Low level of salesperson competencies ai east saigon branch of vietinbank, ho chi minh city, viet nam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Cao My Anh
LOW LEVEL OF SALESPERSON COMPETENCIES AT EAST
SAIGON BRANCH OF VIETINBANK, HO CHI MINH CITY,
VIET NAM

ID: 22 13 00 03

MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Dr. LE NHAT HANH

Ho Chi Minh City – Year 2016


Table of Contents
CHAPTER 1: PROBLEM IDENTICATION ............................................................
1.1

Company background ..........................................

1.2

Background of problem ........................................

1.2.1Symptom of business problem

1.2.2Possible problem .....................
1.3

Problem justification ............................................

1.3.1Problem definition ..................

1.3.2Justify the existence ................

1.3.3Justify the importance ...........
1.4

Potential causes .....................................................

1.5

Causes validation ..................................................

CHAPTER 2: ALTERNATIVE SOLUTIONS........................................................
2.1 Alternative solutions .........................................................................................

2.1.1Organizational policy ............

2.1.2Reward system .......................

2.1.3Training program ..................
Table 2.2: Comparison among possible solutions ................................................
2.2. Solution comparison.........................................................................................
CHAPTER 3: ACTION PLAN .................................................................................
Table 2.3: Financial analysis among solutions .....................................................
Table 3: Detailed implementation plan .................................................................
Conclusion ...................................................................................................................

CHAPTER 4: SUPPORTING INFORMATION ....................................................
Table 1.1: Lending interest rate (%) in ASEAN ..................................................
Table 1.2: Opening questions for management staff ...........................................
Table 1.3: Problems were indicated in VES. ........................................................
Table 1.5: Sales Competencies Questionnaire in East Saigon Branch of
VietinBank. ..............................................................................................................
Table 1.6: Standard scores ten ...............................................................................
Table 1.8: Sale competencies questionnaires in Agribank. .................................
Table 1.9: Causes were reflected in VES. .............................................................


Table 1.10: Manager Interview transcript........................................................... 46
Table 2.1: Comparison the number of agreements among solutions.................49
References.................................................................................................................. 51


LIST OF TABLES
Table 1.1: Lending interest rate (%) in ASEAN.................................................. 35
Table 1.2: Opening questions for management staff........................................... 36
Table 1.3: Problems were indicated in VES......................................................... 38
Table 1.4: Initial cause and effect map................................................................. 20
Table 1.5: Sales Competencies Questionnaire in East Saigon Branch of
VietinBank............................................................................................................. 39
Table 1.6: Standard scores ten.............................................................................. 41
Table 1.7: The final causes and effects map......................................................... 24
Table 1.8: Sale competencies questionnaires in Agribank..................................42
Table 1.9: Causes were reflected in VES.............................................................. 44
Table 1.10: Manager Interview transcript........................................................... 46
Table 2.1: Comparison the number of agreements among solutions.................49
Table 2.2: Comparison among possible solutions................................................ 27

Table 2.3: Financial analysis among solutions..................................................... 31
Table 3: Detailed implementation plan................................................................ 32


LIST OF ABBREVIATIONS
Agribank………………………Vietnam Bank for Agriculture and Rural Development
ARM………………………………………………….Associate Relationship Manager
RM……………………………………………………………….Relationship Manager
SCQ……………………………………………The Sales Competencies Questionnaire
VES………………………………………………........VietinBank East Saigon branch
VietinBank …………..Vietnam Joint Stock Commercial Bank for Industry and Trade


Executive summary
East Saigon Branch plays a significant role in sale performance and
development activity in VietinBank. Nevertheless, the low level of salesperson
competences in Marketing Department is affecting to employees and operation in
branch. Moreover, this issue will bring the potential sequences in VES as this problem
has existed for next years. Especially, the company has faced to decreasing income
and high turnover rate.
The main purpose of this thesis is to suggest the solutions to enhance the level of
salesperson skills in Marketing Department in VES. In order that we could find out the
best solution, we have to make step by step from the analysis to the illustration.
They contain collecting symptoms, analysing problem, identify potential causes which is
training programme, organizational climate, product knowledge, etc. They are discovered
from the textbook. Additionally, depended on the root cause of the problem, the probable
strategies to improve the level of salesperson competencies in the transactions also are
found out. From the possible strategies such as updating organizational procedures,
adjusting reward system, and improving training program, the efficient key to a difficulty
will be built and recommend to VES. Nonetheless, the best answer is to be adjusting

