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Theory of Motivation and Literature Review of Sales Management

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Motivation has been widely and in-depth examined for a great figure of old ages. It has been in the Centre of involvement for many Fieldss due to the fact that it is a manner of determination, understanding and explicating the grounds why people choose to act in a certain manner and the possible results that they expected from certain behaviours and actions. In peculiar, as Locke and Latham ( 2004 ) reported many industrial and organisational ( I/O ) psychologists have focused specifically on “ work motive ” at least since 1930.

( Locke and Latham, 2004 ) There are legion definitions of motive, both wide and specific, depending on the facet which is being viewed from. As Locke and Latham ( 2004 ) stated: “ the construct of motive refers to internal factors that impel action and to external factors that can move as incentives to action. The three facets of action that motive can impact are way ( pick ) , strength ( attempt ) , and continuance ( continuity ) . ” ( Locke and Latham, pg 388, 2004 ) Furthermore, they claimed that motive can act upon both the skill of people ‘s accomplishments and abilities and the manner and the grade in which these accomplishments and abilities are exploited.

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( Locke and Latham, 2004 )


There are infinite motive theories that present and support assorted and sometimes even contradictive statements sing the factors, which result in actuating the employees. One of the oldest and possibly more extremely criticized method sing motive was the Frederick ‘s Taylor ( 1911 ) Scientific Management attack. Harmonizing to this attack, Huczunski and Buchanan ( 2007 ) stated employees are rewarded in a fiscal manner based on the productiveness and public presentation degrees. In other words, Taylor viewed employees as “ coin-operated ” , who are entirely motivated by fiscal inducements. Taylor ‘s attack has been extremely disapproved on the evidences that it leaves out important facets of motive such as accomplishment, acknowledgment and occupation satisfaction and in general, it oversimplifies the complexness of the human nature and its demands. ( Huczunski and Buchanan, 2007 )

As it was mentioned supra, there is a great figure of motive theories that have been expressed during the past old ages. However, these theories can be divided in two major classs: the content and the procedure theories. Bassett-Jones and Lloyd ( 2005 ) pointed out that content theories, which among others have been presented by Abraham Maslow and Frederick Herzberg et Al. ( 1959 ) take as granted a higher and more complex interaction between internal and external factors and they have researched the conditions and the factors which lead to the response of the persons to several types of internal and external inducements. On the contrary, the procedure theories, two of which have been presented Vroom ( 1964 ) and Locke and Latham ( 1990 ) , take into consideration the process through which the internal elements of each individual may take to different results and behaviours. ( Bassett-Jones and Lloyd, 2005 )


At this point, it would be utile to analyse briefly these theories. First of wholly, harmonizing to Ramlall ( 2004 ) Maslow ‘s demands hierarchy is consisted of five chief set of demands such as biological, safety, love, respect and self-actualization demands, which are considered to be the basic demands of every individual. ( Ramlall, 2004 ) This theory supports that each person is motivated to carry through each set of demands given that the old set has been to the full or partially satisfied. Although, Maslow ‘s theory has been criticized and has been characterized as a “ societal doctrine ” alternatively of a motive theory, it has affected many direction patterns such as wages policies and occupation design. ( Huczunski and Buchanan, 2007 )

The 2nd celebrated content theory was developed by Herzberg et Al. ( 1959 ) and it introduced the differentiation between two classs of factors. In peculiar, Herzberg et Al. ( 1959 ) concluded that the intrinsic factors, which are related to the content of the occupation, such as accomplishment, acknowledgment and duty consequence in higher degrees of motive and they are called “ incentives ” . On the contrary, the extrinsic factors, which are related to the context of the occupation such as wage, publicity and company policies affect the degrees of the employee ‘s dissatisfaction but can non act upon his motive. ( Ramlall, 2004 ) As Locke and Latham ( 2004 ) clarified Herzberg ‘s motive theory chiefly dealt with the causes of work satisfaction and the possible ways that a occupation can be designed in order to increase the employee ‘s satisfaction and later his motive degrees. ( Locke and Latham, 2004 )

