Ppt for Responsibilities of Sales Managers

					       Module Seven

   Sales Management
Leadership and Supervision
    The Importance of Leadership
              An Expert’s Viewpoint:
Regan Lancaster, vice president of global sales at i2
Technologies uses conventional and unconventional
tactics to lead his salespeople. He offers substantial
incentive-based pay and promotion opportunities. In
addition, he has dressed as a superhero and staged a
mock battle against competitors, motorcycled through a
brick wall, and repelled down a four story building to
inspire his salespeople.

    The Importance of Leadership
              An Expert’s Viewpoint:


Lancaster’s leadership is paying dividends. During his
first seven years at i2, revenues have increased more
than 750 percent. In 2000, i2 had a record-breaking
year for e-business with revenues of $1.1 billion.
  What is the Difference Between
   Leadership and Supervision?

  The use of influence with other people through
  communications processes to attain specific goals
  and objectives

  The day-to-day control of the salesforce under
  routine operating conditions
Sales Force Socialization (Revisited)
Task-Specific Self-Esteem:
  The extent to which an individual believes s/he can
  perform a task competently

Organizational Commitment:
  The extent to which an individual feels a bond to the

  The extent to which work activity is directed by rules,
  regulations, and commitment
Sales Force Socialization (Revisited)
Work Alienation:
  An individual's psychological separation from the
  activities of the job

Job Involvement:
   – An individual's psychological attachment to the
     job itself
       Contemporary Views of
         Sales Leadership

• Leader-Member Exchange (LMX) Model
   – trust (salesperson and customer)
• Transformational Leadership
   – change agents, charismatic
• Behavioral Self-Management (BSM)
   – self-control, self-discipline by the salesperson
  Key thoughts on sales leadership

• Build a strong, trust-based relationship with
  individual salespeople
• Be an active stimulus for change, and work with
  sales people and others to accomplish the
• Expect salespeople to take an active role in
  managing themselves
Leadership Model for Sales Management

              Goals &            Situation
              Objectives         Time Constraints
              Individual         Nature of Tasks
              Organizational     History and Norms

      Power                  Sales                Needs
                          Manager’s               Salespeople
      Sales Manager       Leadership
                         Effectiveness            Other People

               Power            Anticipation
               Salespeople      Diagnostic
               Other People     Selection
                                - Influence Strategy
                                - Communications
      Power and Leadership
Five types of power which may be present
in interpersonal relationships:

          Expert Power
          Referent Power      Bush has
          Legitimate Power    types of
                              power ?
          Reward Power
          Coercive Power
What makes an effective leader?

 • Trait Approach (not very useful)
 • Behavior Approach (not very useful)
 • Contingency Approach (situational)
 Needs and Wants of Salespeople

• Important when coercive power is not being
• Realize all needs and wants cannot be met
• Not all leadership directives need to be based
  on needs and wants
• Consider each salesperson as a unique
  individual (requires a lot of the manager)
          Goals and Objectives

• Leadership is easier when personal goals and
  objectives of the salespeople are consistent
  with those of the organization
• Sales managers strive to seek balance and
  consistency between organizational goals and
  their salespeople’s goals.
        Either hire people with consistent
        goals or educate and train them
        to have consistent goals
         Leadership Skills

• The ability to anticipate problems
• The ability to seek and obtain substantive
• The ability to diagnose problems and
         Leadership Skills

• The ability to select an appropriate
  leadership behavior and match it to the
• The ability to communicate effectively
      Communication Skills:
       Influence Strategies

•   Threats (coercive power)
•   Promises (reward power)
•   Persuasion (expert or referent power)
•   Relationships (referent or legitimate power)
•   Manipulation
The continuous development of salespeople through
supervisory feedback and role modeling. Suggestions for
affective coaching include:
  •   Take a we approach
  •   Address only one or two problems at a time
  •   Don’t focus on criticizing poor performance, reinforce good performance
  •   Foster involvement
  •   Recognize differences in salespeople and coach accordingly
  •   Coordinate coaching with more formal sales training
  •   Encourage continual growth and improvement
  •   Insist salespeople evaluate themselves
  •   Obtain agreement with respect to punishments and rewards
  •   Keep good records
Planning and Conducting
  Integrative Meetings

     • Keep technical presentations
     • Use visual aids and breakout
       discussion groups
     • Keep salespeople informed of
       corporate strategy and their role in it
     • Minimize operations review
Planning and Conducting
  Integrative Meetings

