A very important part of managerial tasks is to measure the performance of their employees. The evaluation is necessary to attain the objectives of the company as possible deficits can be identified and steps can be taken against them (Jobber and Lancaster, 2003: 489). The performance measurement means to discover the strengths and weaknesses of the employees with the aim to improve their performance. The evaluation should also recognize and reward the success of the person evaluated and give him/her a clear feedback about the performance in order to support his/her development (Spiro, Stanton and Rich, 2003: 445). This study will focus on the performance measurement of the sales force, as the success of the sales department is decisive of the company’s overall performance. In order to get motivated and qualified salespeople sales managers must not just analyze statistics but also need to give directions and the possibility of self-development (Spiro, Stanton and Rich, 2003: 441-442). Following, a process of measuring sales force performance will be pointed out which leads the sales manager through the evaluation. Afterwards, the importance of performance measurement within sales management will be shown and a conclusion will be drawn.
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Table of Contents
- 1 Introduction
- 2 Process of measuring sales force performance
- 2.1 Establish some basic policies
- 2.2 Select bases for evaluation
- 2.2.1 Output measures
- 2.2.2 Input measures
- 2.3 Set performance standards
- 2.4 Compare performance with standards
- 2.5 Discuss the evaluation with the salesperson
- 3 Importance of performance measurement within sales management
- 4 Conclusion
Objectives and Key Themes
This study aims to outline a process for measuring sales force performance and demonstrate its importance within sales management. The focus is on providing a structured approach for evaluating salespeople, considering both quantitative and qualitative factors.
- Sales force performance measurement process
- Quantitative and qualitative evaluation methods
- Importance of performance evaluation for company success
- Setting performance standards and objectives
- Feedback and communication in performance evaluation
Chapter Summaries
1 Introduction: This introductory chapter establishes the importance of performance measurement within the context of sales management. It highlights that evaluating employee performance is crucial for achieving company objectives, identifying shortcomings, and implementing corrective actions. The chapter emphasizes the dual purpose of performance measurement: identifying employee strengths and weaknesses for performance improvement, as well as recognizing and rewarding successes while providing constructive feedback for professional development. The chapter specifically focuses on the sales force's performance due to its critical role in overall company success, arguing that effective sales management necessitates not just statistical analysis but also guidance and opportunities for employee development. The chapter concludes by outlining the structure of the study: a detailed process for measuring sales force performance followed by a discussion of the importance of performance measurement in sales management.
2 Process of measuring sales force performance: This chapter details a five-step process for measuring sales force performance. It begins by outlining the necessity of establishing basic policies, such as defining participants in the evaluation process (including the use of 360-degree feedback), the level of employee involvement in self-evaluation (like management by objectives), and the frequency of evaluations. The second step involves the selection of evaluation bases, stressing the importance of using diverse criteria for a comprehensive evaluation. This section introduces the distinction between output measures (quantitative results) and input measures (efforts and activities), emphasizing the potential for misleading conclusions when relying solely on output measures like sales volume. Output measures are then elaborated upon, including examples like sales revenue, profits, and sales per account, with discussions on their use in meaningful comparisons. The limitations of output measures are highlighted, leading to the introduction of input measures (both quantitative and qualitative), which account for the efforts and activities of salespeople. The chapter systematically details this five-step process to provide a practical framework for sales performance measurement.
3 Importance of performance measurement within sales management: (Note: Content for this chapter is not provided in the source text and therefore cannot be summarized.)
Keywords
Sales force performance, performance measurement, evaluation, output measures, input measures, sales management, quantitative, qualitative, feedback, objectives, 360-degree feedback, employee development.
Frequently Asked Questions: Sales Force Performance Measurement
What is the purpose of this document?
This document provides a comprehensive overview of sales force performance measurement. It outlines a structured process for evaluating salespeople, discusses the importance of performance measurement within sales management, and highlights key themes and concepts.
What process is outlined for measuring sales force performance?
The document details a five-step process: 1) Establish basic policies (including participation, self-evaluation, and evaluation frequency); 2) Select evaluation bases (both output and input measures); 3) Set performance standards; 4) Compare performance with standards; and 5) Discuss the evaluation with the salesperson.
What are output measures, and what are their limitations?
Output measures are quantitative results, such as sales revenue, profits, and sales per account. While useful, they can be misleading if used solely, as they don't account for the effort and activities of salespeople.
What are input measures, and why are they important?
Input measures assess the efforts and activities of salespeople, both quantitatively and qualitatively. They provide a more comprehensive evaluation by considering factors beyond just sales results, leading to a fairer and more insightful assessment.
What is the importance of performance measurement in sales management?
Performance measurement is crucial for achieving company objectives, identifying shortcomings, implementing corrective actions, recognizing successes, providing constructive feedback, and fostering employee development. It allows for a balanced approach, considering both quantitative and qualitative aspects of performance.
What key themes are addressed in the document?
Key themes include the sales force performance measurement process, quantitative and qualitative evaluation methods, the importance of performance evaluation for company success, setting performance standards and objectives, and feedback and communication in performance evaluation.
What types of feedback are mentioned?
The document mentions the use of 360-degree feedback and management by objectives as approaches to incorporate different perspectives and employee involvement in the evaluation process.
What is the overall structure of the document?
The document includes an introduction, a detailed explanation of the sales force performance measurement process, a section on the importance of performance measurement within sales management (although content for this chapter is missing from the source), and a conclusion. It also provides a table of contents, objectives and key themes, chapter summaries, and keywords.
- Quote paper
- Diplom-Betriebswirtin (FH) Meike Lehmann (Author), 2007, Sales Force Performance Measurement, Munich, GRIN Verlag, https://www.grin.com/document/122193