Procedure THEORIES

Procedure theories differ from content theories at a critical point, which is the component of individualism in each pick and the societal influence. They fail to take into history the fact that each individual thinks, makes determinations and Acts of the Apostless in a different manner from the others and they assume that people react in a cosmopolitan manner. ( Huczunski and Buchanan, 2007 ) One of the most important procedure theories is Vroom ‘s anticipation theory. Harmonizing to Robbins ( 1993 ) as cited in Ramlall ( 2004 ) every act is driven by the power of the outlook that the peculiar act will ensue in a specific result and the result ‘s desirableness. Additionally, Steers ( 1983 ) as cited in Ramlall ( 2004 ) stated that the equation from which motive consequences from is consisted of the employee ‘s belief that his attempt will take to a specific public presentation and the desirableness of the results which will be created by the peculiar public presentation. ( Ramlall, 2004 ) It can be clearly seen that, Vroom expressed his theory based on the premise that people choose to act after “ witting picks among options ” . ( Ramlall, 2004 ) In other words, motive is an single pick which is made after measuring the possible behaviours and their consequences.

Apart from Vroom ‘s anticipation theory, it is besides worthy to advert the goal-setting theory introduced by Edwin Locke and Gary Latham ( 1990 ) . As Huczunski and Buchanan ( 2007 ) defined goal-setting theory as motive theory in which it was stated that a individual ‘s motive is affected by the degree of trouble and specificity of the ends that he has to run into and by the feedback which is provided to him that allows him to be cognizant of his success of failure. Harmonizing to Klein et Al. ( 1999 ) , the chief construct of this theory is that the more hard the end the higher the degree of motive. They besides stated that: “ Committedness to specific and hard ends ” is an indispensable factor which influences motive. ( Klein et al. , 1999 )

Overall, from what has been described above we can see that the chief difference between content and procedure theories of motive is that the former does non acknowledge any difference between the manner that persons perceive things and are motivated and they take as given that people have the same demands and are motivated by the same things. Perversely, the procedure theories have been analyzed based on the fact that motive is created through an single process during which each individual evaluates the best alternate action for him and it is besides stimulated by marks and purposes with a minimal grade of trouble and specificity. The purpose of this research is to look into which motive techniques are considered to be more appropriate in the gross revenues sector and in peculiar, in a life insurance company. In the following subdivision of the research the relevant literature will be critically discussed by ab initio showing the literature sing motive of the sales representative and how is used by the gross revenues directors. Furthermore, the literature mentioning to motive in the insurance industry will be presented although it is limited and has non been examined in deepness.


The Importance of the Gross saless Manager Role

In the peculiar portion of the research, the chief involvement will be on the literature sing the motive of sales representative by their gross revenues directors. As Tyagi ( 1985 ) claimed: “ Leadership behaviour plays a critical function in heightening sales representative work motive. ” ( Tyagi, pg 77, 1985 ) It could be said that, whether a sales representative is motivated or non depends extremely on his director and the techniques that he implements. In the same context, as Rich ( 1997 ) pointed out: “ Successful sales representative are non born, they are made ” . ( Rich, pg 319, 1997 ) Harmonizing to Rich ‘s ( 1997 ) research, the construct of “ function mold or leading by illustration ” has been chiefly disregarded in the gross revenues direction literature. However, he argued that due to the nature of merchandising, which is complex and challenging, the gross revenues director should move as “ a function theoretical account ” for the sales representative in footings of offering to the latter a counsel sing the manner he should cover with the ambiguities of a gross revenues procedure. ( Rich, 1997 ) Frank Pacetta, a successful gross revenues director in Xerox, as cited in Rich ( 1997 ) pointed out that the “ personal illustration ” is really powerful. In peculiar, he stated that the most efficient manner for making productive sales representative is by demoing to them what it should be done. ( Rich, 1997 )

