Evaluating and Controlling Performance of Sales Force

PRESENTED BY –

PRATEEK AGARWAL (49)

PRATEEK VIDYARTHY (50)

PRIYA KUSHWAH (51)

R HARISH BABU (52)

RAHUL KUMAR (53)

RAHUL VYAS (54)

RASHID NAYYAR (55)

EVALUATING AND CONTROLLING PERFORMANCE OF SALES FORCE

WHAT IS SALES FORCE? The division of a business that is responsible for

selling products or services.

Persons responsible for selling products or services via direct contact with the customer.

The basic objective of the performance

evaluation of salespersons is to determine

how these salespersons have performed.

The outcome of sales force performance

review can be used for other sales force

management purpose like –

To improve the salesperson’s performance by identifying the cause of unsatisfactory performance.

To decide the increment in pay and incentives payment based on the actual performance of the salesperson.

Purpose of Sales force Performance Evaluation and Control

To identify the salespeople who may be promoted.To determine the training needs of the individual

salesperson and the entire sales force.To identify the salespersons whose services may be

terminated, after giving adequate chances for improvement.

To motivate salespeople through adequate recognition and reward for good performance.

To find out their strengths and weaknesses.

The salesperson’s performance appraisal should be carefully developed and implemented in order to make available different types of information that are needed for several purposes mentioned above.

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Procedure for Evaluating and Controlling Sales force Performance

Step 3

Step 1

Step 5

Several studies have generated information on general Policies followed by most sales organiza-tions. Some of these are as follows :

Frequency of evaluation.

Who conducts evaluation?

Management by objectives.

Sources of information.

Set policies on performanceevaluation and control :-

Before deciding on bases or criteria for performance evaluation of salespeople, a sales organization should decide whether it will give importance to :

Outcome/result-based viewpoint.

Behavior/activity/effort-based viewpoint.

Both outcome-based and behavior –based viewpoint s.

Decide the bases of salespeople’sperformance evaluation :-

Performance standards are generally called sales quotas.Some companies call them as sales objectives, sales goals, or sales targets. Setting performance standards is a difficult, but an important task.

Sales managers must ensure that

performance standards are fair and reasonable. They should not be too high or too low.

After the standards of performance are established, it is equally important to communicate the same to the salespeople.

Establish performance standards :-

In this step, the individual salesperson’s actualperformance is measured and then compared with thepredetermined performance standards. Sales managers can use different methods for

measuringthe performance of salespeople. For this, various types ofrating forms or evaluation methods are used – Performance evaluation methods : 1) graphic rating scale. 2) ranking.

Compare actual performance with thestandards :-

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3) behaviorally anchored rating scale (BARS).

4) management by objectives (MBO).

5) descriptive statements.

The following guidelines are useful when reviewing,

performance –First performance criteria or bases should be

discussed.

Review performance evaluation with salespersons :-

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The sales person should be asked to review his or her own performance.

The sales manager should present his view on salesperson’s review performance.

Mutual agreement on the performance must be established.

Identify the problems areas.

Find causes.

Decide sales management action.

Decide sales management actions and control :-