The main goal of the sales manager at FRAM oil filters is to equip their salespeople with necessary skills and qualities in order to improve the efficiency and quantity of distributing FRAM products. Their objective is to encourage distributors to stock and purchase larger quantities of FRAM products. To achieve this aim, it is important for the sales manager to explore motivational strategies recommended by motivation experts.
When motivating individuals, such as salespeople, managers and supervisors should prioritize rewards that align with individual performance. They should also create clear connections between effort, performance, and rewards while establishing specific procedures for evaluating individual performance levels. Through my research on motivation theorists, I have discovered that there is no universal approach to motivation. Recognizing the distinctiveness of each person is crucial.
Frederick Winslow Taylor proposed the notion that workers, including salespeople, are driven by monetary compensation. In order to attain full authority, he developed the concept of scientific management. Taylor posited that workers require constant supervision, as most individuals do not derive pleasure from their work. By subdividing larger goals into smaller tasks, workers could enhance their expertise and proficiency in these specific tasks. Consequently, Taylor suggested that workers should be remunerated based on the quantity of units they manufactured or sold (or accounts they established).
This led to increased effort from “salespeople” to maximize sales and profits. Elton Mayo proposed a different perspective, suggesting that “salespeople” could be further motivated if their social needs were fulfilled in addition to financial incentives. Mayo emphasized the importance of treating “salespeople” as individuals rather than mere cogs in a production line or a group of sales robots, which Taylor overlooked. Mayo discovered that improved communication between sales managers and their teams, coupled with increased manager involvement and a focus on teamwork, was effective in motivating “salespeople”.
When it comes to motivating their salespeople, FRAM could combine both Taylor’s and Mayo’s theories. Taylor focuses on pay and control factors, while Mayo emphasizes social factors, taking a warm and paternal approach. The certificates for SONY products align with Taylor’s theory of pay motivation. However, if FRAM were to adopt Mayo’s theory of social needs and establish effective communication with their salespeople (earning trust, loyalty, etc.), they would undoubtedly witness a more motivated sales team that feels they contribute more to the organization than just increasing sales and profits.
There are two primary workplace motivation strategies: “push” and “pull.” The “push” strategy uses threats, fear, and strict targets to motivate employees. In contrast, the “pull” approach employs incentives such as bonuses, inspiring company vision presentations, and team-building games to foster motivation.
There are various ways to motivate a salesperson, and financial incentives play a significant role. Nevertheless, it is important to acknowledge that money alone cannot ensure happiness and motivation in the workplace. Salespeople from Western cultures generally prioritize achievement, relationships, and power as their primary motivations. Frederick Herzberg’s two-factor theory of motivation shares several similarities with Maslow’s ‘Hierarchy of Needs’.
According to Herzberg, organizations have the ability to incorporate certain factors that can motivate their salespeople to work harder. These factors, known as ‘The Motivators’, are related to the actual job and can include opportunities for career growth and development, as well as the level of enjoyment or interest the work provides. These motivators can stem from intrinsic motivation, meaning they come from within the salesperson themselves. On the other hand, there are also factors that can have the opposite effect and demotivate salespeople. Herzberg referred to these factors as ‘The Hygiene factors’.
A survey was conducted with 79 operations managers from 55 companies to examine the factors influencing the use of microcomputers in the workplace. The study focused on three motivators: perceived usefulness, perceived ease of use, and perceived enjoyment. Perceived usefulness represents extrinsic motivation, while enjoyment represents intrinsic motivation. The study also considered hygienic/extrinsic factors, such as workplace safety and pay rates, which are important but are not necessarily motivating factors as they are typically expected by employees.
Herzberg considered financial factors as hygiene factors, contrasting Taylor’s belief that money would incentivize people to work harder for higher earnings. FRAM’s incentive scheme would have motivated salespeople in numerous non-financial ways, aligning with Maslow’s theory. Apart from the satisfaction of establishing new accounts and receiving high-quality SONY products, the salespeople would experience a sense of job enrichment knowing their contribution led to a significant increase in sales. A savvy sales manager would also acknowledge this by providing encouragement and praise, which carries significant value in the mind of a salesperson and costs nothing.
