Sales Management Leadership and
Supervision
·
Salesforce
Socialization Revisited
·
Contemporary
Views of Sales Leadership
·
A Leadership
Model for Sales Management
·
Selected
Leadership Functions
·
Problems in
Leadership
·
Leadership and
Supervision
Successful sales
leadership calls for developing and implementing initiatives that facilitate
and inspire success amongst members of the Salesforce.
Leadership involves the
use of influence with other people through communication processes to attain
specific goals and objectives.
Leadership and Supervision
Even though sales managers
have a fair amount of authority by virtue of their positions in the
organizational hierarchy, it is their skill to influence rather than dictate
the actions of others that determines whether they are effective leaders.
Supervision is the day to day control of the Salesforce under
routine operating conditions. It is obviously an integral part of leadership. Supervision
is concern only with sales managers – salesperson relationship, whereas leadership
extends to all interpersonal relationships in which the sales manager is
engaged.
Furthermore, leadership
requires more foresight and intuition than supervision which is true because
supervision deals more with maintenance and improvement of the status quo
whereas leadership often requires redefinition of major objectives and
operations of the Salesforce.
Salesforce Socialization Revisited
Salesforce Socialization - is the process by which salespeople acquire the
knowledge, skills, and values essential to do their job. Through leadership,
supervision, and motivation, sales managers can further socialize the Salesforce
contributing to a strong sales culture and positive job-related outcomes.
Example: - Research has demonstrated the importance of
salespeople having high levels of job-related, task-specific self-esteem, which
has been linked to improved performance and job satisfaction.
Sales managers can
positively affect their Salesforce by reducing on-the-job conflicts and role
stress for their salespeople. Research show that by reducing stress on-the-job,
sales managers could increase not only Salespeople job satisfaction but
ultimately their organization commitment.
Understandably most sales
managers would like to have a Salesforce composed of people who are highly
committed to the organization and highly involved in the job itself.
We will look further into
how sales managers through effective leadership and supervision, can affect
overall Salesforce performance and other desirable job outcomes, such as
satisfaction, involvement and commitment on the part of their salespeople.
Contemporary Views of Sales Leadership
In recent years, sales
researchers have advanced three especially views of sales leadership:
1. Leader-Member Exchange (LMX) model
2. Transformational Leadership
3. Behavioral Self-management
Each of these views offers
useful aspects for the contemporary sales manager
Leader-Member Exchange (LMX) model – as applied in Sales Management focuses on the
salesperson-sales manager dyad as reciprocal influence process. LMX proposes
that sales managers interact uniquely with individual salespeople rather than
prescribing one style or set of behaviors to be used in standardized
situations.
Leader-Member Exchange
(LMX) model – Studies have shown that reciprocal trust between sales managers
and salespeople influences the leader-member exchange and can generate positive
job attitudes and perceptions in the Salesforce.
One study have found that
the greater the quality of exchange relationship between salesperson and sales
manager, the greater the salesperson's goal commitment and ultimately
performance.
Leader-Member Exchange (LMX) model – One appealing notion of the LMX
model is that many organization reorienting their sales processes toward more
long-term, trust based customer relationships. In organizations where this is
occurring, both sales managers and salespeople are learning the benefits of
building and earning trust; thus their motivation to engage in trust building
in the salesperson-sales manager dyad may well be present.
Transformational Leadership – Is another emerging concept of interest to sales
managers and researchers. Transformational leaders are charismatic,
inspirational and driven by a sense of mission. They provide intellectual
stimulation, often by showing employees new ways of thinking or completing
tasks. Transformational leaders act as agent for change.
Transformational Leadership – Research have confirm that sales managers
practicing transformational leadership can influence salespeople to perform above
and beyond the call of duty. Transformational leadership behaviors have strong
positive relationships not only with salespeople’s performance, but also with
organizational citizenship behavior.
Behavioral self-management (BSM) – Involves self-imposed planning, behavior,
evaluation, rewards, and punishment. Given the unique nature of the sales role,
BSM offers some advantages. Many salespeople work without constant supervision,
so self-control and self-discipline are important for success.
Individuals usually work
more enthusiastically when they have had significant input into planning and
prioritizing their work.
Behavioral self-management
– In addition sales managers who work only periodically in the field with
salespeople may not be capable of fully assessing all important behaviors.
A Leadership Model of Sales Management
— The LMX, Transformational leadership and BSM
approaches capture some of the key thoughts in contemporary sales leadership.
— Build a strong, trust based relationship with
individual salespeople. Be an active stimulus for change, and work with
salespeople and others to accomplish the mission.
— Expect the salespeople to take an active role in
managing themselves.
Putting all these
leadership approaches together can provide a leadership model with six
components of Sales Manager’s Leadership Effectiveness;
1. Power – Salesperson, Salespeople or other party with
whom sales manager is interacting.
2. Power – Sales Manager.
3. Situation – Time constrain, nature of task,
organizational history and group norms.
4. Needs - Salesperson, salespeople and others.
5. Goals and Objectives – Individual and organization.
6. Leadership Skills – Anticipation, diagnostic,
selection and matching, communication.
Power and Leadership – In most job-related interpersonal situations,
sales managers and the parties with whom they interact hold power in some form
or another. The power held by an individual in an interpersonal relationship
can be of one or more of the following five types;
1.
Expert Power
2.
Referent Power
3. Legitimate Power
4.
Reward Power
5.
Coercive Power
Expert Power – Based on belief that a person has valuable
knowledge or skills in a given area.
Referent Power – Based on the attractiveness of one party to
another. It may arise from friendship, role modeling etc.
Legitimate Power – Associated with the right to be a leader, usually
as a result of designated organizational role.
