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1 Motivation 2 Discussion Questions What is the best way to motivate a salesforce? How can you systematically design a motivation system? 3 Three Major Determinants of Motivation Environmental conditions The firm’s management policies compensation supervision task characteristics Personal characteristics of the salesperson 4 Motivation Session Objectives understand the components of motivation through the expectancy-value model relate management tools to components of the expectancy-value model, to use in influencing motivational levels consider how management style and the use of various “tools” influence motivation 5 Motivation Session Outline Locus of Control and Motivation Expectancy-Value Model of motivation what is it? Who cares? (implications of the model) Glengarry Glen Ross & the impact of the sales manager on motivation The impact of role stress 6 Locus of Control and Motivation Locus: External vs. internal attributions Stable vs. unstable attributions Examples: External Stable: External Unstable: Internal Stable: Internal Unstable: 7 The Expectancy-Value model Why are people motivated to initiate a task to choose a certain effort level to persist in a task Expectancy Principle: salespeople choose a level of effort based on the expected payoffs of alternative effort levels Most popular model of motivation (at least among sales force researchers) 8 Expectancy-Value Model in Notation M j =E j x V j where: M j =motivational drive to achieve level j of performance (e.g. sales, number of new accounts etc.) E j =beliefs about the effort to performance linkage: perceived chances of achieving level j of performance given effort V j = overall subjective utility (valence or value) of achieving level j of performance 9 Examples: E j V j M j Level of Performance 80% 60 48 If j=$200,000 in sales 40% 100 40 If j=$300,000 in sales 10% 80 8 If j=$400,000 in sales 10 Valence/Value: V j Valence is a composite of the utility you derive from the suboutcomes (consequences) that accompany achieving level j of performance These might include: more pay, promotion, liking & respect, lack of leisure time, personal growth security, sense of accomplishment, recognition, hurting personal life Outcomes can have negative utility/valence Obviously the list could be longer & vary across individuals [...]... part) Glengarry Glen Ross what is the impact of management style on the components of the expectancy value model? What motivational “tools” are used? How do these tools impact motivation in the short-term? Over the long term? How do these tools impact extrinsic motivations? Intrinsic motivation? 15 Motivators Positive Motivators Commission Recognition Acceptance Respect Trust Achievement Pride Negative... (expectancies) and needs/wants (values) Different people can exhibit the same level of motivation for very different reasons Nice vocabulary to talk about motivation 13 Implications for How to Motivate No reward is motivating if it is out of reach (low expectancy) Raising the goal (performance level j) often depresses motivation Introduces negative outcomes Depresses expectancies Can motivate by trying... Approach Authoritative “management” Emphasis on rewards the manager gives out: ⌧pay ⌧promotion ⌧recognition of achievement Leading to: Motivation to work harder: intensity, persistence 26 Non-traditional atmosphere Participate leadership Emphasis on intrinsic rewards & motivation people work because selling satisfies them with: challenges pride in serving customers pride in skills “Warm Culture” informal... Conflict Perceived Role Ambiguity 22 Perceived Role Conflict: you feel that the demands of your role partners are incompatible To make one happy, you have to upset another (perceived) Upshot: misery & poor motivation 23 Perceived Role Ambiguity: You feel you don’t have the information to cope with your job demands don’t know how to do a task don’t know what role partners expect don’t know how your performance . to use in influencing motivational levels consider how management style and the use of various “tools” influence motivation 5 Motivation Session Outline. What motivational “tools” are used? How do these tools impact motivation in the short-term? Over the long term? How do these tools impact extrinsic motivations?