Motivation

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Motivation

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Discussion Questions What is the best way to motivate a salesforce? How can you systematically design a motivation system? Tree MAjor Determinants of Motivation Environment conditions, the firm's management policies: com pensation, supervision, task characteristics. Personal characteristics of the salesperson

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  1. Motivation 1
  2. Discussion Questions What is the best way to motivate a salesforce? How can you systematically design a motivation system? 2
  3. Three Major Determinants of Motivation Environmental conditions The firm’s management policies compensation supervision task characteristics Personal characteristics of the salesperson 3
  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 4
  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 5
  6. Locus of Control and Motivation Locus: External vs. internal attributions Stable vs. unstable attributions Examples: External Stable: External Unstable: Internal Stable: Internal Unstable: 6
  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) 7
  8. Expectancy-Value Model in Notation Mj=Ej x Vj where: Mj=motivational drive to achieve level j of performance (e.g. sales, number of new accounts etc.) Ej =beliefs about the effort to performance linkage: perceived chances of achieving level j of performance given effort Vj = overall subjective utility (valence or value) of achieving level j of performance 8
  9. Examples: Ej Vj Mj 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 9
  10. Valence/Value: Vj 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 10
  11. Vj= Σ (Iij x Vi) Vj = expected overall utility to an individual of achieving performance level j Iij = 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) Vi = the utility an individual derives from suboutcome I (e.g., a promotion) Note: this can be negative 11
  12. That’s nice, but who cares? Nobody thinks like this (it’s too complicated) But model holds up well in field testing (good “as if” model) Explains up to 40% of variance in performance 12
  13. Expectancy-Value Model Advantages Model is a handy way to structure a messy question Forces you to project o each individual’s underlying beliefs (expectancies) and needs/wants (values) Different people can exhibit the same level of motivation for very different reasons Nice vocabulary to talk about motivation 13
  14. Implications for How to Motivate No reward is motivating if it is out of reach (low expectancy) Raising the goal (performance level j) often depresses motivation Introduces negative outcomes Depresses expectancies Can motivate by trying to induce sales people to: raise expectancy (I.e. through training, encouragement) consider a negative suboutcome unlikely consider a positive suboutcome likely Add a new positive suboutcome Change their ideas about whether suboutcomes are desirable or undesirable (vi: doomed strategy for the most part) 14
  15. Glengarry Glen Ross what is the impact of management style on the components of the expectancy value model? What motivational “tools” are used? How do these tools impact motivation in the short-term? Over the long term? How do these tools impact extrinsic motivations? Intrinsic motivation? 15
  16. Motivators Positive Motivators Negative Motivators Commission Fear Recognition Intimidation Acceptance Revenge Respect Obligation Trust Social Comparison Achievement (one-up) Pride 16
  17. Sales Manager Objectives & Tools Objectives: Increase magnitude and accuracy of expectancies Increase accuracy of instrumentalities Understand and work with valences Key: reduce role stress arising from role ambiguity & role conflict Tools: training: expectancies evaluations, reviews: expectancies, instrumentalities communication, participation: instrumentalities selection: hire SP whose Vi’s match company suboutcomes 17
  18. How to Motivate Define each employee’s motivating factors and provide an environment that incorporates those factors Praise performance Address poor performance Set goals & clearly communicate expectations Share your vision and include your team in creating it 18
  19. Measuring Components of the Model May be done informally for small sales forces, but beware of biases (e.g. we believe what we want to believe; we think everyone else is like we are) periodic surveys can be conducted to quantify each component of the model expectancies: to what extent do you believe that if you do x, y will happen instrumentalities: to what extent do you believe that if y happens, you’ll receive z valences for suboutcomes: how important is .. Quantified information is valuable at both the aggregate level and the individual level 19
  20. Role Stress “A primary influence on how salespeople perform is their perceptions of the demands placed upon them” “A role is a prescription: it tells you the activities and behavior that are expected of anyone in a position Role partners communicate expectations pressure salespeople to meet them A role partner is anyone with a vested interest in how a salesperson does the job, such as: the boss, the customers, other executives, other salespeople and support people, people who are significant in the sales rep’s personal life 20
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