training program. Because that solution is the most economical and most profitable in the
future. Actually, the profit is VND 1,025 million while the expense is VND 200 million
(Table 2.3). The cost of two remain solutions is VND 800 million and VND 1000 million
respectively. Meanwhile, the profit is merely VND 200 million and VND 20 million
respectively. In order to handle training course, the bank should carry out implementation
plan in chapter 3. Because this action plan use willing resources such as trainers who is
the experience employees


in sale performance and study place where is the meeting room in the bank? It brings
benefit and convenience for both employees and company. Furthermore, the
recommendations have to be tested for the purpose of ensuring the most suitable for
the branch and all the employees. The thesis use the qualitative method which is face
to face the interview of 5 managers and 53 staffs in Marketing Department. Besides
that, this thesis makes reference to the literature from the theory, textbook, and
previous academic papers in order to verify the main problem, as alternative solutions,
and as implementation plan.


Running head: LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
CHAPTER 1: PROBLEM IDENTICATION
1.1 Company background
Vietnam Joint Stock Commercial Bank for Industry and Trade is abbreviated to
VietinBank. VietinBank is one of the two banks in Vietnam to enter into the Global
500, recognizing the world’s most value banking brands in 2015 according to Brand
Finance – the world’s famous ratings agency and brand valuation consultancy firm
(Annual report 2014). For 10 consecutive years, VietinBank has been in the Top 10
National Brands and the holders of Vietnam Value Award for three straight years.
That’s why the branches of VietinBank have the advantage of brand and prestige in
the financial market. This thing is represented obviously in East Saigon branch of

VietinBank. In 1991, East Saigon branch of VietinBank was established in Thu Duc
district. The branch has 155 employees and 2 transaction offices. It is focusing
business customers due to its location on industrial zone. In addition, the scope of
operation include Fund Mobilization in the form of Term Deposits for Retail and
Corporate clients, Foreign Exchange, Guarantees, International Settlements, Letter of
Credit, Capital Markets, Money Markets, Bonds, Equity Investments, Correspondent
Banking, Internet Banking, and other innovative financial and investment services and
solutions licenced by the State Bank of Vietnam.
The thesis concentrates on the Marketing Department, which consist of over 50
employees and is divided into 5 groups. Each group has 8 members to 12 members who
is called Associate Relationship Manager. Additionally, team head is called Relationship
Manager. Associate Relationship Manager and Relationship Manager are abbreviated to
ARM and RM respectively. Furthermore, each team is responsible for a


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
customer group permanently. More specifically, each individual person is responsible
for his own customers. At the same time, they have to seek potential customers for the
company.
1.2 Background of problem
1.2.1 Symptom of business problem
For 3 consecutive years, the annual report between 2012 and 2014 of the firm describes
that the revenue decreased from 3,594 billion Vietnam Dong to 1,724 billion Vietnam
Dong. Moreover, during the period of 3 years from 2012, net income also dropped
significantly from 49.4 billion Vietnam Dong to 5.1 billion Vietnam Dong. In 2014, the
number of customers increased insignificantly around 320 customers. While planned
figure was over 800 customers. The table below will illustrate the details.

Revenue
Net income

The real number of
customers grew
The schedule
number of
customers

(Annual report 2012, 2013, 2014)


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
According to interview results with 53 staffs in Marketing Department of bank, they
disclosed many problems which had an effect on turnover and income in the branch.
Average score of listening skill and motivation merely reaches at 4.36 and 4.38
respectively (Table 1.3). They indicated that they are less developed competencies. In
point of fact, Mr Ha, as a manager in Marketing Department, she believed that
motivation provides a stimulus to encourage employee’s performance and greater
involvement in business success. Essentially, much motivation can come as
employees are encouraged to grow in their competencies through education, training,
and experience. It is an internal state that leads to the pursuit of objectives. From the
standpoint of manager, motivation is an activity carried on to get them to achieve
results. .Those problems is discussed more detailed in Section 1.2.2. Overall, the data
described ineffective performance in East Saigon branch of VietinBank. Especially,
the number of customers reduced from 2012 to 2014. What is actual cause that it is
really affect a downward trend in revenue and profit in the bank? Which methods are
handled to seek root cause?
1.2.2 Possible problem
In the current context for the Vietnamese economic and the present situation of banking
sector, association with another elements, VES copes with a several problems. They are
causes lead to decline of profitability in the bank. Following a financial crisis developed
with remarkable speed starting in the late summer of 2008, as mortgage-related

securities that had spread through the US and global financial system suddenly
collapsed in value. This crisis has undermined many of the largest financial institutions
in the US and elsewhere, as well as severely damaging a large