Although “ function mold ” has been examined under the range of magnetic and leading direction theories, Rich ‘s purpose was to carry on a research in order to determine whether it influences positively the sales representative ‘ s public presentation. The consequences of his research showed that a gross revenues director who behaves as a “ function theoretical account ” will heighten the trust between himself and his sales representative and that sweetening will accordingly ensue in increased occupation satisfaction and public presentation. ( Rich, 1997 ) In other words, it could be said that sales representative will be motivated and run in a more effectual manner if they are managed by a director, who non merely manages them but he besides shows to them how to work by moving as one of them. Furthermore, worthy of mentioning is that Corcoran, Petersen, Baitch and Barrett ( 1995 ) as cited in Rich ( 1997 ) conducted a big scale study among a big figure of salespeople, gross revenues directors and gross revenues executives in which they found out that “ coaching ” is one of the most of import mean that an organisation can utilize in order to impact the public presentation of its gross revenues work force. ( Rich, 1997 ) They defined training as the process through which “ professional attitudes and behaviours are modeled ” . Furthermore, they clarified that a director who coaches, aims at “ keeping good resonance with the gross revenues squad and furthering unfastened communicating, coaction, creativeness, inaugural and appropriate hazard taking ” . ( Rich, pg 326, 1997 ) Undoubtedly, “ coaching ” is strongly connected with function mold and the creative activity of bonds of trust between the gross revenues director and the sales representative. ( Rich, 1997 )

Assorted Aspects of the Job Design and Their Effectss at the Motivation of Salespeople

The fiscal wagess have ever been considered as an of import facet of every type of work. Particularly, in the gross revenues industry the fiscal inducements are regarded as a powerful tool in actuating the sales representative. Steinbrink ( 1978 ) as cited in Churchill et Al. ( 1982 ) stated that: “ compensation is the most of import component in a plan for the direction and motive of a field gross revenues force. ” ( Churchill et al. , pg 114, 1982 ) Churchill et Al. ( 1982 ) reported in their research that the gross revenues motive literature is in understanding with the perceptual experience that the fiscal wagess are the primary and basic incentive of “ gross revenues attempt ” . On the contrary, they besides pointed out that: “ sole trust on wage as the basic incentive has been challenged on both theoretical and empirical evidences. ” ( Churchill et al. , pg 114, 1982 )

At this point, it is worthy of adverting that in Lawler ‘s ( 1971 ) research as cited in Churchill et Al. ( 1982 ) was documented that payment might be less important to person that is extremely paid in comparing to person that is lower paid. ( Churchill et al. , 1982 ) In assorted researches ( Centers and Bugental 1966, Kahn 1958, Porter 1961 and Ronan 1970 ) , it was supported that a possible ground explicating why a individual ‘s valency for money is negatively correlated with the sum of his payment, would be that payment is valued less when employees reach higher places which are normally well-paid. ( Churchill et al. , 1982 ) With respect to the above mentioned, Churchill et Al. ( 1982 ) commented that the newer the sales representative is, the higher the possibility that he would be motivated by wage on the evidences that get downing degrees do non normally result in high satisfaction sing wage. They besides stated that as the sales representative is rewarded for his attempt through fillips, committees and wage rises, his satisfaction with wage additions. Consequently, the valency for wage will be reduced and pay will no longer be an equal incentive. So, other types of incentives should be enacted in order to avoid the diminution of the sales representative ‘s motive. ( Churchill et al. , 1982 ) Last, Oliver ( 1977 ) conducted a study in a life insurance company in which it was found that there was a positive correlativity between the sales representative ‘s valency for money and his age and a negative correlativity between his valency for money and his satisfaction with wage. ( Churchill et al. , 1982 )


The Background of the Company

Due to the fact that the peculiar research has an explorative nature, the informations were collected through empirical research. The research took topographic point in a Grecian life-insurance company. The peculiar company is an attached house of a transnational insurance company. It has been runing in Greece since 1964 and has a big figure of subdivisions which are spread all over Greece. It has a broad assortment of life insurance plans that can be summarized in the undermentioned three classs: Life, Accident & A ; Health every bit good as Pension Plans. The research was targeted at the gross revenues directors of several subdivisions and more specifically the involvement of the research was chiefly focused on their positions and experiences in footings of the possible ways that the agents are motivated since they enter the company and during all the phases of their callings.

