Copyright 2001 by Harcourt Inc All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved.
PART III STAFFING THE SALES TEAM Copyright © 2001 by Harcourt, Inc. All rights reserved.
CHAPTER 8 PLANNING FOR AND RECRUITING SUCCESSFUL SALESPEOPLE Copyright © 2001 by Harcourt, Inc. All rights reserved.
LEARNING OBJECTIVES A successful sales force is determined by who is hired; this is the end result of sales human resource management. This chapter should help you understand: q What sales human resource management is and what its key relationships are. q The importance of planning for sales personnel needs. q What people planning and employment planning are. q What recruitment means and why it is so important. q The recruiting process: what it is, who does it, and where recruits are sought. Copyright © 2001 by Harcourt, Inc. All rights reserved.
WHAT IS SALES HUMAN RESOURCE MANAGEMENT? Sales human resource management (SHRM) refers to activities undertaken to attract, develop, and maintain effective sales force personnel within an organization. Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 8. 1 ACTIVITIES INVOLVED IN MANAGING A SALES FORCE’S HUMAN RESOURCES Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 8. 2 FROM INTERVIEW TO TERRITORY: A LONG TIME Copyright © 2001 by Harcourt, Inc. All rights reserved.
What’s a salesperson worth? A salesperson’s worth depends on what the salesperson costs to the company and on the profits from the products he or she sells. Copyright © 2001 by Harcourt, Inc. All rights reserved.
Goal: Hire above-average performers. Selecting someone who will become an aboveaverage performer improves the overall performance of the sales group. A successful hire is someone who performs above average. Copyright © 2001 by Harcourt, Inc. All rights reserved.
WHO DOES THE PLANNING? • National sales manager. • Field sales managers. • Top management. Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 8. 3 SALES FORCE PEOPLE-FORECAST MODEL: FACTORS TO CONSIDER WHEN DETERMINING HOW MANY TO HIRE Copyright © 2001 by Harcourt, Inc. All rights reserved.
DETERMINING THE TYPE OF PERSON FOR THE JOB A job analysis refers to the formal study of jobs to define specific roles or activities to be performed in sales promotions. The three steps in the job analysis are to: 1. 1. Examine the total sales force and each job, and determine how each job relates to other jobs. 2. 2. Select the jobs to be analyzed. 3. 3. Collect the necessary information through observation of what people actually do in the jobs, interviews of people in the jobs, and questionnaires completed by job holders. Copyright © 2001 by Harcourt, Inc. All rights reserved.
JOB DESCRIPTIONS AND SPECIFICATIONS FOR SUCCESSFUL PEOPLE Job specifications convert job descriptions into the qualifications. Copyright © 2001 by Harcourt, Inc. All rights reserved.
TABLE 8. 1 FORMAL JOB DESCRIPTION, TRANSTEX AUTOMOTIVE SUPPLY CORPORATION Position: Sales Representive Reports to: District Manager NATURE OF JOB Responsible for developing new accounts and reaching profitable sales goals in assigned territory. PRINCIPAL RESPONSIBLITIES Meeting total sales goals for product lines and individual products. Maintaining an average of six daily sales calls. Maintaining an average of one monthly product presentation to wholesalers. DIMENSIONS Develop strong promotional support from retail and wholesale customers. Plan effective territorial coverage resulting in high sales/call ratio. Inform management of activities by submitting daily and weekly call and sales reports to district manager. SUPERVISION RECEIVED General and specific tasks are assigned for each sales period. Every two months work with supervisor for a minimum of one day. SUPERVISION EXERCISED None Copyright © 2001 by Harcourt, Inc. All rights reserved. Organizational Unit: replacement Parts Date: ( When Job Was Described)
WHAT ARE JOB SPECIFICATIONS FOR SUCCESFUL SALESPEOPLE? • Intelligence • Education • Personality • Experience • Appearance Copyright © 2001 by Harcourt, Inc. All rights reserved.
TABLE 8. 2 SELECTED CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE 1. High energy level 8. Good physical appearance 2. High self-confidence 9. Likable 3. Need for material things 10. Self-disciplined 4. Hardworking 11. Intelligent 5. Requires little supervision 12. Achievement oriented 6. High perseverance 13. Good communication skills 7. Competitive Copyright © 2001 by Harcourt, Inc. All rights reserved.