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
part of the world's financial system. Recently the financial crisis has been joined by a
gathering recession in the non-financial sector in the US and global economies (Kotz,
2009). In Vietnam, the real estate and securities market are freezing. Specially, the
banking industry has been influenced dramatically by the crisis. According to the
information of Ms Nguyen Thi Ngoc Han, as a manager in branch, the credit growth
decreased sharply in annual report from 2012 to 2014. By contrast, the bad debt ratio
increased significantly between 2012 and 2014 (Annual report 2012, 2013, and
2014). Furthermore, the interest rate dropped from 17% to 8.7% between 2011 and
2014 (Table 1.1). It is meaning that there were fluctuations of bank rate. That is why
the customers was not interested in borrowing in the bank. As a result, there was a
downward trend in the number of the corporate customers. Because the clients whose
bank and Thu Duc District are business customers by concentration on industry zones
there. It generates that bank profit decline significantly. In point of fact, there were 12
employees in 53 interviewees, they affirmed that this is the problem which decrease
revenue (Table 1.3).
Next, the second aspect was mentioned that there was trade competition between
alternative banks in the same area. According to Ms Vo Thi Hong Khanh, as a
manager in team 1, banking industry have occurred to merge the small banks into one
larger one. Nonetheless, the financial market also appeared the strong banks such as
ACB and BIDV. Their smooth operation and working capital provided customers with
various products and good service. Besides that, the foreign banks with high
technology of system, strong capital, and flexible transactions are supplying many
choices for customers in the market. In general, VES were facing the main challenges

LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
from these business rivals. Therefore, the necessary responsibility was set up to
improve the quality of bank service in order to rise the corporate customers. In fact,
8 individuals of 53 interviewees asserted that this is the problem lead to reduce
income in VES (Table 1.3).
Last but not least, human capital can embody intangible assets such as unique
configurations of complementary skills, and tacit knowledge, painstakingly
accumulated, of customer wants and internal processes (Bontis, 1999). Especially, sale
competencies are learned proficiency at performing tasks necessary for a sale job.
They are among the most important predictors of sales performance (Rentz, Shepherd,
Tashchian, Dabholkar, & Ladd, 2002). In fact, results from the interviews with 53
staffs and 5 managers in VES, there were 33 staffs reflect that salesperson
competencies were low level (Table 1.3). That is an important problem generates to
decline revenue. They supposed that there was not enough product knowledge and
presenting skill for consultancy with customers. The customers usually wait a long
time when they asks questions about bank services. When the salesperson
performance failure that it is difficult for the bank to maintenance the loyalty of
customers. Consequently, the net income will decline in the following days.
Overall, 33 employees of 53 interviewees can be concluded that the staffs have be low
sales competencies which is one of the big problem in VES (Table 1.3). The result
from questionnaire ‘‘which the main cause affects to decrease revenue?’’, there are 33
answers assert that there is an existing problem of VES in the recent years. That is low
level of sales competencies.
1.3 Problem justification


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
1.3.1 Problem definition
Sales competencies is a measurable characteristic of a person that is related to

success at work. This includes behavioural skills, technical skills, attributes and
attitudes (Mitchelmore, & Rowley 2010).
Johlke (2006) suggested that the skills and efforts of salesman power their
individual outcomes as well as the effectiveness of their organizations. As
acknowledged by Bashir et al. (2010), sales competencies essentially contribute to
performance. Although, competencies have been accepted as the predictors of
performance, very few empirical researches have been done to establish that these
distinct skills actually have considerable impact on performance. Selling is a
complete process in itself and is comprised of many phases. To perform well and to
deal with customers at different phases, salesman should be equipped with proficient
skills and abilities.
1.3.2 Justify the existence
The interviews and in-depth questions is used to measure the level of salesperson
competencies. There are 5 managers and 53 staffs contributed in their judgment and
emotion about their current occupation through opening questions (Table 1.2).
Additionally, there were questions refers to the scale item in order that there were
evidences and detailed measurement to justify level of sales competencies from the
employees in Marketing Department. The Sales Competencies Questionnaire
(SCQ) measures selling skills. The instrument measures 13 competency dimensions
which include communicating and presenting, listening skill, team working, self –


