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Effects of personality and perception on marketing strategies
Motivation theories for salespeople, production workers and administrative staff
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Introduction
Salespeople are often internally driven and self-motivated (Srivastava and Rangarajan, 2008), and are increasingly becoming consultants who sell value-added services (Smith and Rupp, 2003). Nowadays more industrial companies employ sales engineers (SE) and therefore they represent an emerging class of knowledge workers on sales (Darr, 2002). I will first discuss my experience in Festo, before briefly addressing some theories about motivation, related to it. Was there a mismatch between theory and business as I knew it? If so, I will try to identify it and to explain why Festo's incentives failed with me. Finally, I will suggest how Festo should have motivated its SE, based on the theory discussed.
What is a SE?
Although having studied engineering, I have mostly worked as a salesperson. Thus, I can ask: what is a SE? A salesperson with a strong technical knowledge on the field he/she is selling. Furthermore, a SE could be defined as a technical-consultant salesperson or a knowledge worker (Darr, 2002). These ideas somehow extend Lidstone's (1995) definition of a technical salesperson: someone who sells industrial products, equipment or highly engineered components, has a major emphasis is his/her technical know-how but are often worried with technical details and tends to forget his/her job is to sell.
SE at Festo
Festo Argentina had around 20 SE (2007) nationwide (from a workforce of 120), half of them farther away than 400 miles from main office. Needless to mention, every SE had a different emotional background (psychological characteristics), engineering field (industrial, electronic, mechanical), and socioeconomic situation (some married, some young and single; middle-aged, well-off, working class, etc....
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Pritchard, R. and Ashwood, E. (2008). Managing motivation: a manager’s guide to diagnosing and improving motivation. New York: Taylor & Francis Group, LLC.
Smith, A. and Rupp, W. (2003). An examination of emerging strategy and sales performance: motivation, chaotic change and organizational structure. Marketing & Intelligence Planning, 21/3, pp.156-167.
Smyth and Murphy (1969). Compensating and motivating salesmen. New York: American Management Association.
Srivastava, R. and Rangarajan, D. (2008). Understanding the salespeople’s “feedback-satisfaction” linkage: what role does job perceptions play?. Journal of Business & Industrial Marketing, 23/3, pp. 151–160.
Steers, R. and Porter, L. (1987). Motivation and work behaviour, 4th edition. New York: McGraw-Hill Inc.
Stewart, G. (1994). Successful Sales Management, 3rd edition. London: Pitman Publishing.
Latham, G. P & Pinder, C. C 2005, Work Motivation Theory and Research at the Dawn of the Twenty-First Century, Annual Review of Psychology, Vol. 56, Issue 1, pp. 485-516, viewed 8 March 2014,
A strong way to motivate a sales person is to tie their work performance directly with their compensation. For the sales organization I encourage a lower base salary with sliding scale commission structure that will drive for results targeting healthy margins. This type of sales structure is low risk for companies as compensation is directly linked to profitable sales. This Performance-Based Pay as Lam explains is also consistent with what Vroom calls the expectancy theory (2014, pg. 164). Here we understand that these extrinsic motivators of finical rewards are key drivers for sales representatives. With commissions structures clearly identified, the sales reps know what compensation they will receive ahead of time and this is what Lam (2014) identifies as incentive pay. For the sales leaders, I also recommend that the 1/3 performance reward should be linked to the sales success of the their direct teams, 1/3 should be linked to the PBIT of their department helping to control costs, and the final 1/3 should be based on the employee retention. I personally believe that all mangers should have an element of their performance rewards tied to employee retention, as this would drive better behaviours of our leaders to care, coach and train our employees for success. This type of leadership is known as transformational leadership where the leader influences, inspires, challenges, and listens to the employee. This helps to build trust and elevate both the leader and employee to a higher level of values and motivation (Lam 2014, pg.
Steers, T. M., Mowday, R. T., & Shapiro, D. L. (2004). Introduction to Special Topic Forum: The Future of Work Motivation Theory. The Academy of Management Review, 29 (3), 379-387.
Latham G.P and Pinder C.C. (2005). Work Motivation Theory and Research at the Dawn of the Twenty-First Century. Annual Review of Psychology 56.
Pardee, R. L. (1990). Motivation Theories of Maslow, Herzberg, McGregor & McClelland. A Literature Review of Selected Theories Dealing with Job Satisfaction and Motivation.
Robbins and Judge define motivation by means of three elements. The first element is defined as being the process that account for an individual’s intensity which is concerned with how hard a person tries. The second element is direction that benefits the organization and the third element is persistence which is a measure of how long a person can maintain effort. Motivation is also driven by certain situations that vary between individuals and within individuals, at different times. (Robbins & Judge, 2007, p.186) These elements should not only be expected from employees but from managers as well.
Motivation is an important concept which is critical for understanding of and improvement in organizational behaviour and performance. It is therefore important for the managers to understand motivation. It is an important tool which they can use to get more out of their employees and increase organizational performance. Motivation can be defined as the factors, both internal as well as external which arouse in individuals the desire and commitment for a job (Mele, 2005, p. 15). Organizational performance on the other hand refers to the degree to which the organizational objectives have been achieved.
Kovach KA (1987). What motivates employees? Workers and supervisors give different answers. Business Horizons, 30. 58-65. Print. 8 Feb. 2014.
Motivation is the reason or purpose behind action, or what causes one to act in a particular manner. Motivation can either be intrinsic or extrinsic in nature, yet it rests solely within the power of the individual actor to be motivated (or not) by intrinsic and extrinsic motivators. Motivation is an extremely important topic of discussion in the larger discourse on leadership. It is important because it provides the basis for human action, or inaction. Leaders must be able to understand what motivates their followers in a hope to use that knowledge to guide them to behave in a certain way that is beneficial for the organization. To do so, it behooves leaders to understand the basic concepts and theories of motivation that abound.
Latham, G. P. (2007). Work motivation: History, theory, research, and practice. Thousand Oaks: Sage Publications.
Steers, Richard M., Richard T. Mowday, and Debra L. Shapiro. "Introduction to Special Topic Forum: The Future of Work Motivation Theory." The Academy of Management Review 29.3 (2004): 379. Print.
The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that’s easier said than done! Motivation practice and theory are difficult subject, touching on several disciplines.
People’s behaviour is determined by what motivates them. The aim of this essay is to discuss the essence of the motivation and psychological strengths, its evolution, a brief overview of the key theories of the employees’ motivation and behaviour analysis. The main task is to understand how motivation affects employee behaviour and to clarify the importance of motivation. In this essay I will discuss and produce definitions and examples to answer the main question of what is the driving force and how do people’s needs influence performance at work?
Motivation is the force that transforms and uplifts people to be productive and perform in their jobs. Maximizing employee’s motivation is a necessary and vital to successfully accomplish the organization’s targets and objectives. However, this is a considerable challenge to any organizations managers, due to the complexity of motivation and the fact that, there is no ready made solution or an answer to what motivates people to work well (Mullins,2002).
Motivation is best defined as the needs, wants, and beliefs that drive an individual. It is the basis of what people work for and keeps them doing things they otherwise would never do. People act in a whole new manner when they are motivated by something. Motivation gives them a whole new perception of the task at hand. Motivation is not always positive though, and it does not always just come from one place, for example, your boss. Motivation can be negative by not receiving something, and contrary to popular belief it is not always money that motivates people to do what they do. People have different needs, wants, and desires and the finding what is most important to those individuals is the key to motivation. People and companies have used countless techniques and approaches to motivate others and employees, but what works for one person does not necessarily work for the other.