Every individual has unique needs and preferences, and there are multiple ways to inspire and motivate them. For instance, when an employee receives a company car or a salary increase, or in this scenario, the opportunity to acquire high-quality SONY products, they will be naturally motivated and inclined to exert additional effort for the organization.
Abraham Maslow proposed a theory that included five levels of human needs. These needs form a hierarchy, where fulfillment at each level motivates a counter staff member. According to Maslow, a salesperson will only be motivated by the opportunity to satisfy the next higher need in the hierarchy once a lower-level need has been fully met.
As each set of needs is met, the following set becomes more prominent in influencing behavior. In the case of FRAM, their goal was to encourage counter staff at distributors to promote their products instead of competitors. By applying Maslow’s hierarchy to the counter staff, it can be observed how the incentive scheme caters to their various needs.
Although the salary for a member of a firm’s counter staff may not be very high, it still provides for basic physiological needs such as food and clothing. Additionally, the success of the incentive scheme is crucial for ensuring job security for counter staff, as their distribution company has partnered with FRAM. This partnership aligns with the safety level in the hierarchy.
The chance to use the certificates for SONY merchandise is relevant to the social aspect of the hierarchy. Individuals aspire to gain acceptance from their closest relationships (family) and be significant to them. They can present the SONY products as presents to their loved ones. Additionally, their self-confidence and social standing will improve as they receive more certificates, leading to a higher reputation and greater prestige among their colleagues at work.
In the end, individuals will realize their own self-actualization when they receive certificates for SONY products, as it signifies that they are representatives of a prestigious company like FRAM and skilled salespeople. However, it is important to broaden our comprehension of behavior beyond inner psychological needs and consider the broader social context in which behavior occurs.
According to popular belief, advertising and sales promotion are most effective during the introduction and growth stages of the life-cycle. However, as the market matures and eventually declines, it is advised to focus more on personal selling. FRAM’s objective was to motivate their salespeople, distributors, and counter staff to ensure that products reach customers at the end of the chain. Additionally, they wanted their staff to promote the use of FRAM products over competing alternatives to attract a larger customer base.
Personal selling offers the advantage of facilitating interactive communication, which is more nuanced yet also riskier compared to one-way communication methods like advertising. By implementing the incentive scheme, they bypassed the time-consuming and expensive task of developing an advertising campaign.
The incentive scheme implemented by FRAM had a positive impact on their staff, leading to increased motivation and improved sales abilities. This resulted in the employees becoming advocates for the company, which proved to be invaluable. Additionally, the scheme not only encouraged employees to work harder, but it also enhanced the brand image for customers. Furthermore, it was a cost-effective method of advertising FRAM products. The case study reveals that this incentive scheme was a successful investment, as it only accounted for 4% of the £7 million increase in sales over a three-month period.
In my opinion, advertising on television or in a car magazine may not yield the same results as getting firsthand advice and approval of a product from a trusted sales person. While these methods are popular for showcasing brands and products to the target audience, they can be expensive and may not align with an organization’s budget. Moreover, if an advertising campaign is created, customers may interpret the message in unintended ways. On the other hand, when counter staff and salespeople give their endorsement, there is no ambiguity.
A clear and concise message is conveyed: “Invest a small amount now, or face much larger costs in the future.” In summary, I believe the incentive program between FRAM and Sony was highly successful in enhancing the skills of their salespeople and counter staff by employing various motivating factors, resulting in significant financial gains for their organization. However, in conducting my research, I discovered that motivational theories may be somewhat outdated in relation to today’s society.
Motivating individuals to work in the modern era using theories developed in the 19th and early 20th centuries is likely to be impractical. Following an examination of significant events in the past century’s management history, the authors aim to extract the wisdom that will shed light on the path to motivation for current and future managers. The central idea conveyed is that managers should reassess the obsolete motivational approaches employed to uphold performance expectations within organizations.
Today, sales managers should have the flexibility to adapt different theorists’ methods to the current business landscape. They have the option to merge effective theories and customize them to suit their specific organization or sales team, considering the unique nature of each organization.
