Sales Team Management: Performance, Recruitment, and Selection

This report provides a comprehensive analysis of sales team management, focusing on the evaluation of current sales performance management tools and techniques. It explores various theories of motivation, including Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, Vroom's Expectancy Theory, and McClelland's Theory, and explains their link to sales performance. The report emphasizes the importance of monitoring sales team performance, identifying key performance indicators (KPIs), and managing performance variances. It also highlights the significance of two-way communication and support for sales team members. Furthermore, the report delves into the recruitment and selection process, offering training notes to assist sales managers in staffing decisions, developing job profiles and person specifications, and contributing to selection interviews. The report underscores the impact of different team members on overall sales performance and concludes with a review of staffing levels in light of organizational strategy and budgets.

MANAGING A SALES
TEAM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1: Evaluating Effectiveness of Current Sales Performance Management Tools and
Techniques.......................................................................................................................................1
1.1 Theories of Motivation..........................................................................................................1
1.2 Explaining Link between Motivation and Performance.......................................................2
2.1 Explaining need to monitor Sales Team Performance..........................................................3
2.2 Identifying tools required for monitoring Performance........................................................3
2.3 Key Performance Indicators and their roles..........................................................................3
2.4 Managing Performance Variances........................................................................................4
2.5 Importance of two-way Communication..............................................................................5
2.6 Support to the performance of sales team members.............................................................5
2.7 Explaining impact of members on sales performance..........................................................6
TASK 2: Producing Training Notes to assist Sales Manager is regards to recruitment and
Selection of Sales Team...................................................................................................................6
3.1 Reviewing Staffing levels in light of Organisation’s Strategy and Budgets.........................6
3.2 Explaining process of Recruitment and Selection................................................................6
3.3 Developing a job profile for a Sales Person..........................................................................7
3.4 Developing Person Specification for Sales Person...............................................................7
3.5 Contribution to Selection Interviews....................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Managing a sales team is an Art that requires dedication and efforts of sales manager and also
support of the organisation. It could be difficult to strike the right balance between
overwhelming sales representatives and encouraging top performance with impossible goals.
Success of a sales manager depends upon the ability and performance of its sales team. Thus, to
effectively manage sales team, manager needs to keep in mind various points that are discussed
in this report.
TASK 1: Evaluating Effectiveness of Current Sales Performance Management
Tools and Techniques
1.1 Theories of Motivation
To have an efficient sales performance, organisation needs to motivate sales team as it is key
component of effective selling. Different people get motivated in different ways and for this
various theories of motivation have been proposed that explains trigger points that motivates
people.
Maslow’s Hierarchy of Needs: This theory compresses human needs into five basic categories.
Maslow categorised all human needs into hierarchy beginning from basic needs to the need of
self-actualisation (Theories of Motivation to increase productivity, 2018). As per his theory,
lowest unsatisfied need becomes the most dominant one which activates a person to act in order
to fulfil that need. On the other part, once the need is satisfied, it does not motivate a person any
more. Thus, individuals may get satisfied or dissatisfied from their work depending upon the
characteristics and environment of job as they seek for higher level needs.
Herzberg’s Two Factor Theory: This theory describes some factors that are classified as
Motivation Factors and Hygiene Factors. Motivating factors are those that cause motivation and
job satisfaction once met, while Hygiene Factors are those that cause dissatisfaction among
individuals if not met ( Herzberg, Mausner, and Snyderman, 1959). This theory emphasises upon
the satisfaction of Hygiene factors as those factors are needed to ensure that employee is not
dissatisfied.

Vroom’s Expectancy Theory: As per Vroom’s theory, behaviour and action of a person depends
upon Expectancy, Instrumentality and Valence. Expectancy is the belief that the outcome of
efforts will be better performance, Instrumentality is the belief to receive an award if expected
performance is met and lastly Valence is the value that an individual places on the reward based
on their goals, needs and values (Kaplan and Norton, 1992). According to Expectancy theory,
Motivational Force = Expectancy x Instrumentality x Valence
If any among this is Zero then there will be Zero motivation among employees.
McClelland Theory: This theory focuses on satisfying existing needs of an individual rather than
developing or creating further needs (Auh, Spyropoulou, Menguc and Uslu, 2014). McClelland
affirms that there are three major motivators:
Achievement: Need to achieve mastery or competence
Affiliation: Need for love and belongingness
Power: Need for controlling self or other’s work
Above mentioned needs could lead to variety and diversity among employees.
1.2 Explaining Link between Motivation and Performance
Sales manager has a strong influence on working conditions and thus can have both positive and
negative effect on employee motivation. Employees of MARKETING EYE can be de-motivated
if motivational factors are not considered. For example, if an employee has achieved a target
performance and is not recognised, it may lead to dissatisfaction which eventually will cause
negative impact on his performance (Motivation and Performance, 2018). Further, employees
can be motivated by giving them responsibility and making them realise their worth to the
organisation. More will be the motivation more effective will be their performance.
According to Hackman and Oldham, if there is a meaningful job with some responsibility and
the results are known in advance then an employee’s performance can be increased (Maslow,
1943). Therefore, to boost performance along with motivation, MARKETING EYE needs to
create clear sales target which are then linked back to the valuable incentives.

