1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (1) 8 Sales Management Leadership and Supervision Module 8 Sales Management Leadership and Supervision

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (2) 8 What is the difference between leadership and supervision? Leadership –The use of influence with other people through communications processes to attain specific goals and objectives Supervision –The day-to-day control of the salesforce under routine operating conditions

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (3) 8 A Proposed Model of Salesforce Socialization Realism Job Satisfaction Initiation to Task Job Involvement/ Commitment Congruence Resolution of Conflicting Demands at Work Performance Role Definition Task Specific Self -Esteem Recruiting/Selection Objectives Training Objectives Salesperson Outcomes Job Outcomes (Figure 6.1)

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (4) 8 Variables Related to Performance and Job Satisfaction Task-Specific Self-Esteem –Linked to improved performance and job satisfaction Organizational Commitment –Either, a psychological bond to the organization, or –Demonstrated by behavior over time Formalization –The extent to which work activity is directed by rules, regulations, and commitment. More formalization may lead to less stress. Work Alienation –An individual's psychological separation from the activities of the job Job Involvement –Strong attachment of the salespeople to the job itself

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (5) 8 Contemporary Views of Sales Leadership Leader-Member Exchange (LMX) Model Transformational Leadership Behavioral Self-Management (BSM)

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (6) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management (Figure 8.1) Situation Needs Leadership Skills Power Salespeople Others Power Sales Manager Goals & Objectives Sales Manager’s Leadership Effectiveness

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (7) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Power and Leadership Expert Power Referent Power Legitimate Power Reward Power Coercive Power Power is in the eye of the beholder... Five types of power which may be present in interpersonal relationships:

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (8) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Situational Factors What makes an effective leader? Trait Approach –A body of research which has tried to identify the personality traits of an effective leader Behavior Approach –A body of research which has attempted to catalog behaviors associated with an effective leader Contingency Approach –A body of research which has explored the interaction between situational and other factors Situational Factors –Time constraints, the nature of the task, and the history and norms of the organization

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (9) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Needs and Wants of Salespeople Must find a balance between the needs of salespeople and the needs of the sales manager/organization

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (10) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Goals and Objectives "Life Planning"

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (11) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Leadership Skills Anticipation and Seeking Feedback –Listening, empathizing, and maintaining contact with customers and salespeople Diagnostic Skills –Being able to determine and address a problem or opportunity instead of the symptoms Selection and Matching –Must select the appropriate leadership response to match the situation

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (12) 8 A Leadership Model for Sales Management A Leadership Model for Sales Management Leadership Skills Influence Strategies –Threats Relating the failure to accomplish a desired behavior to a specific punishment –Promises Better than threats at motivating desired behavior –Persuasion Persuasive messages must be rational and reasonable, however, expert and referent power bases are necessary to make them effective...Why? –Relationships (2 types) Based on Referent Power Based on Legitimate Power –Manipulation Circumstances are controlled to influence behavior

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (13) 8 Selected Leadership Functions Selected Leadership Functions Coaching Sales manager provides guidance and feedback as close as possible to the occurrence of an appropriate event related to developing salespeople’s skills, attitudes, or behaviors –Recency - coach near appropriate event (e.g., sales call) –Repetition - coach before and after sales call –Feedback Outcome Feedback –Information on whether the desired outcome is achieved Cognitive Feedback –How and why the desired outcome is achieved –Better to use cognitive feedback

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (14) 8 Selected Leadership Functions Selected Leadership Functions Planning and Conducting Integrative Meetings Overall purpose is to unite the salesforce in the quest for common objectives. Integrate functions such as: –Training –Strategic Planning –Motivational Programs –Recognition of Outstanding Performers –Recreation and Entertainment Communication technology increasingly allows off-site participation

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (15) 8 Selected Leadership Functions Selected Leadership Functions Approaches to Management Ethics (Exhibit 8.5) Immoral Management Amoral Management Moral Management Code of Ethics

1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (16) 8 Problems in Leadership Conflicts of Interest Chemical Abuse and Dependency Problem Salespeople: A Disruptive Influence –Lone Wolf High involvement/low organizational commitment –Corporate Citizens Low involvement/high organizational commitment –Institutional Stars High involvement/high organizational commitment –Apathetics Low involvement/low organizational commitment Termination of Employment Sexual Harassment