sdm-performance evaluation.ppt

8/14/2019 sdm-performance evaluation.ppt

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SALESMANAGEMENT

Performance Analysis


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Purposes of Salesperson

Performance Evaluations

1. To ensure that compensation and other reward

disbursements are consistent with actual

salesperson performance

2. To identify salespeople that might be promoted

3. To identify salespeople whose employment

should be terminated and to supply evidence to

support the need for termination


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4. To determine the specific training and

counseling needs of individual salespeople and

the overall sales force

5. To provide information for effective human

resource planning

6. To identify criteria that can be used to recruit

and select salespeople in the future


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7. To advise salespeople of work expectations

8. To motivate salespeople

9. To help salespeople set career goals

10. To improve salesperson performance


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Principles of evaluating sales personnels

performance

Principles applicable to sales evaluation differ largely depending upon the factorsgoverning a company at the micro level or an industry business environment at a macro

level.

Some are elucidated here.

1. Pragmatic

2. Transparent

3. Realistic

4. Positive in spirit

5. Informative

6. Participative

7. Objective

8. Flexible

9. Specific

10. Cost Effective

11. It should be a means and not an end


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Methods of evaluating sales personnel

performance

Ranking Method: It is the simplest method of rating system. In this

method we give the rank to every employee on the basis of their job

performance.

Graphic Rating Scale: In this method the management places a

checkmark on a form next to the word or phase describing the degree of

merit for each of several traits such as quality of work, quantity of work,

dependability, attitude and so worth. A major drawback of Graphic rating

is that the words like excellent and poor mean different things to

different people.

Forced dis t r ibut ion Method:In this method rated are distributed along

the given scale and fixed percentages of employees are assigned to the

best and worst ends of the scale and to the middle bracket.

Check List Method:In this method a list of statement is prepared which

describe the performance of an employee. Each statement have a

definite scale rate.


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Cont.

Crit ical incident Method: In this method every

supervisor prepare a record notebook in which

all the successful and poor performance of an

employee is mentioned.

Field Review Method: In this method the

supervisors are interviewed by an expert

belonging to the personnel department. The expert

questions to the supervisor to obtain information

about each employee


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DEVELOPINGANDMANAGINGSALES

EVALUATIONPROGRAMME

Setting standardsof performance

Setting Actualperformance

Comparing actualperformance with

standards

Taking correctiveactions


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STEP-1

SETTINGSTANDARDSOFPERFORMANCE

Guidelines for performance criteria

1. Measurable

2. Practical

3. Relevant4. Discriminating

5. Stable


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1. SETTINGPERFORMANCESTANDARDS

Quantitative Performance Standards:

a) Quotas:

Quantitative objective expressed in absolute terms

The terms can be Value or product units or combin. Quotas specify desired levels of accomplishment for sales

volume, gross margin, net profit, performance of non selling

activities

Realistic & Attainable


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QUANTITATIVEPERFORMANCESTANDARDS

c) Territorial Net Profit or Gross Margin Ratio: Needs for selling a balanced line & for considering relative

profitability (Different Products or Individual Customers)

Emphasis on more profitable products & devote more time

& effort to potential accounts Neglect the solicitation of new accounts or performance f

new products


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f) Call Frequency Ratio:Dividing the number of sales calls on a particular

class of customers by number of customers in that

class

Directs the selling effort to more profitable

accounts

g) Calls per day:

Standards for calls are set up individually fordifferent territories, taking into account territorial

differences as to customer density, road & traffic

conditions and competitor's practices


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h) Order Call Ratio:

Effectiveness of sales person in securing orders

Dividing number of orders secured by number of callsmade

I) Average Order Size:

Controls the frequency of calls on different accounts Different standards for different sizes & classes of

customers


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j) Non Selling Activities: Standards for non selling activities such as obtaining dealer

displays, cooperative advertising contracts, training

distributors personnel, and goodwill calls on distributors

customers


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QUALITATIVEPERFORMANCECRITERIA

a) Job Factors: Product Knowledge

Awareness of customer needs

Relationship with customers

Service Follow Up

b) Personal Factors:

Punctuality

General Attitude Dress & Appearance

Cooperation

Adaptability


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STEP-2

RECORDINGTHEACTUALPERFORMANCE

Field Sales Reports

To provide data for evaluating performance

To help the sales person plan the work

To record customers suggestions & complaints

To gather information on competitors activities To report changes in local & business conditions

To keep mailing list updated for promotional & catalogue

materials

To provide information requested by marketing research


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STEP-3

EVALUATION- COMPARISONAGAINSTACTUAL

Issues Involved:

Differences in Individual Territories

Sales Potentials

Impact of Competition Personalities of Sales Personnel & their

Customers

Comparison of Both qualitative & quantitativedata


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DETERMINANTSOFSALESFORCE

PERFORMANCE

Internal factors External factors

Motivation Environmental factors

Skill level Organizational factors

Job satisfaction Sales management functions

Role perception

Personal factors

Ego drive

Empathy


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STEP-4

TAKINGACTION

No Deviations/Low Significance deviations:

No Action Required

Highly significant Deviations:

Adjust Performance to Standards

Revise the policy or plan or strategies

Lower or raise the objectives or standards

Documents

sdm-performance evaluation.ppt