Recruitment and Selection Process

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT a quality of effective salespeople?

Communication skills

Integrity

Physical strength (correct)

Determination

Which source is commonly involved in recruitment?

Social media networking

Random job fairs

Spontaneous applications

Internal promotions (correct)

According to Herzberg’s 2 Factor Theory, which of the following is classified as a hygiene factor?

Recognition

Responsibility

Achievement

Salary (correct)

Which selection aid focuses on assessing candidates’ behavioral responses?

Role Playing Signup and view all the answers

What theory suggests that sales managers' behaviors can influence the performance of their salespeople?

Likert’s Sales Management Theory Signup and view all the answers

Which factor is NOT considered under Maslow’s hierarchy of needs?

Psychological counseling Signup and view all the answers

What is the primary goal of motivational methods in sales management?

To ensure salespeople sell more effectively Signup and view all the answers

Which of the following methods is typically used in the recruitment process to assess mental capacities?

Psychological Tests Signup and view all the answers

What is a primary reason for motivating salespeople through rewards?

To convince them that improved performance is worthwhile Signup and view all the answers

Which compensation type focuses on maximizing earnings often at the expense of personal life?

Money orientated Signup and view all the answers

Which organizational structure is based on the geographic distribution of customers?

Geographical structure Signup and view all the answers

What is one method used to enhance the training of sales managers?

Include varied training methods Signup and view all the answers

Which type of salesperson performs just enough to keep their job?

Satisfiers Signup and view all the answers

What element is critical in sales compensation plans?

Performance-based incentives Signup and view all the answers

What is the key characteristic of the goal-oriented type of salesperson?

They seek recognition from peers. Signup and view all the answers

Which structure is NOT mentioned as a type of salesforce organization?

Performance-based structure Signup and view all the answers

Which type of salesperson is characterized by aiming to maintain their standard of living with a predetermined income?

Creatures of habit Signup and view all the answers

What incentive type primarily focuses on performance-driven pay such as commissions?

Commission base Signup and view all the answers

Which structure organizes sales teams based on the type of products sold?

Product specialization structure Signup and view all the answers

Which type of compensation plan is more focused on maximizing earnings potentially affecting personal life?

Money oriented Signup and view all the answers

What type of training is critical for improving sales management effectiveness?

Comprehensive management skills training Signup and view all the answers

Which category of salesperson performs at a minimal level just to keep their job?

Satisfiers Signup and view all the answers

Which motivational method involves setting performance targets or quotas?

Sales contests Signup and view all the answers

What is a key characteristic of the trade-off-er type of salesperson?

They balance work and leisure based on personal criteria. Signup and view all the answers

Which motivational factor emphasizes the nature of work and recognition?

Motivating Factors Signup and view all the answers

In the recruitment and selection process, which of the following is a method to assess sales candidates' interpersonal skills?

Interviews Signup and view all the answers

Which of the following qualities is most directly related to a salesperson's ability to overcome objections?

Resilience Signup and view all the answers

Which source of recruitment involves finding candidates from competitors?

Competitors Signup and view all the answers

Which aspect of motivation suggests that employees will behave based on their expected outcomes and the value they place on those outcomes?

Vroom’s Expectancy Theory Signup and view all the answers

Which quality is linked to a salesperson’s effectiveness in developing strong client relationships?

Empathy Signup and view all the answers

Which of the following is a key component of effective sales training as inferred from motivational models?

Encouraging efficient call planning Signup and view all the answers

What is a critical factor for the success of a sales team as suggested by Likert’s Sales Management Theory?

High performance goals set by managers Signup and view all the answers

What are two key qualities that can significantly influence a salesperson's effectiveness?

Communication skills and determination. Signup and view all the answers

According to Herzberg's theory, which factors contribute to employee motivation in sales roles?

Motivating factors such as achievement and recognition. Signup and view all the answers

What role do psychological tests play in the recruitment and selection process for salespeople?

They assess candidates' mental and emotional traits relevant to sales performance. Signup and view all the answers

What is the primary purpose of Maslow's Hierarchy of Needs in sales motivation?

