PERSONAL SELLING (PART- 4) EVALUATING THE PERFORMANCE OF SALES PEOPLE

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1 PERSONAL SELLING (PART- 4) EVALUATING THE PERFORMANCE OF SALES PEOPLE 1. INTRODUCTION Hello students, welcome to the series on personal selling. Today we are going to study Evaluating the performance of sales people In this we will cover Concept of evaluation, Impact of evaluation on the productivity of the sales people Basic techniques to enhance sales for the company. Employees are important for the company and they are there so as to give production or a turnover which enhances the value and the reputation of the company. Employees are the basic assets. They have a fire by which they work but if the employees are not passionate about their work it is going to affect the company s productivity. So it is very essential that we evaluate the performance of the sales people. Evaluation is a power so as to enhance the abilities of the people. According to Woodrow Wilson, You are not here merely to make a living. You are here in order to unable the world to live more amply with greater vision, with a finest spirit of hope and achievement. You are here to in which the world and you impoverish yourself if you forget the errant. So it is necessary that we must have the passion and the fire and the desire to work. Sales are not an easy job. It requires lot of commitment and loyalty in order to enhance the value for the company so as to grow up. We have to evaluate and measure the employee s performance. According to James, Evaluate what you want because you get measured by what you produced. So you have to relate people in order to their performance by which they are rated according to their abilities.

2 According to the Parker, It is our individual performances. No matter how humble are place in life may be that will in long run determine how well ordered the world may become. 2. UNDERSTANDING THE ABILITIES OF SALES PEOPLE So whatever job we have we have to enhance the ability of the people so that they can give result. Evaluation is system by which we try to build a feedback from the customers from the stake holders and from the society by which people are rated. 360 degree feedback is involved in order to rate the employees because this is the system by which all the stake holders of the society rate the people in a sustainable way. 360 degree feedback system is evaluation technique by multiple raters. This helps the sales people to understand better their abilities and add value to the organization. See this model Where the sales people have been evaluated by many managers and by many customers and stake holders. The rating and the evaluation is done by the sales manager, the team manager, the internal customers, and the external customer and by himself also.

3 So this is the estimation of the goals and the targets what you have achieved. What are the standards you have to give to the company and what are the expectations you have from yourselves. So this is the balancing in such a way that it measures the performance but then the companies do have measurement impact of the quantitative and qualitative aspects both. What is to be measured, it is not only the targets. It is the abilities and the relationships which you have with the customers are also important. What to measure is basic impact which is shown over here in this model, we have the company s sales which have to be measured and it is the industry sales we have to take into consideration. Measure the actual figures and the percent change for each of the following that is relevant for the business. This relates to the measurement by product Product category that gives you the total sales. customers trade channel market sector Volume and by value. This is the monthly accumulative year to date performance and moving to the annual date performance and this gives the total impact in order to enhance the market share for the company. So this model gives you the impact on the company sales which are a part of the industry sale. That is, what is the company s market share in comparison to the industry sales and this is the basic impact by which the performance is measure. 3. ISSUES IN EVALUATIONS OF PERFORMANCE The key issues in evaluating and controlling the sales people performance. These techniques are based on Outcome based perspective Behavior based perspective. The outcome based perspective is related to focus the measurement on the bases of the results and the targets and the sales turnover given by the sales people to the company.

4 The behavior based perspective is related to the subjective analysis of the positive behavior of the sales people. The conflicts arising in the market and the rude behavior or relationship building behavior of the people so if the relationship building behavior is positive it adds a value to the company but if you are in a conflicting situation and creating problem for a company then it is a serious issue where you have to tackle the employee. The perspectives of the sales performance evaluation relate to the monitoring of the people. It relates to the managerial directions and the abilities of the managers to control the behavior and it is a technique to evaluate the basic efforts so as to contribute to the attainment of the objectives. We have to constructible do a monitoring so as to involve strategic base to have a control over quality. The dimensions of sales people performance evaluation are shown over in this model. These dimensions relate to the behavior, results, profitability and the professional development of the sales people. If these variables and the dimensions are positive it gives positive impact to the company.

5 4. FACTORS IMPACTING THE PERFORMANCE EVALUATION The criteria for performance evaluation relates to the relationships into the market. It is the number of sales calls. It is the customer complains, the basic reports submitted in the company, the training and the letters and the awards you achieved in the company s basic performance issues. The professional development of a person relates to the abilities or the skills by which he is able to perform the job into the market. The characteristics of the sales people include the concepts like attitude, product knowledge; it is the initiative, innovativeness, the aggressiveness and the positive attitude and the ethical behavior by which he relates to himself to the clients.the criterion which is based on the results is important because here we measure the market share and the accounts which the people have in the market and the quota which he is able to achieve by his performance. Research shows that achieving results have positive impact on the behavior of the people. This increases self-confidence and association with the company. The market response framework is important for evaluation. We have shown you in this model the basic consideration which impacts the evaluation characteristics.