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
awareness, adapting and innovating, resilience and self – control, conscientiousness,
achievement motivation, prospecting, customer orientation, negotiating and
influencing, competitor awareness, and product expertise (Sale assessment, 2014).
More specifically, sale competencies questionnaires are made up 13 items. All items
are scored on 10 point rating scale ranging from 1 to 10. According to the results from
sale competencies questionnaire to determine salesperson skills, the staffs of VES
were evaluated their selling skills approximately from 2 point to 4 points which equal

level 1 and level 2 respectively (Table 1.5). On the other hand, the total average rate at
4.98 describes that there is a low level of salesperson competencies in VES (Table
1.5). Especially, product expertise is one of the worst skill of the employees. That
means that they infrequently update product knowledge. Meanwhile, the data was
collected in Sale competencies of 53 staffs in Marketing Department of Agribank
better than Vietinbank employees in Thu Duc District (Table 1.8). The figures
demonstrated that the average score was between 6.53 and 7.40 (Table 1.8). On the
other side, the total average was 7.18 in Agribank better than Vietinbank (table 1.8).
Therefore, they could not provide bank service rapidly. When the bank could not
satisfy the requirements of the customers. That thing generate to reduce the number
of the customers. At the same time, the profit will drop considerably.
Beside the sale competencies questionnaires, the opening questions is also a useful
approach to seek important information for the purpose of the survey. Mr Huu, as the
second team manager, he described that he always receive the phone calls from the
customers. They have to spend much time in order that they wait to be provided
necessary information what they have doubts how transaction process in the bank. He


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
is not satisfied about his junior staffs and expects to enhance cycle knowledge in the
branch for all employees. Alternative ideas of Ms Ngoc, as an employee in Marketing
Department. ‘‘Salesman who are more competent at giving effective sales
presentations are likely to perform at a higher level. Effort towards improving sales
presentation skills are not interest reasonably.’’
Generally, the results in the interviews indicated that there was a lack of sale
competencies. It is one of the most important problem of the staffs and on the
whole bank. Moreover, which strategies will be proposed to solve this problem?
1.3.3 Justify the importance
As mentioned by Abdolvand et al. (2013), salespeople are one of the major
contributors to a firm's survival because of their role as nexus between the firm and its

customers. Clever and well-trained individuals proficient in various soft skills and
competencies are the need of hour. From a salesman's perspective, being loaded with
the requisite competencies, not only ensures the well-rewarded performance but also
safeguards the career growth. With all the skills and proficiencies, salesman will
succeed in building better relationship with the consumers, which will ultimately lead
to the promising growth of both, the individual and the business. The study conducted
focuses on sales competencies which are majorly required by the salesperson, which
he or she may fail to perform.
An additional area of concern is the relationship between salesperson failure and
various outcomes. The specific outcomes depend upon how failure is defined,
what determinants are attributed as the cause of the failure, and who is assigned


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
responsibility for these determinants (Dubinsky, 1999). For example, if managers
define failure as an irrevocable evaluation that the continuing poor performance
cannot be improved, then termination and replacement is the likely outcome.
However, if failure is a matter of degree, then sales management attention may be
directed toward retraining, reassignment, or some other outcome that focuses on
performance improvement. To the extent that sales managers are likely to attribute the
determinants and responsibility for failure to the salesperson, then the outcomes sire
likely to focus on actions that directly affect the salesperson (e.g., punishment,
termination, etc.). This, unfortunately, will not lead to changes in sales management
practice (e.g., recruiting or selecting procedures, training programs, etc.) that might
limit future salesperson failure (Dubinsky, 1999). This type of situation is probably
prevalent and may be one of the causes for low productivity in many sales
organizations. For example, the total quality management (TQM) literature (Deming,
1986) suggests that 85% of the firm's problems are directly due to the system that
management has established. Thus, improvements require that management change
the system. However, attribution theory predicts that sales managers will not make the

changes in sales management procedures needed to reduce failure in the future. And
yet, failed salespeople who are subsequently terminated and replaced impose very
high costs on the sales organization. Turnover costs have been estimated to range
between $75,000 and $200,000 per salesperson, depending on the industry, while
surveys have indicated annual salesforce turnover rates are as high as 27% in the U.S.
(Gable, Hollon, and Dangelo 1992; Marketing Times 1990; Sales and Marketing
Management 1991).