To identify the levels of needs that salespeople must fulfill to achieve motivation. Signup and view all the answers

How does Vroom's Expectancy Theory explain the motivation of salespeople?

It suggests that motivation is based on expected outcomes and the value of those outcomes. Signup and view all the answers

What is one advantage of using role-playing as a selection aid in hiring salespeople?

It allows employers to observe candidates' real-life sales interactions and reactions. Signup and view all the answers

Identify one recruitment source that can provide experienced candidates for a sales position.

Competitors. Signup and view all the answers

What is the significance of integrity as a quality in salespeople?

Integrity builds trust and long-term relationships with clients. Signup and view all the answers

What are intrinsic and extrinsic incentives in the context of sales motivation?

Intrinsic incentives are internal motivations such as personal achievement, while extrinsic incentives are external rewards like commissions and bonuses. Signup and view all the answers

How does a commission rate influence sales performance?

A higher commission rate generally incentivizes salespeople to achieve better performance by directly linking effort to financial rewards. Signup and view all the answers

What role do meetings between managers and salespeople play in a performance-driven sales environment?

Meetings serve to set expectations, provide feedback, and motivate salespeople toward achieving their targets or quotas. Signup and view all the answers

What is the primary focus of organizations using a geographic structure in their sales force?

The primary focus is to allocate salespeople based on specific geographic areas to optimize customer coverage and relationship management. Signup and view all the answers

Identify two different types of salespeople based on their compensation approach.

Creatures of habit and goal-oriented salespeople are two types, with the former focusing on maintaining a steady income and the latter seeking recognition through achievements. Signup and view all the answers

What is the significance of training programs for sales managers?

Training programs are essential for improving management skills, ensuring effective leadership, and enhancing the overall performance of sales teams. Signup and view all the answers

What motivates money-oriented salespeople, and what might they sacrifice?

Money-oriented salespeople are motivated to maximize their earnings, often sacrificing family relationships, leisure, and even personal health. Signup and view all the answers

Explain the concept of the account-size structure in sales forces.

The account-size structure organizes sales teams based on the size and potential revenue of customer accounts to optimize resource allocation. Signup and view all the answers

Study Notes

Recruitment and Selection

Finding the right salespeople is important
This process is time-consuming and costly
Assessing effectiveness of the salesperson is difficult due to variable factors

Stages of Recruitment and Selection

Identify the need for salespeople
Define the job and its role
Advertising the role using various sources
Shortlisting and reviewing candidates
Screening and interviewing candidates
Making offers

Some Important Qualities of Sales People

Strong communication skills
Positive personality with strong business sense
Determination and motivation
Strong product knowledge
Ability to adapt to new situations and environments
Ability to communicate confidently and effectively
Initiative and resilience
Experience and education

Sources of Recruitment

Internal recruitment from within the company
External recruitment agencies
Educational establishments
Competitors
Unemployed
Other industries

Selection Aids

Psychological tests
Personality tests
Interviews
Role-playing scenarios

Motivation - Maslow's Hierarchy of Needs

Physiological needs such as food, water, and shelter
Safety and security needs such as job security
Social needs such as belonging and acceptance
Esteem needs such as feeling recognized for achievements
Self-actualization needs such as reaching full potential

Motivation - Herzberg's Two Factor Theory

Hygiene factors are outside of the job itself, and are related to job context and environment.
Motivating factors are related to job content and are intrinsic to the job itself.

Motivation - Vroom's Expectancy Theory

Effort is influenced by the perceived relationship between effort and performance
Performance is influenced by perceived relationship between performance and rewards
The value placed on rewards also affects effort and performance

Motivation - Likert's Sales Management Theory

Sales managers affect the behaviour of their salespeople because their own behaviours provide standards
Sales managers with high performance goals have high performing sales teams

Motivation - The Churchill, Ford and Walker Model of Salesforce Motivation

To increase sales, salespeople need to be convinced both that working harder or smarter will increase their sales, and that the rewards for better performance will be worthwhile