6 Sales person s factors that they relate to his characteristics and relates to the roles, perceptions, it is the attitude, the skill level and the motivation. The environmental factors relate to the control unit, the attractiveness of the business and the position of the company into the market. The organizational factors relate to the marketing effort and the sales management team effort. This manipulates the behavior of the sales people to give an effort in a quality to the work done in the market. This helps in planning and control which gives a behavior to give results and quality to the company. The elements which are important in assigning the duties to the people relate to the evaluation which people have achieved results for their previous task done. This relates to the concentration of business within the territory so as to achieve and crystallize the basic concepts to the real volumes of the sales. This is the size of the territory which is given to the sales people which will affect his performance. It is the difficulty of the market area. It is the complex impact of the factors which rate his performance. If the market areas are tough but still if he is giving less results then it also possible that we rate the employee in a positive way. When we take up the issues related what is the support given by the company is also important. Is company giving financial support? Is the company building relationship which is not harassing the employees? And is it possible that the supervisors who are looking after are giving the basic instructions and commands in a proper way. So assigning of roles and duties is important before you evaluate the employees. 5. IMPACT OF SALES PEOPLE ON COMPANY The criteria for performance evaluation relate to Profitability of course that is very important but still the company is impact on behavior and other subjective issues is also important.

7 Sales people have an impact on the gross profits through the specific products that they sale in the market. The sales people affect the net profits of the company. It is the basic revenue given to the company. It is the gross margins per sale, return on investment, the number of order secured and the selling expenses versus the budget given to them. So this gives you measure how well they are doing into the market. Whatever method of performance evaluation you select has to be built in such a way that it has the ability to define the characteristics related in such a way that it calculates the reliability of the employee. It is valid method, it is a standardize method, it is a practical method of measurement and it is a method by which you can compare people and it is useful method which measures the basic skills and the abilities of the people. The basic evaluation methods relate to the techniques which are performance oriented and they are related to the result oriented of the targets achieved by the company. The ranking methods which we try to select so as to rank the employees in the order of their performance relate to the performance done. These methods evaluate the individual performances and try to build merit list. This is the method which is impactful where we have the objectives setup, the objective it, management by objectives. The key issues related to the ranking method of performance evaluation relate to decision where we build merit list according to the performance. This kind of basic evaluation gives an impact of rating of the employees by which the abilities are measured of their related performance. Let s see this form by which we evaluate the people in the organization. This is the job performance appraisal form.

8 Here we have the key performance indicators then we have then we have the standards of the performance, the actual achievement of the people, the rating and comments given by the supervisors. The rating is done on the basis of the call rate call coverage it is the conversion ratio the pioneer calling distribution display sales target market share Charity profitability and complains. The overall rating is given on the scale of one to nine and then the comments.

9 The rating also relates to the skills and the competencies, the selling skills the administration skills organization communications planning decision making Time management and inter-personal relation. Again overall rating on the scale of one to nine then we have the job performance summary on the scale of one to nine and the comments by the supervisors. So this is the form by which the evaluation is done in the bases of a system where our calculation of the basic performance is done on the scale method. The subjective factors are also rated on these scales. 6. STRENGTH OF EMPLOYEES The strength of the employees related to the development areas, the strength relate to the person characteristics and the attitudes. This is the initiative, integrity, decision, adaptability, flexibility, judgment; it is the tenacity and enthusiasm, reliability, energy, motivation and the right mental attitude rating comments, overall rating given on the scale of one to nine and then the basic rating of the overall subjective factors. The potential of the employees calculated and according to this the training and development is recommended. The overall appraisal rating is always on the scale of one to nine and the basic comments by the supervisors are given in this column. This is signed by the first line manager and then again signed by the second line manager here the signs is concept where the date and the basic measurement of the rating is done and this forms gives planning concept to the organization where a change can be decided in order to build up strategic issue for the growth of the company. The change is related to the change of behavior to re-modify the employee in such a way that the skills and abilities are updated.

