motivation and compensation in sales

7/27/2019 motivation and compensation in sales

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Submitted To,

Prof. Manesh Handoo

Group Members:-

Rohen Goregaonkar

Aatish Kamble

Nilesh Ghanwat

Pawan Lad

Kamlesh Dubey


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MOTIVATION

Its an internal feeling and an energy within sales

person that drives them to behave in a certain way.

It can be both the form positive or negative motivation

Its effect on individuals are similar in nature by

different force.


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WHY MOTIVATION?

Self motivated 10% to

15%

Majority if sales people arenot adequately motivated

Companies financial

performance is depend on thesales persons achievement


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COMPENSATION

Monetary values inexchange of workperformance

systematic approach toprovide value to employeesin the exchange for workperformance

Integral part of human

resources managementwhich helps in motivatingemployee & organizationaleffectiveness


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MOTIVATIONAL THEORY

MASLOW THEORY


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HERZBERG TWO FACTOR THOERY


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ERG THEORY


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HOW TO FORM SALES COMPENSATION

PLAN

Examining the job description

Set up specific objective for sales people

Decide levels of pay/ compensation

Develop the compensation mix

Decide indirect payment plan

Pretest, administer, & evaluate the plan


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MAJOR COMPONENTS OF COMPENSATION

SYSTEMS

Basic wage and salary plan

Incentives

Employee benefits

Performance-based pay


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TYPES OF COMPENSATION

DIRECT (FINANNCIAL)

Wages/Salaries

Commissions, Bonuses, Gain sharing, Profit sharing

Commission/ Incentives

Fringe Benefits (health insurance, education

reimbursement, childcare, cafeteria plans,

employee discounts, personal use of a companyowned vehicle)


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INDIRECT (NON FINANCIAL)

Pay for time not worked ( vacation, sick leaves, holidays etc.)

Insurance coverage (medical, dental, life etc.)

Income security (pensions and disability)Service (education assistance, child care, recreations, discounts

etc.) Personal growth opportunities

Recognition

Job security

Sales training programs

Job enrichment

Supervision

Sense of accomplishment


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COMPENSATING THE SALES FORCE

Objectives of compensation plan from the point of view ofcompany :-

To attract, retain & motivate competent sales people

Motivating employee for higher productivity & performance

To be competitive yet economical

To be flexible for changes product, market, different salespotentials

Provoking healthy internal competition


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Objectives of compensation plan from the point of view

of sales people :-

To have both regular &incentive income

Recognition as a tool of selfesteem

Incentive income for aboveaverage performance

Work life balance

Planning for better qualityof life


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SOME INTERESTING COMPASRISON

The salary of top executive of public sector are

miserable compared to private sector.

SBI of India chief is paid 10% of HDFC Bank Managing

Director

BHELS chief gets about 10 to 12lakhs per annum asagainst ABBS MD is getting 40 to 50 lakhs


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Employee Stock Ownership Plan

(ESOP)

Provides a company's workforce with an ownership

interest in the company.

Employees with stock ownership, often at no up-front

cost to the employees

Shares are allocated to employees and may be held inan ESOP trust until the employee retires or leaves the

company


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ADVANTAGES & DISADVANTAGES OF ESOP

Ownership

Tax rebate

Retirement benefits


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TCS Employee Satisfaction(2003-04)

Parameter Industry average/ TCS

TCS Company Image 9.3/ 9.6

Job Content Growth 9.1 /9.9

Training 8.7 /10.0

Salary & Compensation 8.2/ 8.8

Appraisal System 8.8 /9.7

People In company 9.1/ 9.5

Overall Satisfaction 9.2/ 9.8


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motivation and compensation in sales