Motivation in Practice

Financial incentives include commission, bonuses, and salary increases
Non-financial incentives include recognition, promotions, and training
Intrinsic motivation comes from within the individual and is a desire to achieve or accomplish something
Extrinsic motivation comes from external sources such as money, rewards, or promotions

Training - Benefits

Enhanced skills and knowledge
Improved job performance
Increased productivity
Increased sales success
Improved morale and job satisfaction
Reduced turnover

Components of Training Program

On-the-job training by experienced salespeople
Role playing and simulation exercises
Classroom lectures and discussions
Sales presentations
Case studies

Methods of Training Sales Managers

Coaching by experienced managers
Mentoring by successful salespeople
Formal training programs
Self-directed learning activities

Topics Covered in Training Programmes for Managers

Strategic sales planning
Sales forecasting and budgeting
Effective sales management
Sales leadership
Motivation and training methods

Types of Salesforce Organization Structure

Geographical structure where salespeople are organized by geographical area
Product specialization structure organizes salespeople by product or product line
Industry-based structure organizes salespeople based on the industries they serve
Account-size structure organizes salespeople by the size of the accounts they manage

Types of Salespeople based on Compensation

Creatures of habit are satisfied with a consistent income
Satisfiers are content with just enough work to maintain their job
Trade-off-ers will balance work and leisure based on their personal preferences
Goal orientated salespeople focus on maximizing their achievement and recognition
Money orientated salespeople prioritize maximizing earnings

Types of Compensation Plans

Fixed salary
Commission based on sales revenue
Commission based on profit
Combination of salary and commission
Benefits such as health insurance, retirement plans, and paid time off

Recruitment and Selection

The process of selecting salespeople is important and costly due to the variability in their effectiveness and other determinants of success.
Various stages are involved in the recruitment and selection process, including sourcing, screening, interviewing, testing, and offering.

Qualities of Salespeople

Effective salespeople possess essential qualities: communication skills, strong personalities, determination, integrity, intelligence, ambition, motivation, product knowledge, adaptability, and empathy.

Sources of Recruitment

Potential candidates for sales positions can be sourced from internal company staff, recruitment agencies, educational establishments, competitors, other industries, and unemployed individuals.

Selection Aids

Various aids facilitate the selection process, including psychological tests, role playing, personality tests, and interviews.

Motivation

Maslow's Hierarchy of Needs: This theory outlines a hierarchy of human needs, starting from basic physiological needs moving towards self-actualization.
Herzberg's Two-Factor Theory: It differentiates between hygiene factors (external factors that prevent dissatisfaction, like pay and working conditions) and motivating factors (intrinsic factors that lead to satisfaction and motivation, such as achievement and recognition).
Vroom's Expectancy Theory: This theory suggests that motivation depends on the expectation of individual effort leading to desired outcomes and the value associated with those outcomes.
Likert's Sales Management Theory: It emphasizes the influence of sales managers on their teams, demonstrating that high-performing managers are likely to foster high-performing sales teams.
The Churchill, Ford, and Walker Model of Salesforce Motivation: This model highlights two key aspects: convincing salespeople that increased effort leads to better performance and rewarding those efforts with tangible benefits.

Motivation in Practice

Financial and non-financial incentives are used to motivate salespeople, including commission rates, target and quota-based rewards, promotions, and sales contests.

Training

Training programs for salespeople aim to enhance their knowledge, skills, and abilities, contributing to their overall effectiveness and achieving higher sales.

Components of Training Program

Training programs cover a range of topics: product knowledge, selling techniques, communication skills, customer service, negotiation, and objection handling.

Methods of Training

Various methods are employed for training, including on-the-job training, classroom lectures, simulations, role-playing, and mentoring.

Topics Covered in Training for Managers

Training programs for sales managers focus on topics like coaching, leadership, team building, performance management, strategy development, and motivating their teams.

Salesforce Organization Structure

Different types of salesforce organization structures, including geographic structure, product specialization structure, industry-based structure, and account-size structure, cater to specific organizational goals and needs.

Compensation Plans

Different types of compensation plans reward salespeople based on their individual performance and contribution, using methods like straight salary, commission-based pay, or a combination of both.

