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Evaluation and Control Sales Force

The document discusses the process of evaluating salesperson performance. It begins by defining performance evaluation as an organized, periodic assessment of an employee's current and future job performance. The main purposes of evaluation are to measure performance against targets, provide feedback, determine training needs, ensure proper compensation, and identify employees for promotion or termination. Evaluation methods can be objective, using quantitative metrics, or subjective, relying on human judgment. The process involves establishing standards, measuring actual performance, comparing the two, identifying deviations, and taking corrective actions. The goal is to both diagnose issues and prognose future improvements.

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Manas Kumar
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103 views16 pages

Evaluation and Control Sales Force

The document discusses the process of evaluating salesperson performance. It begins by defining performance evaluation as an organized, periodic assessment of an employee's current and future job performance. The main purposes of evaluation are to measure performance against targets, provide feedback, determine training needs, ensure proper compensation, and identify employees for promotion or termination. Evaluation methods can be objective, using quantitative metrics, or subjective, relying on human judgment. The process involves establishing standards, measuring actual performance, comparing the two, identifying deviations, and taking corrective actions. The goal is to both diagnose issues and prognose future improvements.

Uploaded by

Manas Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Salespersons

Performance
Evaluation and
control
Meaning of Evaluation

 Evaluation is a system, it is an organized and periodic assessment of


an employee's performance on his current job and his potential for
future jobs.
 Evaluation actually aims at assessing a person’s performance at
periodic intervals to examine as to how he is performing on the job,
and the kind of potential he has with respect to his facts, skills and
capabilities so that he can contribute even better in future on those
sales positions, or on higher sales positions.
 It is also called as performance evaluation or performance
appraisal. And the aim of any performance evaluation system is to
measure the effectiveness and efficiency of the sales force, and to
make them for future.
Meaning of Evaluation

 it is an effective means for controlling the performance of sales


personnel as well because, it involves comparing the actual sales
performance of employees with the desired performance of the
sales personnel and taking corrective actions for improving their
performance.
Purpose of Salespersons Performance
Evaluation
 The purpose of evaluation is to measure as to how well the sales persons have
performed to achieve the target
 feedback to the employees. Now, here in case performance has been up to
the mark, it has been as per set standards, it also means that there has to be
reward system for the good performers and for the sales personnel who have
met the desired performance level. these rewards could be monetary and non-
monetary.

 Training needs and design of training programs-To determine the specific


training and counseling needs of individual salespeople and the overall sales
force

 training needs is something which needs to be taken care of, and the basis of
this is again performance evaluation both under performers and good
performers may need to be provided with training.
 s
Purpose of Salespersons
Performance Evaluation
 For the under performers, it would help them improve their performance, and for
the good performers, it would actually mean enhancing their knowledge, skills
and abilities to prepare them for future job positions.

 . To ensure that compensation and other reward disbursements are consistent


with actual salesperson performance.

 To identify salespeople that might be promoted

 To identify salespeople whose employment should be terminated after giving


adequate chances for improvement
 .
Purpose of Salespersons
Performance Evaluation
 To identify criteria that can be used to recruit and select
salespeople in the future.
 To advise salespeople of work expectations.
 . To motivate salespeople through recognition and reward for good
performance.
 . To improve salesperson performance by identify the causes of
unsatisfactory performance.
Methods of evaluation

 methods of evaluation
 They are used two types of measures
 Objective measures
 Subjective measures.
 Objective measures are those which are quantitative measures,
and they measure employee performance in terms of units that can
be quantified.
 Subjective measures are measures which are more qualitative in
nature, and they measure employee performance based on
human judgment, like rating, ranking, paired comparison, forced
distribution Etc.
EVALUATION OF SALES FORCE

 In general sense, the evaluation process consists of comparing actual


performance with planned performance. Evaluation implies a process
of systematically uncovering deviations between goals and
accomplishments. When weaknesses are identified, the firm will devise
and implement corrective methods through supervision and other
control
 devices. When strengths are indicated, by the discovery of deviations in
a favorable direction, management will use this information as a
valuable aid in the anticipating and dealing with problems in future
periods. This may take the form of revising performance standards and
generally reappraising present policies, procedures, marketing
communication methods, and potential opportunities for the firm. Thus,
the evaluation process aims at both prognosis and diagnosis and is
considered to be a preventive and curative marketing device.
EVALUATION OF SALES FORCE

 Evaluation system should do three essential things for the sale


manager and sales-people:

 • Provide feedback to each salesperson on individual job


performance.

 • Help salespeople modify or change their behavior toward


effective work habits
 • Provide information to sales managers on which to base decisions
on promotion, transfer and salespeople.
process of sales force evaluation

 Evaluation system comprises the following Steps


 Establishing performance standards for sales people,-

 performance standards are also called as sales objectives or targets


or sales quotas. And it involves establishing performance standards
based on the nature of the job. So, whenever standards have to be
set for sales personnel, it is very important that they are based on
the nature of the job. And there has to be coherence between the
sales performance standards and what is critical for performing a
job so that, you know, the desired results can be obtained.

process of sales force evaluation

 A sales job analysis is very necessary, and what we are talking of


again here is the job description. So, you start with a job analysis
and a job description, and then what becomes important is
establishing performance standards, you know, which again would
mean setting up a policy framework for performance evaluation of
sales force.

process of sales force evaluation

 Measuring the actual performance of sales personnel


 Salesperson’s actual performance is measured and compared with the
performance standards
 • For this, sales managers use different methods or forms:
 • Graphic rating scales
 • Ranking
 • Behaviourally anchored rating scale (BARS)
 • Management by Objectives (MBO)
 • Descriptive statements
 • Companies combine some of the above methods for an effective
evaluation system-
 ,
process of sales force evaluation
 Comparing the actual against the standards
 Performance review / appraisal session is conducted, after evaluation
of the salesperson’s performance
 • Sales manager should first review high / good ratings, and then review
other ratings
 • Both should decide objectives / goals and action plan for future
period
 • After the review, sales manager should write about performance
evaluation & objectives for the future
 • Guidelines for reviewing performance of salespersons
 • First discuss performance standards / criteria / bases
 .
process of sales force evaluation

 Ask the salesperson to review his own performance


 • Sales manager presents his views on the salesperson’s review
performance.
 • Establish mutual agreement on the performance
 If disagreement of opinion occur the sales manager should
carefully explain the reasons to the salesperson.
process of sales force evaluation

 Identify deviations and take corrective action.


 After finding the causes of poor performance, the sales manager
should decide a suitable action to remove the cause of the
problem .
 This steps is necessary if performance falls short of standards and the
analysis indicates action is required. When performance deviates
from standards, managers must determine what changes, if any,
are necessary .The corrective action could involve a change in
organization’s operations.
Reference

 Krishna K Havaldar and Vasant M Cavale Sales and Distribution


Management Text and cases. Tata McGraw Hill Education private
Limited

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