as a whole. Explain why they’re important, what they determine, and how sales managers
apply these criteria to sales force performance evaluations.
Part B: Discuss ten (10) different purposes of an evaluation of salesperson performance
and how each purpose affects the performance evaluation process.
Communicate the expectations
It is very important to measure the performance of sales employee so that they will understand their job responsibilities, by increasing the competency. (Atkinson,2017)it is the human tendency that they don’t respect what you expect but they respect what you inspect. (MacKenzie,2014) The first way is to communicate the expectations to the salespeople that what the organization wants from them. The performance should not be measured just for punishing the team , but it will do in the way that it will recognize the performance of the employee , and helps the sales employee in a positive way , in terms of reinforcement in the behaviour.
Prediction of growth in future sales
Sales performance management cycle
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The different purposes of evaluation of salesperson performance are-
It is of utmost importance to monitor the performance of the employees and ensure that the employees are working according to the goals and objectives of the organization.
For keeping the track of the progress of the salespeople the manager has to timely evaluate the performance so that the training will be provided in the areas of lacking.
For taking the decisions regarding transfer, promotion and compensation the manager has to evaluate the performance of the salesforce so that as per the effectiveness of work the compensations and bonus will be provided to the individuals.
For determining the training and counselling needs of the individual the manager has to timely evaluate the performance so that training will be provided to those individuals who are not working according to the set standards.
The sales performance evaluation also provides a framework for the effective human resource planning, as the performance evaluation process will help the manager in knowing the demands of the human force on the basis of ineffectiveness of the existing people in sales.
It also helps in setting the standards for the next target sales by measuring the performance of the existing manpower with the set standards of the organization, and on that basis, the planning for the next target standards will be determined by the manager (Babakus,2016).
It helps in motivating the salespeople.
It also helps in enhancement of communication between the sales manager and the salesperson by knowing the inefficiency in the working and the valid reason behind it.
An effective performance evaluation process will help in enhancing the performance of the employee as the employee is aware of the fact that the working should be done according to the set targets otherwise the disciplinary action will be taken against them for their inefficiency.
Atkinson, A. A., Waterhouse, J. H., & Wells, R. B. (2017). A stakeholder approach to strategic performance measurement. Sloan management review, 38(3), 25.
Chonko, L. B., Loe, T. N., Roberts, J. A., & Tanner, J. F. (2016). Sales performance: Timing of measurement and type of measurement make a difference. Journal of Personal Selling & Sales Management, 20(1), 23-36.
Morris, M. H., Davis, D. L., Allen, J. W., Avila, R. A., & Chapman, J. (2016). Assessing the relationships among performance measures, managerial practices, and satisfaction when evaluating the salesforce: a replication and extension. Journal of Personal Selling & Sales Management, 11(3), 25-35.
Piercy, N. F., Cravens, D. W., & Morgan, N. A. (2017). Relationships between sales management control, territory design, salesforce performance and sales organization effectiveness. British Journal of Management, 10(2), 95-111.
Babakus, E., Cravens, D. W., Grant, K., Ingram, T. N., & LaForge, R. W. (2016). Investigating the relationships among sales, management control, sales territory design, salesperson performance, and sales organization effectiveness. International Journal of Research in Marketing, 13(4), 345-363.