Types of Salespeople Based on Compensation

Salespeople are categorized based on their motivation and compensation preferences, including creatures of habit, satisfiers, trade-off-ers, goal-oriented individuals, and money-orientated individuals.

Recruitment and Selection

Finding and hiring salespeople is a costly and important process.
Variability in effectiveness can be influenced by factors like personality, communication skills, determination, intelligence, motivation, product knowledge, empathy, initiative, confidence, adaptability, and experience.
Sources of recruitment can be internal (from within the company), external (from recruitment agencies, educational establishments, competitors, other industries, unemployed) or a combination of both.

Stages in Recruitment and Selection Process

Identifying the need for a new salesperson
Defining the job description and specifications
Sourcing candidates
Screening applications
Conducting interviews
Assessing candidates through tests, role-playing, or other evaluation methods
Making the hiring decision
Onboarding and training the new salesperson

Motivation

Motivating salespeople is crucial for success.
Motivational theories include: Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, Vroom's Expectancy Theory, Likert's Sales Management Theory, and the Churchill, Ford and Walker Model of Salesforce Motivation.

Motivation - Maslow's Hierarchy of Needs

Individuals are motivated by a hierarchy of needs, starting with basic physiological needs and progressing to self-actualization.

Motivation - Herzberg's Two-Factor Theory

Hygiene factors (e.g., working conditions, pay, security) can prevent dissatisfaction but don't motivate employees.
Motivating factors (e.g., nature of work, achievement, recognition, responsibility) are necessary to create job satisfaction and drive performance.

Motivation - Vroom's Expectancy Theory

Individuals are motivated by their expectations of achieving desired outcomes, influenced by effort, performance, and rewards.

Motivation - Likert's Sales Management Theory

Sales managers' behaviors set standards that affect the behavior of their sales team.
High-performing sales teams often have managers with high performance goals.

Motivation - The Churchill, Ford and Walker Model of Salesforce Motivation

Salespeople are motivated by the belief that they can sell more by working harder or smarter, and that the rewards for better performance are worth the effort.

Motivation in Practice

Financial incentives (e.g., commission based on sales revenue, profit, commission rate, sales targets, quotas) can motivate salespeople.
Non-financial incentives (e.g., promotions, sales contests) can also be effective.
Understanding intrinsic motivation (e.g., a desire to learn, grow, and achieve) and extrinsic motivation (e.g., financial rewards) is crucial for motivating salespeople.

Training - Benefits

Training can improve sales performance, enhance product knowledge, refine communication skills, and boost overall productivity.

Components of a Training Program

The program should tailor to specific needs and include elements like product knowledge, selling skills, sales techniques, customer relationship management, and time management.

Methods of Training Sales Managers

Training methods can include classroom lectures, workshops, simulations, role-playing, and coaching.

Topics Covered in Training Programmes for Managers

Topics can include leadership, motivation, sales management techniques, negotiation, conflict resolution, team building, and coaching skills.

Organization and Compensation

The organizational structure and compensation plan can significantly impact salesforce performance.

Types of Salesforce Organization Structure

Geographical Structure: Salespeople are organized by geographic region.
Product Specialization Structure: Salespeople specialize in specific products or product lines.
Industry-based Structure: Salespeople focus on particular industries or customer segments.
Account-size Structure: Salespeople are responsible for specific account sizes.

Types of Salespeople based on Compensation

Creatures of habit: Focus on maintaining a consistent standard of living.
Satisfiers: Perform at a minimum level to keep their jobs.
Trade-off-ers: Balance work and leisure based on a personal ratio.
Goal-oriented: Value recognition and achievement, motivated by meeting sales quotas.
Money-oriented: Aim to maximize their earnings.

Types of Compensation Plans

Straight salary
Straight commission
Combination plans

Importance of Compensation Plans

Attracting and retaining high-performing salespeople
Encouraging desired behaviors
Aligning salesforce objectives with organizational goals

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the key stages and qualities essential for successful recruitment and selection of salespeople. This quiz covers topics such as identifying needs, advertising roles, and evaluating candidates. Understand the importance of effective sales recruitment in fostering a strong workforce.