2.1 Explaining need to monitor Sales Team Performance
In order to manage a sales team, it is also essential to have an effective performance management
system in organisation. Thus, MARKETING EYE ensures monitoring performance of its sales
team for following reasons:
 It is essential to track the performance of sales team members in order to ensure that
customer base is enhancing and also to identify whether sales potential of existing customers
is being maximized or not.
 Further, monitoring sales team performance will also enable sales manager in identifying
whether the sales target are relevant and whether the targeted areas drives profitability to the
organisation (Chen, Peng and Hung, 2015).
 Lastly, monitoring sales performance also ensures continual improvement in sales process
and strategy.
2.2 Identifying tools required for monitoring Performance
There are different tools that are used to monitor the performance of an individual team member
and sales team as a whole. However, two most important tools that can be used by
MARKETING EYE are:
Key Performance Indicators (KPI’s): KPI is a quantifiable measure that is used to track
and evaluate the success of sales team or organisation as a whole (Key Performance indicators,
2018). An efficient KPI must be specific, measurable, attainable, relevant, and time bound.
Benchmarking: It is another tool that not just evaluates the performance of sales team but
also develop ways to improve performance. MARKETING EYE can use either internal
benchmarking where performance is compared with the “best practice” within the organisation
or external benchmarking where comparison is made with “best practices” outside the
organisation.
2.3 Key Performance Indicators and their roles
Key performance indicators will provide an insight to MARKETING EYE onto how each
member of sales team is performing and is needed to be set in order to provide some metrics to
work against. KPI’s for monitoring sales performance could include setting target over a time
period (Schiffman, 2006). For this, combinations of the following can be used:

 Leads Generated: number of new potential customers generated. Leads followed up: number of sales enquiry followed up by each member.
 Conversion rate: percentage number of leads converted into customers. Through this,
employee potential can be evaluated.
 New sales: amount of revenue generated from new customers. This will show the potential
of employees in satisfying new customers.
 Renewals: amount of revenue generated from existing customers. With renewals an
employee’s capability of retaining customers can be known.
 Lapsed customers: number of customers lapsed. This will enable in identifying customers
who have not made purchase from long time.
2.4 Managing Performance Variances
Monitoring the performance not only measures it but also tracks if any difference between
targeted and actual performance persists or not (Butler, 2007). It is essential for MARKETING
EYE to investigate and manage variances among the performance in order to have better
understanding of team performance. If actual performance exceeds the target performance, then
performance variance is said to be positive and when actual performance is below the target
performance then performance variance is aid to be negative (Liozu, 2015).
It is important to investigate both types of performance so as to identify the causes behind it.
Once the causes behind variances are identified then MARKETING EYE can take significant
actions to improve performance. For example:
 Increased time and efforts on focused targets
 Improving sales strategy
 Improving sales process
 Boosting employees for better performance, etc.
2.5 Importance of two-way Communication
Two-way communication can be beneficial for MARKETING EYE in following ways:
 Two-way communication eventually make employee feel their worth to the organisation
and in turn boost their morale which eventually leads to higher performance.

