Outline
Locus of Control and Motivation
Expectancy-Value Model of motivation

what is it?
Who cares? (implications of the model)
Glengarry Glen Ross & the impact of the
sales manager on motivation
The impact of role stress
6
Locus of Control and
Motivation
Locus:
External vs. internal attributions
Stable vs. unstable attributions
Examples:
External Stable:
External Unstable:
Internal Stable:
Internal Unstable:
7
The Expectancy-Value
model
Why are people motivated
to initiate a task
to choose a certain effort level
to persist in a task
Expectancy Principle: salespeople choose a level
of effort based on the expected payoffs of
alternative effort levels
Most popular model of motivation (at least
among sales force researchers)
8
Expectancy-Value Model in

Notation
M
j
=E
j
x V
j
where:
 M
j
=motivational drive to achieve level j of performance
(e.g. sales, number of new accounts etc.)
 E
j
=beliefs about the effort to performance linkage:
perceived chances of achieving level j of performance
given effort
 V
j
= overall subjective utility (valence or value) of
achieving level j of performance
9
Examples:
E
j
V
j
M
j
Level of Performance

80% 60 48 If j=$200,000 in sales
40% 100 40 If j=$300,000 in sales
10% 80 8 If j=$400,000 in sales
10
Valence/Value: V
j
Valence is a composite of the utility you derive
from the suboutcomes (consequences) that
accompany achieving level j of performance
These might include:
more pay, promotion, liking & respect, lack of leisure
time, personal growth
security, sense of accomplishment, recognition,
hurting personal life
Outcomes can have negative utility/valence
Obviously the list could be longer & vary across
individuals
11
V
j
=  (I
ij
x V
i
)
V
j
= expected overall utility to an individual of achieving
performance level j
I

ij
= beliefs about the performance to suboutcomes linkages: the
individuals subjective probability that achieving performance
level j would create suboutcome I (instrumentalities)
Example: 30% chance that selling $300K (performance level j)
would get one a promotion (suboutcome I)
V
i
= the utility an individual derives from suboutcome I
(e.g., a promotion) Note: this can be negative