Page 59 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 3: Motivating and Compensating the Sales Force

Opportunities for giving a greater degree of responsibility to (and hence motivating) salespeople Notes
include giving authority to grant credit (up to a certain value) discretion to the salespeople. The
results of an experiment with a group of British sales people by Paul, Robertson and Herzberg
(1969) showed that greater responsibility given to salespeople by such changes resulted in
higher sales success.
Herzberg's theory has been well received, in general, by practitioners, although academics have
criticised it in terms of methodology and oversimplification. The theory has undoubtedly made
a substantial contribution to the understanding of motivation at work, particularly in extending
Maslow's theory to the work situation and highlighting the importance of job content factors
which had hither to been badly neglected.
Figure 3.1

Source: Adapted form James H. Annely, Jr. James L.Gibson and John Mivancevich, Fundamentals of
Management, Sixth Ed. (Plano, Texas; Business Publications Inc. 1987.

3.1.5 Financial Motivation Techniques

Mot salesmen prefer the financial benefit because the need at the lower level of organisation is
more of physiological and safety needs, rather than those of esteem and self actualisation. Social
needs are also necessary at all levels. The financial incentives include:
1. Higher salary

2. More commission
3. Other monetary incentives
4. Profit sharing
5. Travelling allowance
6. Bonus, etc.

The financial incentives become less affective after some time and thereafter the salesman is
looking to non-financial incentives which have been discussed at length.

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