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Sales Management 11. Sales Management Leadership and Supervision. Leadership. Using influence with other people through communication to achieve goals/objectives. Like moving a rope: easier to pull than push. Dwight D. Eisenhower. Supervision. Routine, Day-to-Day control
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Sales Management 11 Sales Management Leadership and Supervision
Leadership • Using influence with other people through communication to achieve goals/objectives. • Like moving a rope: easier to pull than push. • Dwight D. Eisenhower
Supervision • Routine, Day-to-Day control • PART of Leadership, not all of it
Variables Related to Performance and Job Satisfaction • Task-Specific _________ • Linked to improved performance and job satisfaction • Organizational _________ • A psychological bond to the organization • Demonstrated by behavior over time • _________ • The extent to which work activity is directed by rules, regulations, & commitment • _________Alienation • Psychological separation from the activities of the job • Job _________ • Strong attachment of the salespeople to the job itself
Three Leadership Models • Leader-Member _________(LMX) a) Manager and Salesperson influence each other b) Unique relationships with each dyad • _________ Leadership • Leaders: charismatic, inspirational, mission driven • Change Agent: new ideas, new methods • Behavioral _________(BSM) • Self-Imposed planning, behavior, evaluation, rewards & punishment. • Salespeople can work w/o constant supervision, more enthusiastic by being in control
Factors Affecting Sales Manager’s Leadership Effectiveness • Power: Manager/salespeople/others • Situational • Needs & wants of salespeople • Goals & Objectives of Salespeople/Company • Manager’s Leadership Skills
Power: 5 Kinds of Power • _________ Power: Knowledge Based • _________ Power: Similarity, Friend, Role-Model • _________ Power: Role, Position • _________ Power: Ability to give reward for action • _________ Power: Ability to remove rewards or to punish for wrong action/inaction. Power is in the eye of the beholder.
Situational Factors • Traits: Personality traits of an effective leader • Behavior: Behaviors associated with an effective leader • Contingency: Interaction between situational and other factors • Situational Factors: Time constraints, the nature of the task, and the history and norms of the organization
Needs & Wants of Salespeople • Important if not using coercive power • Each person has unique in needs • Some respond to $ • Some to praise • Some to challenge • Although difficult, try to meet individual needs • May be limited by span of control
Goals and Objectives • Life is easier if salespeople’s needs align with organization’s goals and objectives • Can learn what salespeople want by asking • Workshops, interviews, surveys • Discover their long and short term goals • Show how individual goals can be achieved by pursuing company goals
Leadership Skills • Anticipation/Seeking Feedback, MBWA • Diagnostic Skills: Problem vs. Symptoms • Selection/Matching: Use right tool @ right time • Communication • Influence Strategies: Threats, Promises, Persuasion, Relationships, and Manipulation • Communication Mechanisms: Phone, Fax, Memo, Report, Intranet, Email, List-Serve, Cell, Voice Mail, etc.
Coaching & Ethics • Coaching • Role Model/Development • Outcome and Cognitive Feedback • Meeting Ethical/Moral Responsibilities • Immoral, Amoral, Moral Management • (See Exhibit 7.5, pg. 197)
Coaching 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
Approaches to Management Ethics I Immoral Management • Intentional and consistent management activity conflicting with what is moral (ethical). • Exploits opportunities for corporate gain. Cuts corners when it appears useful. • Seeks profitability and organizational success at any price. • Selfish. Management cares only about its or the company’s gain.
Approaches to Management Ethics II 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 III 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 self-interest. • Seeks profitability within the confines of legal obedience and ethical standards • Management wants to succeed but only within the confines of sound ethical precepts.
Ethical & Moral Responsibility • Code of Ethics • Personal • Corporate • Professional • Societal • Morally Questionable Managerial Acts • _________ : Cheating on expense report • _________ : Not acting as you should • _________ : Bribery, Price Fixing
Type Direct Effect Examples Nonrole Against the firm • Expense account cheating • Embezzlement • Stealing supplies Role Failure Against the firm • Superficial performance appraisal • Not confronting expense account cheating • Palming off a poor performer with inflated praise Meeting Ethical andMoral Responsibilities
Role Distortion For the firm • Bribery • Price fixing • Manipulation of suppliers Meeting Ethical andMoral Responsibilities Type Direct Effect Examples
Problems in Leadership • Conflicts of Interest - Boundary Spanners @ Risk • Chemical Abuse – Affects professionalism • Disruptive Personnel – Jerks, Mavericks, Apathy • Termination – Unpleasant, but necessary @ Times • Sexual Harassment – Remarks, Comments, Threats, Jokes, Physical/Visual Actions, Innuendos (Currently 1/3 of all EEOC complaints are for sexual harassment.)