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
1.4 Potential causes
It is extremely vital to find out the aftermath of low level of salesperson skills. Which
reasons lead to this problem? In those causes, which cause is a main cause what could
conduct or be unsolved due to limited capability of the company. On the one hand, we
clarified that there are possible causes which effect on existing problem through the
interview results in the branch. On the other hand, there are also potential causes
which influence in sale competencies in theory by the researchers all over the world.
They are motivation, emotion, organizational culture, product knowledge, listening
skill, personal goals, organizational climate, sales experience, training and
development orientation, organizational policy, and reward system. These findings are
constructed on salesperson competencies models of Walker, Churchill, and Ford
(1979), Johnston, Hair, and Boles (1989), Ingram, Schwepker, and Hutson (1992).
Besides that, those findings are also reply on results of 53 interviewees in VES, with
the questions ‘‘what are the causes of low sales competencies? Is low level of sales
competencies attributed to personal, company, or environmental factors?’’
Motivation
Motivation is one of the keys to sales performance. There is an old saying you can
take a horse to the water but you cannot force it to drink; it will drink only if it is
thirsty. They will do what they want to do or otherwise motivated to do. According to
Kleinginna and Kleinginna (1981), motivation is an internal state or condition

(sometimes described as a need, desire, or want) that serves to activate or energize
behaviour and give its direction.
Emotion
Emotions, as they impact motivation, were of interest to Badovick (1990) as he
researched salespeople with inadequate sales performance. Feelings of self-blame and
performance satisfaction directly influenced motivation but in opposite directions.
Self-blame resulted in increased effort intentions to make the quota next month. The
findings relating to performance satisfaction appeared counterintuitive. Feelings of
performance satisfaction resulted in a decrease in future intentions to expend more
effort, even when the quota had not been met. Badovick theorized that when


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
salespersons were generally satisfied with their performance they may have been
ahead of quota for the year-to-date, and not making quota for that month was
insignificant to their ultimate goal attainment.
Organizational culture
Organisational culture is believed to impact motivation and ultimately performance.
For instance, Skinner (2000) reported that 44% of workers interviewed claimed that
they did not put forth effort above what was required to keep their job. He cited
examples of workers going above and beyond their duties to use discretionary effort to
achieve peak performance. He defined discretionary effort as being that portion of an
employee’s performance over which he or she has the greatest control. This effort is
not necessarily controlled by incentives or bonuses. The organisation can create an
environment that unleashes discretionary effort. The culture strives to create a climate
where employees transcend their own self-interests for the good of the organisation.
Product expertise
Product knowledge is an essential sales skill. Understanding your products' features
allows you to present their benefits accurately and persuasively. Customers respond to
enthusiastic sales staff who are passionate about their products and eager to share the

benefits with them. Customers are more likely to trust sales people who show
confidence in themselves and what they are selling. You can build this confidence by
increasing your knowledge of your products or services. Moreover, successful
salespeople know all of their product of features and skillfully turn these features into
benefits for their customers. Overall, product knowledge has been defined either in
terms what people perceive they allow them to relate extrinsic information to product
quality (Rao & Monroe, 1988).
Listening skill
Salesperson listening has been defined as the cognitive process of actively sensing,
interpreting, evaluating, and the responding to the verbal and nonverbal messages of


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
present or potential customers (Castleberry and Shepherd, 1993). Effective listening
goes beyond merely hearing what the other person is saying to actually getting the
meaning of what is being said. As Digaetani (1980) indicates that it requires serious
attention and critical hearing, both concentration and penetration, both memory and
knowledge. Listening acquires salespeople to fully attend to, comprehend, and
respond to each individual client.
Personal goals
In human control systems, feedback involves much more than the mechanical sensing
of the environment, goals are not predetermined inflexible standards, and there are
several alternatives for reducing discrepancies (Lord & Hanges, 1987). As a result,
control theory can represent a very flexible, no mechanical view of behavior (Lord &
Hanges, 1987). Although human control systems are more complex, they do operate
in the same basic way—utilizing feedback to ensure the attainment of goals. Consider,
for example, a salesperson who has accepted a quarterly sales quota as a personal goal
(the standard). The input function would be information the salesperson perceives
about his or her current sales performance. When this information is compared to the
standard, the salesperson forms a perception of how well he or she is meeting the

quota. If this comparison reveals a discrepancy, the salesperson will take some
corrective action, possibly increasing the number of new contacts.
Organizational climate
In organizations where the climate is considered highly competitive, salespeople’s
self-set goals are influenced. A study by Brown et al. (1998) examined the goalsetting tendencies of salespeople with high competitiveness traits. Where salespeople