PROFILING THE SUCCESSFUL CANDIDATE Success in a company may include the following: • Intelligence • Prospecting ability • Ability to create a follow-up system • Ability to influence people’s decisions and opinions • Ability to cultivate long-term client relationships • Ability to negotiate contracts and prices Copyright © 2001 by Harcourt, Inc. All rights reserved.
PROFILING THE SUCCESSFUL CANDIDATE continued • Ability to determine prospects’/customers’ needs (hot buttons). • Computer skills. • Selling ability. • Conceptual ability. Copyright © 2001 by Harcourt, Inc. All rights reserved.
RECRUITMENT’S PURPOSE Recruitment is the set of activities and processes used to legally obtain a sufficient number of individuals in such a manner that the recruits’ and the sales force’s best interests are taken into consideration. Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 8. 4 MAJOR INFLUENCES AND COMPONENTS OF SALES RECRUITMENT Copyright © 2001 by Harcourt, Inc. All rights reserved.
LEGAL INFLUENCES Equal Employment Opportunity Commission (EEOC) is the principal governmental agency responsible for monitoring discriminatory practices. Copyright © 2001 by Harcourt, Inc. All rights reserved.
TABLE 8. 4 ANTIDISCRIMINATION LAWS AND ORDERS, UNITED STATES OF AMERICA Copyright © 2001 by Harcourt, Inc. All rights reserved.
TABLE 8. 4 ANTIDISCRIMINATION LAWS AND ORDERS, UNITED STATES OF AMERICA continued Copyright © 2001 by Harcourt, Inc. All rights reserved.
TABLE 8. 5 INTERVIEWING CAN AND CANNOT DO’S Copyright © 2001 by Harcourt, Inc. All rights reserved.
RECRUITMENT OF SALESPEOPLE To be an effective recruiter, a sales manager must have the answer to several questions, including: • How many people do I need to recruit? • Who does the recruiting? • Where do I find recruits? • How can I develop a qualified pool of applicants? • How can recruiting programs be evaluated? Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 8. 5 RATIO AND DAYS FROM SALES JOB ANNOUNCEMENT TO REPORTING TO WORK Copyright © 2001 by Harcourt, Inc. All rights reserved.
SOURCES OF RECRUITS – WHERE ARE THEY FOUND? INTERNAL SOURCES Internal recruitment sources come from inside the company: • Current Employees. • Promotions. • Transfers. Copyright © 2001 by Harcourt, Inc. All rights reserved.
EXTERNAL SOURCES • Walk-ins. • The Internet. • Employment agencies. • Internships. • Radio and television. • Colleges and universities. • Newspaper advertisements. • Competitors. • Telephone-in advertisements. Copyright © 2001 by Harcourt, Inc. All rights reserved.
REALISTIC JOB PREVIEWS HELP BOTH COMPANY AND RECRUITS A “realistic job preview” means that a person is given pertinent information about the job without distortion or exaggeration. Copyright © 2001 by Harcourt, Inc. All rights reserved.
Companies can expect these results from realistic previews: • Newly hired salespeople have a higher rate of job survival than those hired using traditional previews. • Salespeople hired indicate higher satisfaction. • Managers can set the job expectations of new salespeople at realistic levels. • Realistic previews do not reduce the flow of highly capable applicants. Copyright © 2001 by Harcourt, Inc. All rights reserved.
THE QUALIFIED APPLICANT POOL The organization should find out: • How candidates obtain information regarding job availability. • What attracts people to the job. • What the likes and dislikes are about the job. • Why the person took the job. Copyright © 2001 by Harcourt, Inc. All rights reserved.
THE BOTTOM LINE Sales human resource management (SHRM) is comprised of two elements: people planning and employment planning. Developing a successful sales team requires the planning of personnel needs and analyzing the sales jobs to achieve more efficient use of human resources. Job analysis is the definition of specific roles or activities to be performed. The goal of managing sales human resources is to hire aboveaverage performers. In order to hire the right person for the job, there must be a recruitment strategy. Copyright © 2001 by Harcourt, Inc. All rights reserved.
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