Chapter 7 Selecting the Global Sales Force

1. Chapter 7Selecting the Global Sales Force Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis C. Simintiras

2. Introduction • Sales force selection one of most important decisions made by sales manager • Operate independently, at great distances, in culturally distinct situations • Essential to hire highly skilled & competent salespersons

3. Hiring Process • Hiring process consists of four steps: • Determining the skills, knowledge and attitudes required for the open position • Attracting sufficient applicants • Conducting an interview process that accurately assesses applicant qualifications • Making an offer to one or more applicants

4. Importance of Selection • Poor selection decisions lead to turnover • Costs are staggering • Total costs include generating applicants, screening the applications, interviewing and assessing applicants, training, salary, and foregone costs of lost sales • This can equal 150% of annual salary • Formalized selection process necessary

5. Global Sales Force Decisions • Expatriates – salespersons or managers transferred from the home country • Technical expertise and a seasoned understanding of the company • Local Nationals – personnel from the country of operations • Understand local markets and culture/language • Third-country – salespersons or managers that work for a global firm in a third country • Global citizens with cross-cultural expertise

6. Characteristics of Success • MNCs use educational levels, interview skills, and previous experience to gauge successful candidates (Randall & Randall 1990) • Interviews can lack reliabilty • Must identify needed skills and expertise • Essential to prepare for and conduct a formal interview

7. Characteristics of Success • Aptitude – intelligence, verbal ability • Personal Characteristics – self-esteem, need for dominance, sociability, power • Skill levels – presentation, vocation, management • Role perceptions – understand expectations of firm and customer • Motivation – devoting necessary time • Organizational/Environmental factors – firm prestige or reputation

8. Meta-Analysis • In a landmark study, a meta-analysis was conducted of all previous studies (Churchill, Walker, Hartley and Walker 1985) • No one area significantly contributed to success; however: • Skill levels and role perceptions appeared to be most responsible for success • Areas sales managers can influence

9. Identifying Successful Characteristics • Job Analysis – determines how salespersons currently spend time and how ideally they should devote time • Job Description – describes what salesperson will be required to do • Job analysis used to write job description and job description used to find correct applicants

10. Generating Applicants • Internal Applicants – known, observed, and acculturated (e.g. engineers, manufacturing) • External Applicants • Advertisements • Employment agencies • Educational institutions • Job Fairs/Career Conferences • E-Recruiting • Creative External Applicants Sources • Military veterans, 400 applicants in Hong Kong

11. Selection Procedures • A Five-Step Process: • Application Forms • Tests • Personal Interview • References • Physical Exam • Steps examine different applicant areas and should be consistent and supportive

12. Application Form • Standardized form • Provides consistent information about all applicants • Applicant must read and follow instructions • Information can be used by managers to plan interview

13. Tests • Used as a confirmatory input to the interview process • Personality tests used to evaluate traits • Intelligence tests to assess mental abilities • Aptitude tests to measure interest or ability to perform • Tests must be valid and predict success

14. Personal Interview • Most important step of hiring process • Applicant must respond to questions and interact with interviewer • US applicants try to sell themselves • Not the case in other cultures • Three types of interviews • Structured, Unstructured and Stress • Each has advantages and disadvantages

15. References • How has applicant performed in the past? • Speak to former employers • Check facts of employment • Applicants primarily list references who will provide positive remarks • When permitted, ask references for other names • Check with clients, former employers, business associates, and financial references

16. Physical Exam • Selling is hard work • Travel in diverse settings and time zones • Must be healthy and capable of performing • Physical defects could negate job offer • This is not legal in all nations, so sales manager must seek legal guidance when hiring

17. Making the Job Offer • Once all applicants have been interviewed, they should be ranked • Contact the best qualified and see if they are still interested—if so offer job • Give applicant a specified period to accept • Send a confirmatory letter for the applicant to sign and return by the deadline

18. Chapter Summary • Selection is very important for the firm • Sales manager must determine qualifications • Attract a sufficient pool of applicants • Interview and select the “best qualified” • Make the job offer • Chapter provides manager with guidance • Following process increases probability of hiring the correct salesperson

19. Discussion Questions • What are the advantages and disadvantages of hiring expatriate, local, and third-country salespersons? • What is the relationship between a job analysis and a job description? • Why is the personal interview often called the most important step in the hiring process?