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
perceived a competitive environment, those scoring a high competitiveness trait set
higher, more ambitious goals than those with low competitiveness. More ambitious
goals equated with better performance. They concluded that hiring more competitive
salespeople and fostering a more competitive environment would result in more
effective goal setting and better performance.
Sale experience
Sales experience refers to a length of sale activity or work occupation in selling
(Matsuo and Kusami, 2009). As salespersons gain more and varied sales experiences,
salesperson improves their skills and develops more complex knowledge of selling
situations, customer types, and selling strategies (Spiro and Weitz 1990). The study of
Giacobbe et al. (2006) asserts that selling experience affects sales adaptation.
Following the prior research, Matsuo and Kusumi (2002) provide that experience of
salesperson helps to increase knowledge and skills for behavior salesperson
effectiveness. Likewise, sales experience enhances salesperson's knowledge and skills
in selling strategy that lead to a better ability to understand the customer's situation.
Furthermore, the role of sales experience enhances higher technical knowledge and
skills which is positive impact on sales effectiveness (Baldauf and Cravens, 2002).
The study of Johlke (2006) confirms that sales experience is seen as primary effective
antecedents of adaptive selling and sales knowledge & skills.
Training and development orientation
Training and development orientation refers to the intent to make changes or improve
individuals' learning, behavior, work performance, attitudes and cognitive skills

(Haslinda and Hiok, 2009). Much of the literature appears to be hypothesized that


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
training and development will enhance learning and performance. According to
Torraco and Swanson (1995) and Tseng and McLean (2008), human resource
development is vital for firm strategy that leads towards superior performance, higher
creativity and innovation, retaining, staff, and better service. Training involves the
development of learning and education activities designed to improve the overall
competence of an employee. Therefore at its most basic, HRD increases workforce
competence, skills development and quality, motivation, commitment and
development of the organization (Omar et al., 2009). It seems that training and
development plays a very vital role in the employee as well as organizational
performance (Khan, et al., 2011). Previous studies describe that salesperson who
always train and develop sales practices can enhance salesperson capability such as
consultative selling practices, ability to be an excellent negotiator, skill in probing and
questioning customer needs, and possessing commendable communication skills
either verbal or nonverbal (Cron et al., 2005). Following the literature of Sujan et al.
(1994), learning orientation serve to develop knowledge of sale situation and utilize in
effective selling behavior.
Organizational policies
Organizational policies, procedure, structures, and systems decide the extent to which
employee is engaged in an organization (Anitha, 2014). More importantly,
organizational procedure is designed to control the activities of the organization
members (Ouchi, 1977).
Reward systems


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
Employee reward systems refer to programs set up by a company to reward

performance and motivate employees on individual and or group levels. They are
normally considered separate from salary but may be monetary in nature or
otherwise have a cost to the company. While previously considered the domain of
large companies, small businesses have also begun employing them as a tool to lure
top employees in a competitive job market as well as to increase employee
performance (Rauch, 2005). According to cognitive evaluation theory, the authors
show how commission compensation can be viewed as a sales performance
contingent reward and the extent of its use to reward performance, coupled with a
sales control system, impacts salesperson intrinsic motivation in a relationship
selling environment. In essence, the sales control mechanisms modify the impact of
the commission based on whether it is perceived as controlling or informative
(Mallin, & Pullins, 2009). Possible reasons in low level of salesperson competencies
could be recapitulated as the table below:
Infl
uen
ce
in
Authors

Antecedent

Definition

Correlation

VE

Interviewees
S

(Ye
s or
No)


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
Kleinginna

M

and
Kleinginna
(1981)
Badovick

E

(1990)

Skinner

O

(2000)

c

(Rao &

P

Monroe,

e

1988)


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
(Castleberry

L

and
Shepherd,
1993)
(Lord &

P

Hanges,
1987)

Brown et al.

O

(1998)

c

(Baldauf

S

and

e

Cravens,


LOW LEVEL OF SALESPERSON COMPETENCIES IN VES
2002)

(Cron et al.,

T

2005)

d

o

(Ouchi,

O

1977)

p

(Rauch,

R

2005)

A cause and effect (C&E) diagram enables you to brainstorm and categorize the
variables that might be causing poor performance in your new process, product,
service, or solution (Silverstein, Samuel, & Decarlo, 2009). According to the