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 FOLLOW ME!!

Supervision  Routine, Day-to-Day control  PART of Leadership, not all of it

Variables Related to Performance and Job Satisfaction  Task-Specific Self-Esteem Linked to improved performance and job satisfaction  Organizational Commitment A psychological bond to the organization Demonstrated by behavior over time  Formalization The extent to which work activity is directed by rules, regulations, & commitment  Work Alienation Psychological separation from the activities of the job  Job Involvement  Strong attachment of the salespeople to the job itself

LEADERSHIP "Our chief want is someone who will inspire us to be what we know we could be." Ralph Waldo Emerson ( ) American writer and activist

Three Leadership Models 1)Leader-Member Exchange (LMX) a) Manager and Salesperson influence each other b) Unique relationships with each dyad 2)Transformational Leadership a)Leaders: charismatic, inspirational, mission driven b)Change Agent: new ideas, new methods 3)Behavioral Self-Management (BSM) a)Self-Imposed planning, behavior, evaluation, rewards & punishment. b)Salespeople can work w/o constant supervision, more enthusiastic by being in control

Factors Affecting Sales Manager’s Leadership Effectiveness 1) Power: Manager/salespeople/others 2) Situational 3) Needs & wants of salespeople 4) Goals & Objectives of Salespeople/Company 5) Manager’s Leadership Skills

Power  Expert Power: Knowledge Based  Referent Power: Similarity, Friend, Role-Model  Legitimate Power: Role, Position  Reward Power: Ability to give reward for action  Coercive 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 right time  Communication  Influence Strategies: Threats, Promises, Persuasion, Relationships, and Manipulation  Communication Mechanisms: Phone, Fax, Memo, Report, Intranet, , 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)

 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 Coaching The continuous development of salespeople through supervisory feedback and role modeling. Suggestions for affective coaching include:

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 Non Role Acts: Cheating on expense report Role Failure: Not acting as you should Role Distortion: Bribery, Price Fixing

Meeting Ethical and Moral Responsibilities NonroleAgainst the firm Expense account cheating Embezzlement Stealing supplies TypeDirect EffectExamples Role Failure Against the firmSuperficial performance appraisal Not confronting expense account cheating Palming off a poor performer with inflated praise

Nonrole

Role Failure

Meeting Ethical and Moral Responsibilities TypeDirect EffectExamples Role Distortion For the firm Bribery Price fixing Manipulation of suppliers

Problems in Leadership The Constant Criticizer

Problems in Leadership  Conflicts of Interest - Boundary Risk  Chemical Abuse – Affects professionalism  Disruptive Personnel – Jerks, Mavericks, Apathy  Termination – Unpleasant, but Times  Sexual Harassment – Remarks, Comments, Threats, Jokes, Physical/Visual Actions, Innuendos (Currently 1/3 of all EEOC complaints are for sexual harassment.)