Reward Power – stem from the ability of one party to reward the
other party for designated action.
Coercive Power – Based on a belief that one party can remove
rewards and provide punishment to affect behavior.
Many sales managers have
been accused of relying too much on reward and coercive power. This is
disturbing from three reasons.
·
First – Coercive
actions are likely to create strife in the Salesforce and may encourage
turnover among high-performing salespeople who have other employment
opportunities.
·
Second – Salespeople
move through the career cycle, they tend to self-regulate the reward system.
·
Third – Other
powerbases are positively related to salespeople satisfaction with supervisor
& sales managers.
Situational Factors
Scores of studies have
tried to uncover what makes an effective leader.
Trait Approach – Attempts to determine the personality traits an
effective leader .
Behavior Approach – Seek to catalogue behavior associated with
effective leadership.
Contingency Approach – Recognizes the importance of the interaction
between situational factors and other factors.
The history, culture, and
policies of the company may also affect a particular situation and thus the
leadership action that would be most suitable.
Needs and Wants of Salespeople
If the coercive
power-based behavior is cast aside, the needs and wants of salespeople must be
given due considerations to ensure a supporting constituency for effective
sales management leadership.
In assessing the needs and
wants of salespeople, it is important to consider each salesperson as a unique
individual. Although it is true that individual salespeople are typically part
of a work group, sales managers should attempt to tailor their actions to
individual salespeople when feasible.
Goals and Objectives
In assessing the needs and
wants of salespeople, it is important to consider each salesperson as a unique
individual. Although it is true that individual salespeople are typically part
of a work group, sales managers should attempt to tailor their actions to individual
salespeople when feasible.
If salespeople’s needs and
wants are consistent with the organization’s goals and objectives, leadership
is an easier task for sales manager.
Leadership Skills
— Anticipation and Seeking Feedback.
— Diagnostic Skills.
— Selection and Matching.
— Communication.
— Influence Strategies.
— Threats, Promises, Persuasion, Relationships.
— Manipulation.
— Communication Mechanism.
Selected Leadership Functions
Three Important Leadership Functions
Coaching – Sales manager concentrates on continuous
development of salespeople through supervisory feedback and role modeling.
In addition to using
repetition to facilitate learning, sales managers should consider the type of
feedback they offer to salespeople during coaching sessions. Feedback can be
described as Outcome Feedback or Cognitive feedback.
Feedback can be described as Outcome
Feedback – is information about
whether a desired outcome is achieved or;
Cognitive feedback – is information about how and why the desired
outcome achieved.
Planning and Conducting Integrative
Sales Meeting – One of the
best opportunities for sales manager to demonstrate leadership ability comes
when they plan and execute an integrative meeting.
Integrative Meeting – One in which several sales and sales management
functions are achieved.
As is true with all
leadership functions, the needs and wants of the Salesforce should be given
some consideration in the planning and execution of integrative meetings.
Planning and conducting an
integrative sales meeting involves creative, sometimes glamorous activities
such as selecting a theme for the meeting, arranging for the appearance of
professional entertainers etc.
The success of all
meetings depends on the planning and execution of rather detailed activities,
such as communicating with all parties before meeting, checking site
arrangements, preparing materials for the meeting, arranging for audiovisual
support, the ensuring that all supplies are on hand when the meeting begins.
Meeting Ethical and Moral
Responsibilities
In recent years, increased
attention has been paid to the subject of ethical responsibilities of business
leaders.
Three approach to
management of ethic;
1. Immoral management
2. Amoral management
3. Moral management
Problems in Leadership
Any managerial position involving
the direct supervision of employees will require periodic handling of personnel
management problems.
Conflicts of Interest – Salespeople are bound to encounter conflict of
interest therefore problem-solving skills are often tested. In some cases,
meeting customer demands could violate company policy. In some serious cases,
salesperson could have a vested interest in a competitor’s business. The use of
confidential information for individual profit, as in the case of Wall Street
insider trading, is also an example of serious-in fact criminal- conflict of
interest.
Chemical Abuse and Dependency – Problems of chemical or drug dependency do exist
and does affects the performances of a workforce. Estimates indicates that drug
abuse in the workplace costs employees more than $100 billion annually.
Sales managers are taking
a more active role in identifying individuals with problems and in assisting
rehabilitative efforts. It is advisable to leave the counseling to
professionals.
Problem Salespeople: A Disruptive
Influence – Sales managers must be
able to deal effectively with problem salespeople. In most cases, problems can
be remedial by identifying the behavior or attitude to be corrected than
encouraging a change through motivation, supervision, and further training and
development.
Termination of Employment – In some cases, problems cannot be overcome, and
it is necessary to terminate the employment of a salesperson. When performance
consistently fails to meet standards and coaching, training, and re-training
are unsuccessful, termination or reassignment may be the only alternatives.
Sexual Harassment – In 1980, the Equal Employment Opportunity
Commission (EEOC) formally addressed a long standing workplace problem by
issuing guidelines for minimizing sexual harassment. It is important to take
action immediately if a sexual harassment problem comes to light. Employers may
be legally accountable, for example, if they ignore sexual harassment of their
salespeople by customers or others in the workplace.
The examples of Conflict
of Interest, Chemical dependency, rule-breaking salespeople, the need to
terminate employment of unsatisfactory salespeople, and sexual harassment are
offered here to remind you of the complex human issues of managing a Salesforce.
·
Conflicts of
Interest
·
Chemical Abuse
and Dependency
·
Problem
Salespeople: A Disruptive Influence
·
Termination of
Employment
·
Sexual
Harassment
Sources:
Sales Management
Analysis and Decision Making by Pilai, Ingram, LaForge, Avila, Schwepker Jr
Williams. 5th Edition Thomson South-Western
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