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C HAPTER  16 E VALUATION OF  S ALESPEOPLE’S  P ERFORMANCE
L EARNING  O BJECTIVES Performance appraisals are excellent methods for building a strong and effective sales program. This chapter should help you understand: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
P ERFORMANCE  A PPRAISALS –  W HAT  A RE  T HEY? T HE PURPOSE AND  I MPORTANCE OF  P ERFORMANCE  A PPRAISALS
Numerous specific reasons for performance appraisals exist: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TABLE 16.1 COMPARISON OF EVALUATIVE AND DEVELOPMENTAL ASPECTS OF PERFORMANCE APPRAISAL ,[object Object],Explain past perfor- mance; react to  evaluation Salesperson’s role ,[object Object],Evaluate performance Manager’s role ,[object Object],Use of evaluation forms Method ,[object Object],Improve performance  by rewarding based  on performance Objective ,[object Object],Past sales performance Time D EVELOPMENTAL  R OLE E VALUATIVE  R OLE C OMPARISON  F ACTORS
FIGURE 16.1 THE PERFORMANCE APPRAISAL’S INFLUENCE ON SALES PERSONNEL MOTIVATION, BEHAVIOR, AND PERFORMANCE
The performance level a salesperson attains results from a combination of the individual’s effort and ability. Ability, in turn, reflects the individual’s skills, training, information, and talents.
After determining the equity of – and satisfaction from – the rewards resulting from the appraisal, the individual again asks these four questions: ,[object Object],[object Object],[object Object],[object Object]
FIGURE 16.2 THE SALESPERSON PERFORMANCE APPRAISAL SYSTEM WITH ITS NUMEROUS PARTS, PROCESSES, AND PROCEDURES Purpose of  Performance  Evaluation  Evaluative  ,[object Object],[object Object],[object Object],[object Object],[object Object],Developmental  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Planning, implementing, and evaluating the performance appraisal system involves: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
W HO  S HOULD  E VALUATE  S ALESPEOPLE? The primary evaluator should be the salesperson’s immediate supervisor because this person has direct knowledge, having actually worked with the salesperson.
W HEN  S HOULD  S ALESPEOPLE  B E  E VALUATED? Salespeople should be evaluated at the end of each performance cycle. A performance cycle is a period related to specific product goals or job activities.
FIGURE 16.3 POSSIBLE MANAGEMENT INPUT INTO THE SALESPERSON’S PERFORMANCE EVALUATION Regional Manager
A RE THE  P ERFORMANCE  C RITERIA  A PPROPRIATE? A criterion is a standard on which a judgment or decision may be based.
Guidelines for Performance Criteria ,[object Object],[object Object],[object Object],[object Object],[object Object]
Quantitative Performance Criteria ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Qualitative Performance Criteria ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],P ERFORMANCE  E VALUATION  F ORMS FOR  G ATHERING  I NFORMATION
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],I NFLUENCES ON A  P ERFORMANCE  A PPRAISAL’S  A CCURACY
[object Object],[object Object],I NFLUENCES ON A  P ERFORMANCE  A PPRAISAL’S  A CCURACY   continued
R ULES FOR  P ERFOMANCE  A PPRAISALS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
C ONDUCTING THE  A PPRAISAL  S ESSION Possibly the most challenging part of a manager’s job is effectively conducting the performance appraisal session. ,[object Object],[object Object],[object Object]
Possibly the most challenging part of a manager’s job is effectively conducting the performance appraisal session.   continued ,[object Object],[object Object],[object Object],[object Object]
The following are important when reviewing performance: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TABLE 16.5 DO’S AND DON’TS ON TERMINATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],D ON’TS D O’S
The specific evaluation of a sales force’s appraisal system requires the examination of several aspects of the entire system. E VALUATE THE  E VALUATION  S YSTEM
The following questions can provide an assessment of the specific components: ,[object Object],[object Object],[object Object],[object Object]
FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT
FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT continued
T HE  B OTTOM  L INE Effective job performance is essential for organizations to stay in business and for salespeople to keep their jobs. Managers must be aware of the legal repercussions of performance appraisals. Companies must develop, relevant, discriminating, and stable criteria. Performance evaluations serve to reward effective performers and penalize ineffective salespeople. Many difficulties can be corrected if performance evaluations are effectively conducted.

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Chapter 16

  • 1.  
  • 2. C HAPTER 16 E VALUATION OF S ALESPEOPLE’S P ERFORMANCE
  • 3.
  • 4. P ERFORMANCE A PPRAISALS – W HAT A RE T HEY? T HE PURPOSE AND I MPORTANCE OF P ERFORMANCE A PPRAISALS
  • 5.
  • 6.
  • 7. FIGURE 16.1 THE PERFORMANCE APPRAISAL’S INFLUENCE ON SALES PERSONNEL MOTIVATION, BEHAVIOR, AND PERFORMANCE
  • 8. The performance level a salesperson attains results from a combination of the individual’s effort and ability. Ability, in turn, reflects the individual’s skills, training, information, and talents.
  • 9.
  • 10.
  • 11.
  • 12. W HO S HOULD E VALUATE S ALESPEOPLE? The primary evaluator should be the salesperson’s immediate supervisor because this person has direct knowledge, having actually worked with the salesperson.
  • 13. W HEN S HOULD S ALESPEOPLE B E E VALUATED? Salespeople should be evaluated at the end of each performance cycle. A performance cycle is a period related to specific product goals or job activities.
  • 14. FIGURE 16.3 POSSIBLE MANAGEMENT INPUT INTO THE SALESPERSON’S PERFORMANCE EVALUATION Regional Manager
  • 15. A RE THE P ERFORMANCE C RITERIA A PPROPRIATE? A criterion is a standard on which a judgment or decision may be based.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
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  • 27. The specific evaluation of a sales force’s appraisal system requires the examination of several aspects of the entire system. E VALUATE THE E VALUATION S YSTEM
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  • 29. FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT
  • 30. FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT continued
  • 31. T HE B OTTOM L INE Effective job performance is essential for organizations to stay in business and for salespeople to keep their jobs. Managers must be aware of the legal repercussions of performance appraisals. Companies must develop, relevant, discriminating, and stable criteria. Performance evaluations serve to reward effective performers and penalize ineffective salespeople. Many difficulties can be corrected if performance evaluations are effectively conducted.