 It is essential for promoting respect and mutual understanding between sales team
members.
 Two-way communication also enables sales manager in creating good working
environment for motivating the team (Garrett and Gopalakrishna, 2017).
 It also provides opportunity to members to discuss the reasons behind performance
variance which eventually helps sales manager in managing performance more
effectually.
 Team leaders can then understand variance from team member’s perspective and can
arrange training and development sessions accordingly.
 Lastly, it also enables team leader to provide positive feedbacks which ensures team
member feels valued and their efforts being recognized.
2.6 Support to the performance of sales team members
Enhancing sales performance is not just responsibility of team members, in-fact team leader,
sales manager and other officials of the organisation are equally responsible for same. Through
different ways MARKETING EYE can support the performance of sales team members:
Performance Appraisal: It is a mechanism that is used to review and monitor the
performance and competency of sales team members. With this sales department can make
action plans for future development, goals and targets.
On the job training: To enhance the productivity of employees and increase their
performance, management can also provide them on the job training regarding the area’s where
they are lacking (Art of managing a Sales Team, 2018). For example: job rotation within the
team, demonstrating sales technique, etc.
Mentoring and coaching: Different members of sales team have different training and
developing needs which can be provided by mentoring and coaching them. It will require
allocating a senior member to act as a mentor or coach for the other remaining members of team.
2.7 Explaining impact of members on sales performance
Different members of team have different role and responsibilities that can significantly impact
overall sales performance. For example, the operation’s and logistic department ensures whether
the right quality product is arrived at right place, at right time, in right quantity along with proper

documentation. Everything done right will increase customer satisfaction which in turn will
retain that customer to the organisation (Wang, Hoegg and Dahl, 2018). And if an order is not
implemented perfectly, it can lead to the sales get repeated dramatically and can impact on sales
performance. Similarly, if a customer will have a bad experience with some another member of
the organisation in dealing, it will also have a negative impact and can cause sales repetition.
TASK 2: Producing Training Notes to assist Sales Manager is regards to
recruitment and Selection of Sales Team
3.1 Reviewing Staffing levels in light of Organisation’s Strategy and Budgets
On the basis of strategic priorities of the organisation, resources are allocated and then monitored
and evaluated in the light of strategic direction. While staffing organisation must ensure that it
must align with the budget allocated to each territory (Zaki, and et.al., 2017). Therefore, it is
essential to recruit candidates having right knowledge and skills in order to maximize revenue
generation so as to have an effective use of available budget.
Major reason for change in staffing levels either upcoming vacancy due to resignation of existing
member or due to change in the requirements of a job role. Therefore, MARKETING EYE need
to be aware of the organisation’s growth strategy and how sales team could be moulded to
achieve future goals.
3.2 Explaining process of Recruitment and Selection
Major steps of recruitment and selection process are:
Role Definition: first step includes analysing role of sales position, creating a job description and
person specification.
Attracting applications: Role definition is followed by attracting applicants either internally or
externally or through employee referral.
Managing application process: Applications are received either in CV format or in the format of
application form. Both the documents contain personal information of candidates and thus must
be treated confidentially (Reid, Plank, Peterson and Rich, 2017). Also enquiries must be dealt
promptly to build good impression of organisation.
Managing selection process: Thereafter comes, the process of selecting or short-listing
candidates as per the job requirements. These candidates are then invited for selection process.

Making the appointment: Before making a job offer to the selected candidates, employer must
ensure whether the candidates have right to work in that country and are appropriate for the
work.
3.3 Developing a job profile for a Sales Person
A job profile must include:
 Title of job or position
 Reporting authority
 Overall Responsibilities including key areas
 Consulting authority
 Qualification and experience required
 Other terms of employment
3.4 Developing Person Specification for Sales Person
Person specification includes desirable skill set required for the job profile. Organisation need to
consider person specification and job profile together so as to appoint a best fit candidate
(Liozu,, 2015). It should include following:
 Relevant experience and qualification
 Required skill set
o Communication skills
o Team skills
o Problem solving skills
o Attractive personality
o Focus on targets
In order to develop an effective person specification, required skill set should be developed in
conjunction with HR and team members.
3.5 Contribution to Selection Interviews
Selection interviews provide opportunity to candidates to ask questions regarding job roles and
responsibilities, team and organisation and allows them to decide if they would take the job or
not (Butler, 2007). Thus, in following ways team leader contributes to the selection interviews:
 Explaining overall roles and responsibilities to the candidate in detail

 Explaining future growth opportunities with the job role
 Assessing candidate’s ability
 Explaining details of training session that would be provided and benefits of training
 Providing feedback
CONCLUSION
Above report concluded that, success of sales team depends upon the performance of its
members. To boost the performance of team members, sales manager and team leader plays a
vital role and can take significant steps to motivate employee morale which in turn results in
higher performance and achievement of target results.

REFERENCES
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Garrett, J. and Gopalakrishna, S., 2017. Sales team formation: The right team member helps
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Herzberg, F., Mausner, B. & Snyderman, B.B., 1959). The Motivation to Work. John Wiley.
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