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?

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Three Major Determinants of Motivation

• Environmental conditions
• The firms management policies
• compensation
• supervision
• task characteristics
• Personal characteristics of the salesperson

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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

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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

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Locus of Control and Motivation

• Locus
• External vs. internal attributions
• Stable vs. unstable attributions
• Examples
• External Stable
• External Unstable
• Internal Stable
• Internal Unstable

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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)

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Expectancy-Value Model in Notation

• MjEj x Vj where
• Mjmotivational 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

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Examples
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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

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Vj ? (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) Exa
mple 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
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Thats nice, but who cares?

• Nobody thinks like this (its too complicated)
• But model holds up well in field testing (good
  as if model)
• Explains up to 40 of variance in performance

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Expectancy-Value Model Advantages

• Model is a handy way to structure a messy
  question
• Forces you to project o each individuals
  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

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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)

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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?

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Motivators

• Positive Motivators
• Commission
• Recognition
• Acceptance
• Respect
• Trust
• Achievement
• Pride

• Negative Motivators
• Fear
• Intimidation
• Revenge
• Obligation
• Social Comparison (one-up)

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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 Vis match company
  suboutcomes

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How to Motivate

• Define each employees 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

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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, youll receive z
• valences for suboutcomes how important is ..
• Quantified information is valuable at both the
  aggregate level and the individual level

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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 reps personal life

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Role Stress (continued)

• Role stress is like a disease most reps suffer
  complications of role stress
• Why?
• Sales is at the boundary of the firm salespeople
  are boundary spanners, which means lots of role
  partners
• Salespeople often have to be creative find
  solutions reconcile needs
• A sales reps performance affects performance of
  lots of other people
• Sales reps personify the cruel voice of the
  marketplace (scapegoat- kill the messenger)
• Time and resource constraints necessitate
  tradeoffs between role partners expectations

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Role Stress (continued)

• Day after day, salespeople grapple with the
  messages their role partners send them and the
  pressures role partners put on them.
• Two things create role stress (create problems
  that eventually will make the salesperson
  miserable)
• Perceived Role Conflict
• Perceived Role Ambiguity

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Perceived Role Conflict

• you feel that the demands of your role partners
  are incompatible. To make one happy, you have to
  upset another (perceived).
• Upshot misery poor motivation

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Perceived Role Ambiguity

• You feel you dont have the information to cope
  with your job demands
• dont know how to do a task
• dont know what role partners expect
• dont know how your performance is being
  evaluated
• dont have clear objectives
• SUM unsure how youre doing and what to do next

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How to reduce Role Stress

• Communicate! Give feedback!
• Even bad news is better than news
• Salespeople must have accurate expectancies
  instrumentalities
• Training and encouragement increase expectancies
  for desired levels of performance- people who
  believe they can, often do
• Accept that some role stress is normal (even
  desirable)
• but be especially alert for dysfunctional levels
  of role stress in inexperienced people

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Sales Manager Atmosphere Creation

• Traditional Approach
• Authoritative management
• Emphasis on rewards the manager gives out
• pay
• promotion
• recognition of achievement
• Leading to
• Motivation to work harder intensity, persistence

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Non-traditional atmosphere

• Participate leadership
• Emphasis on intrinsic rewards motivation
• people work because selling satisfies them with
• challenges
• pride in serving customers
• pride in skills
• Warm Culture
• informal
• sense of shared values
• identify with company
• long-term employment

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Motivating

• A motivator is one who can understand an overall
  goal and inspire others to make a personal
  commitment to this goal
• 5 ways to provide a motivating environment
• Participation involvement in decisions that
  affect the team
• Environment climate for success, creativity
• Recognition giving credit, praise, rewards
• Knowledge having it, communicating it
• Style use appropriate style for each situation
• coaching, supporting, delegating, directing