10 The training is important to learn a particular skill or counseling or basic coaching is given so as to enhance the abilities of the people in the market. The feedback system is important so as to build a positive relationship of exchange of information from both the sales people and the management. The stages in providing the feedback relates to the fact in the process system build up into the organization. The basic impacts where the organization problems are discussed and the feedback is taken from the sales people in a such a way that the market are analyzed. The facts you have the process you have this gives a basic acceptance to both the parties. The fact relates that the person exists and it is relevant for the sales people s functions and responsibilities to decide the roles and the basic abilities. It reduces the personal performances to basic levels where you want to enhance the abilities to that basic core area. The process relates to that the sales people needs to make changes according to their basic counseling given or the feedback system which they have achieved in the market and he can make changes according to the basic impact taken from the market and here the support is given by the mentors or by the colleagues. The understanding is involved in such a way that what is the issue or the problem which is needed to be understood in a term where you try to give responsibility associated. You have to take interest which is related to interest of ownership. The change is the interest and the commitment required and the understanding is how do we go about this change, what are the basic magnitude of change required in order to impact the situation and what the mangers will do to need this kind of basic impact to modify changes. The action which is required from the parties is when to take action? What type of action is needed and how to measure the improvement of the people involved with this impact. The basic is what are the additional help and the skills required to enhance the basic crystallization of the goal? What could be acquired in order to enhance the abilities and how we can develop people to change? The feedback styles which you get from the market or from the organization are both formal and informal.

11 The formal styles are where system of filling up forms and a system which is done on such a way that the rating is measured but the informal methods relate to the informal conversation and feedback. Here you try to judge people what is the report which is built for the people into the market. The formal kind of basic feedback is built which is planned. This is scheduled meeting with the agents and this is to set an agenda by which you measure people. This may have inputs for some parties involved. It is specific in focused. It is the data available to both the sides. The action plan is require. We have to have clear objectives; time spends, monitoring again the action plan and the periodic feedback by review of meetings. But the informal method is the opportunities you search. It is timely and very frequently. It is often the informal environment. It is the agreed agenda but you can have the issues not related to the agenda also. It is the recipient who is involved to talk is person who is not related directly to the company and he can be relaxed also. It is specific in focus, it gives a positive feedback. It raises straight forward issue. It focuses on the performance rather on personal issues. It is both, discussion and interaction. You have to develop action plan for this also. So both the basic systems to build a feedback from the market are designed in such a way that these methods put an impact in a way where the employees are committed to change. Objective commitment to change is important because this is the basic need for the employees to develop the organizational productivity. The organizations do involve and invest in these kinds of methods so as to enhance the basic relationship between the employee and the company. 7. EMPLOYEES AND TRAINING The company has to understand the employees and give the training and the basic mentorship according to the basic skills required to enhance the impact into the market. What could be the impact in order to bring out the changes? the objective commitment to change how we can bring about, what could be the stages and what could be the outcomes?

12 How do we establish repo and how do we establish it in an equal method. How do we control the content? It is how we involve in a two way communication and a discussion. It is presenting the benefits of the change to the sales people. How do we close an agreement or a commitment and how do we use the tools of communication process so as to build a questionnaire by listening, by benefit selling, negotiating principles and body languages. So these are the basic issues which you have to decide that how you are going to apply the techniques so as to bring about the change in the organization. The stages of the change related to the commitment to enhance the value for the organization relate the basic stages. First is you have to present the data, you have to state all the issues, agree into the interpretations, develop common understanding, sale benefits for the change, obtain agreement, summarize the basic issues regularly, identify the options to address the situations and evaluate the alternatives. The outcome of these efforts relates to development of agreed action plan and objectives. It ensures the action plan can be implemented by the sales person within his resources and skills limitation. It is to set review, the time spend and the benchmarks. It is to develop the progress monitoring and reporting criteria. It helps the sales people to agree and support his needs. It is the right up of the total program. So this is the systematic effort which adds value to the organization. We have to establish a system which is result oriented and which enhances the understanding of the organization so as to impact the basic discipline of the organization. Employee s discipline is important because this kind of evaluation helps the employees to match up with the standard set up by the companies. What is discipline, discipline is progressive impact which is a step-by-step program designed to correct the performance problems, it is not merely the compliance of the problems but to understand the problems.

13 According to Hogwarts Too, discipline is an immediate consistent and inter personal response to the behavior with a warning. We have to relate to the performance which is kind of basic desire to enhance impact which builds a positivity and enthusiastic ability to build up with the sales volume. The employee discipline adds up to good communication system in the organization. It has definite line of authority deciding who is at the management level and who is at the subordinate level. It is the impact which enhances the training value and it also enhances the work schedules which have to be carried in a systematic way. It creates good working conditions. The behavioral problems of the people related to their attendance, conduct and work performance are improved if discipline is inculcated through performance measurement and the evaluation techniques. It is impact which relates to the disciplinary action and the corrective measures taken in order to improve the organizational basic impact given to the terms where you increase the productivity. An employee who is not performing has to be looked after and an action has to be taken. You have to take and try to discuss an impact which could be a disciplinary plan where you try to modify and change the employee. 8. NEGATIVE PERFORMANCE Let s talk about what could be done if the performance measurement report is not positive or if the rating is very low. You have to be calm, you have to be fair, you have to be informed what the employees are doing and we have to be clear and positive about the action plan designed to change the employee. The basic counseling and the disciplinary action both have to be taken simultaneously so that we are in process where face to face communication is designed in such a way that its builds a relational mode of conversation. It is the discipline which is impacting in such a way that you penalizes the employees who are not performing and you have to build up resource impact so as to do give an impact which is positive.