The Type of Research

The research scheme was qualitative research due to the fact that as Bryman and Bell ( 2007 ) pointed out: “ qualitative research can be construed as a research scheme that emphasizes words instead than quantification in aggregation and the analysis of informations. ” ( Bryman and Bell, pg 28, 2007 ) To be more precise, the research inquiries which apply on motive theories can non be addressed by utilizing quantitative informations such as measurings, per centums and diagrams. Sing the qualitative research, it should besides be pointed out that, the qualitative research ‘s epistemic place is interpretative since it gives precedence to the “ apprehension of the societal universe through an scrutiny of the reading of that universe by its participants. ” ( Bryman and Bell, pg 402, 2007 ) Additionally, its ontological place has been defined as constructionist, which indicates that “ societal belongingss are results of the interactions between persons. ” ( Bryman and Bell, pg 402, 2007 )

The Qualitative Method

The qualitative method which was selected was semi-structured interviews. As Bryman and Bell ( 2007 ) indicated: “ the interview is the most widely employed method in qualitative research. ” ( Bryman and Bell, pg 472, 2007 ) The ground why semi-structured interviews were considered to be more appropriate is due to the flexibleness that they offer. Specifically in semi-structured interviews, the interviewer uses an “ interview usher ” which is consisted of “ a series of inquiries which are more general in their frame of mention ” in comparing to those that are being used in structured interviews. ( Bryman and Bell, pg 213, 2007 ) Furthermore, as clarified by Bryman and Bell ( 2007 ) : “ the interviewer has some latitude to inquire farther inquiries in response to what are seen as important answers. ” ( Bryman and Bell, pg 213, 2007 ) In other words, semi-structured interviews provide more freedom to the interviewees to show their ain sentiments and portion their experience by adverting real-life illustrations and state of affairss. By utilizing this method, some points which may hold slipped the head of the interviewer will be mentioned by the interviewee during the treatment.

The Interview Process

The interviews were taken from the 21st of June until the 25th of June. The interviews were tape recorded and lasted for 30 proceedingss on norm. The work force, which was interviewed, was consisted of the main selling officer who is responsible for the general motive guidelines of the company in footings of the motive techniques which are implemented by the gross revenues directors. Furthermore, an interview was taken by the director who is responsible for the web of gross revenues and its support in footings of fiscal wagess. Interviews were besides taken by 5 gross revenues directors each of which have many old ages of working experience and are responsible for pull offing and actuating about 7-8 agents. Furthermore, it is worthy to adverting that each gross revenues director has been an agent himself before achieving the place of gross revenues director. Last, 2 out of 4 of the most successful agents of the company were interviewed.

The chief inquiries of the interviews were based on the assortment of techniques that the gross revenues directors use in order to actuate their gross revenues work force. To be more precise, the interview ‘s construction was formed by chief inquiries sing the importance of the fiscal inducements through all phases of an agent ‘s calling, the necessity of utilizing different motive techniques depending on the agent ‘s age, the most appropriate motive techniques in order to keep the high productiveness degree of an agent or in order to actuate him into accomplishing even higher public presentation criterions and in conclusion, which motive techniques are considered to be more appropriate in order to heighten the productiveness of low performing artists.

Cite this Theory of Motivation and Literature Review of Sales Management

Theory of Motivation and Literature Review of Sales Management. (2016, Nov 15). Retrieved from https://graduateway.com/theory-of-motivation-and-literature-review-of-sales-management/

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