     • Set a humane schedule . . . allow
       time for sharing and adequate
     • Set and communicate the agenda
     • Ask for input from the salespeople
     • Generate excitement with contests
       and other rewards
 Approaches to Management Ethics
Immoral Management
  – Intentional and consistent management activity
    conflicting with what is moral (ethical).
  – Exploits opportunities for corporate gain. Cut corners
    when it appears useful. ENRON
  – Seeks profitability and organizational success at any
    price. ENRON
  – Selfish. Management cares only about its or the
    company’s gain. ENRON
                       Dell's Higher Standard
Dell's success is built on a foundation of personal and professional integrity. We hold
    ourselves to standards of ethical behavior that go well beyond legal minimums. We
    never compromise these standards and we will never ask any member of the Dell team
    to do so either. We owe this to our customers, suppliers, shareholders and other
    stakeholders. And we owe it to ourselves because success without integrity is
    essentially meaningless.
Our higher standard is at the heart of what we know as the "Soul of Dell" - the statement of
    the values and beliefs which define our shared global culture. ………..we want all
    members of our team, along with our shareholders, customers, suppliers and other
    stakeholders, to understand that they can believe what we say and trust what we do.
    Our higher standard includes several key characteristics that both underpin the Soul of
    Dell and provide the foundation for our Code of Conduct:
• Trust - Our word is good. We keep our commitments to each other and to our
• Integrity - We do the right thing without compromise. We avoid even the appearance
    of impropriety.
• Honesty - What we say is true and forthcoming - not just technically correct. We are
    open and transparent in our communications with each other and about business
• Judgment - We think before we act and consider the consequences of our actions.
• Respect -We treat people with dignity and value their contributions. We maintain
    fairness in all relationships.
• Courage - We speak up for what is right. We report wrongdoing when we see it.
• Responsibility - We accept the consequences of our actions. We admit our mistakes
    and quickly correct them. We do not retaliate against those who report violations of law
    or policy.
 Approaches to Management Ethics
Amoral Management
  – Management activity that is neither consistently moral
    or immoral . . . Decisions lie outside the sphere to
    which moral judgments apply.
  – Give managers free rein. Personal ethics may apply
    but only if managers choose. Respond to legal
    mandates if caught and required to do so.
  – Seeks profitability. Other goals are not considered.
  – Well-Intentioned but selfish in the sense that impact
    on others is not considered.
 Approaches to Management Ethics
Moral Management
  – Management activity conforms to a standard of
    ethical or moral behavior.
  – Live by sound ethical standards. Assume leadership
    position when ethical dilemmas arise. Enlightened
  – Seeks profitability within the confines of legal
    obedience and ethical standards
  – Management wants to succeed but only within the
    confines of sound ethical precepts.
       Meeting Ethical and
      Moral Responsibilities

Sales managers should be aware of three
particularly relevant types of unethical acts:
   1. Nonrole

   2. Role Failure

   3. Role Distortion.
            Meeting Ethical and
           Moral Responsibilities

Type      Direct Effect      Examples
Nonrole   Against the firm   • Expense account cheating
                             • Embezzlement
                             • Stealing supplies

Role      Against the firm   • Superficial performance
Failure                        appraisal
                             • Not confronting expense
                               account cheating
                             • Palming off a poor performer
                               with inflated praise
             Meeting Ethical and
            Moral Responsibilities

Type       Direct Effect   Examples

Role       For the firm    • Bribery
Distortion                 • Price fixing
                           • Manipulation of suppliers
         Problems in Leadership
• Conflicts of Interest (NYSE specialists)
• Chemical Abuse and Dependency
• Problem Salespeople: A Disruptive Influence
  –   Lone Wolf (high sales)
  –   Corporate Citizens (low sales)
  –   Institutional Stars (the best)
  –   Apathetics (fire them)
• Termination of Employment
• Sexual Harassment
            Sexual harassment

• Zero tolerance means…?…..a good policy?
• California law sets a zero tolerance policy,
  holding employers automatically responsible for
  any supervisor who sexually harasses an
  employee – regardless of whether the company
  knew about the offensive conduct. [2003]
• California Supreme Court ruled in Nov. 2003
  that the employee must complain promptly….
  the employer is strictly liable for all acts of
     sexual harassment by a supervisor.
However, the Court announced that an employer can raise
    the defense of "avoidable consequences," which will not
    eliminate liability, but can be used to reduce a plaintiff's
    damages. The defense will apply if the employer can
    prove three elements:
(1) the employer took reasonable steps to prevent and
    correct workplace sexual harassment;
(2) the employee unreasonably failed to use the preventive
    and corrective measures that the employer provided;
(3) reasonable use of the employer's procedures would
    have prevented at least some of the harm that the
    employee suffered.

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