14 The role of the supervisor is to balance the organizational need with the employees need so that the employees add up to the value of the organization. Sometimes employees don t perform or the evaluation is not positive because may be the employee is not in the problem but the work conditions are hindering the performance. So the causes of the failure of accomplishment at work could relate that the employee doesn t k how to perform the work or it is the lack of instructions from the management side. It could be something that is hindering of the frustration. It is the physical or the mental stress which is impacted in such a way that the organizational work conditions do give an impact at this level. The attitude of the supervisors and the attitudes of the employees both are important and if it is negative attitude or it is commitment which could not be completed by human abilities could be the cause of the failure of the employees not to perform in the work field. The consequences of failing to take actions relates to the increased work load of the employees. It could be the low morale in the company. It could be that the problems are there with the company also and it is a kind an acceptable condition which the employees do face where they try to have a behavior which is manipulated according to the acceptable norms which prevail in the industry. So sometimes it is the bad behavior of the other people which is not ethical impacts their work conditions also. So counseling is important. It is direct face to face interaction where you try to understand the employee and try to identify the problems. The purpose of counseling is to communicate the concerns for the employee. It is to communicate the cause and the impact of performance. We have to identify the avenues for improvement and improve the employee s performance. When to counsel is an important issue that is you have taken up an action where the work condition is favorable and the environment is favorable, where both the employee and the supervisor have a time and could discuss and could work in way. When to counsel this is important because you have to decide the course of action where you need situation where both the employee and the supervisors have time and they can come in a conversation. This is the acceptable condition where both are at ease.

15 The counseling process is session which you have to conduct with the employees but before the session you have to define your objectives. You have to have all the documents available. You have to review all the facts. You have to create an outline and then arrange for privacy with the employee. You have to verbally inform him that what they are going to discuss and how the action will be taken so as to change him. The counseling process involves an environment where you try to set a positive tone. You have to describe the problem in such a way that employee is at ease. Ask him and then listen, correct the situation and try to give him impact where he is understood. Try to conclude the session with a positive note. We must have positive disciplinary action where termination is not important but building is important. Change is important, remodifying of behavior is important. Positive discipline is important because this is the basic technique where you have to build environment where you try to change the employees in such a way that their behavior is modified in such a way that they have enhanced confidence and faith in the companies abilities to look after them. The employees have to be treated in such a way that they have a fair discipline process. The discipline process should not harass the employees but it should be supportive and it should give advantages to the employees. We have to guide them and we have to build them. We have to give them the directions so as to build method. Discipline of evaluation has reached to a stage where we have an interaction with the employees. The comparison methods of the traditional with the modern methods have changed. The old system of discipline was to coach and counseling and it was involving with the step where we have verbal repairmen, you have a written warning and then kind of the termination but the positive and the modernized impact is discipline without punishment. It is positive contact with the performance improvement techniques. It is formal disciplinary action and a transaction which you try to impact in such a way that the employees build up. You give reminder, reminder one and reminder two and then you make mutual decision.

16 If things are not working tell the employee to leave the organization but this decision has to respect both the parties the company has to be respected and the employee has to be respected. He has to search the job according to his ability. The performance evaluation is a method by which we rate the employee s basic ability. If the kinds of the changes are suggested they could be improved by counseling and by coaching could be improved. Training could be given but if methods do not work the company cannot bear the losses of not performing or non performing employee. We have to change the impact of building the sales people team, the team has to be solid. It has to be strong because this is the foundation for the success of the company. We have to build a team which has a vision and a mission of the companies to carry into the market. We have to have performance oriented people who understand the ethics, The ethics of being committed to duty, the ethics of performing well and the ethics of understanding the jobs in such a way that you have the product knowledge, the customer knowledge ledge and the impact to bring about a change in the market. The market is important, the trends of up growth are important and here you have to grow up with the company sales so as to enhance your personal growth. I hope the students must have understood the concept of performance evaluation, the impact of performance evaluation on the basic environment of the company and if the performance evaluation is done in a corrective way what is the impact where we try to enhance the values and the abilities of the people and how it could result the impact in a positive way. Thank you students!