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24 Cards in this Set
- Front
- Back
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What was the problem in Robert Allen's move in jobs in the Lawford case?
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Robert Allen’s job moved from being an order taking salesperson to a consultative, problem solving salesperson. In this new job he made a large number of strategic errors.
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Why did Robert Allen make so many strategic errors in the Lawford case?
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he lacked the ability to recognize that he was wasting opportunities and behaving in ways that were not appropriate for the situation.
o This ability could have been acquired through training. o Robert Allen failed because of poor training. o Even the most outrageously expensive training program would have cost less than the cost of this failure, and the skill that Rober Allen acquired would have stayed with him— possibly grown with experience—for a long while. |
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What is the morale of the story in the Lawford case?
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while increasing the difficulty of a salesperson’s task, empower him or her through training to have the level of ability that matches the task.
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What is the theory behind training?
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Arguably the most important principle in sales management
is: When the economy gets depressed and it is hard to sell invest in training. Those who do will have a more able sales force and, since the task is more difficult, ability needs to be higher. |
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What can be trained and what is the morale behind training?
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Can train for adaptability—similar social styles, expert system software, and role playing.
o Can train for problem finding or better task selection—monk problem. o Can train for Global Tacit Knowledge; reacting in a crisis. o Can train for creativity. o Can train for EQ. o MORALE: It is possible to improve the skill of salespeople considerably...often this is necessary. |
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What did the Nordstrom case focus on?
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What Nordstrom was in fact looking for was people in FLOW o This is the seeking of challenge somewhat harder than
current abilities. o The evolving self perspective of flow is that people who make the choice of investing in developing their abilities and progressively seeking more and more challenging tasks, evolve their abilities. |
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What are learning organizations and why are they effective?
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Learning organizations are ones in which there are no winners or losers just learners.
• People in learning organizations, people with learning goals, tend to work not just harder but also smarter. With the goal to prove one’s merit smart work is restricted. |
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What are the three other sources on motivation other than the Nordstrom case?
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Who stole my cheese is a book suggesting that people don’t learn because they fear change.
• No more excuses suggests that not attempting to justify failure enables learning • Feeling a fake is about people claiming more ability than they actually have and fearing failure when given the tasks they have been asking for |
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Explain the Olympia case study
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This is a case study about a sales organization considering moving from 100% salary to a mixture of salary and commission, because their competitors follow the mixed compensation model and because they feel their salespeople are taking advantage of the pure salary compensation.
o On analysis it appears that only one salesperson is taking advantage. • o Moving everyone to a plan in which some may earn less as a result may de-motivate and so backfire. |
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What are the lessons/morales to be garnered from the Olympia case study?
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The morale is that commissions do not substitute for poor leadership. Salesperson Carmody needs to be managed better.
o A subsidiary lesson is that goodwill between salesperson and clients is facilitated by goodwill between sales management and salespeople; compensation perceived to be fair is an important element of this goodwill. |
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Explain compensation theory
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Salespeople work for recognition, personal growth...for
reasons other than money. o When paying salespeople by incentive, it turns out that sometimes smaller value incentives are more motivating. The reason for this is that incentives that are seen as symbolic of achievement are motivating while incentives that are seen as controlling are not. o The norm in the US for salary to commission payment tends to be 75:25. o While a sales organization saves by moving from a straight salary to a combination system with its lower performers, it loses with its higher performers. So, if the sales force in general performs well, it is cheaper for the sales organization to skew payment towards salary. o Steinbrink spells out contingencies when more commission and more salary are appropriate. |
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Explain the Kramer case on leadership
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o Bob Marsh does exceptionally well with his first two supervisors but is considered less able by the supervisors who follow and is eventually fired.
o It demonstrates many every day leadership problems, such as inconsistency, too much criticism and too little praise, evaluating salespeople on what they are the worst at not on important elements of their job,.. o But it also demonstrated the need for effective salespeople to sell not just externally but internally...to manage tough leaders not just tough customers. |
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What is the lesson to be learned from the Kramer case?
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Nevertheless, the lesson to learn for good leadership, beyond the everyday negatives, is that it is important to empower salespeople to do their external job well and, in contrast, it is important not to dis-empower them—destroy them.
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Explain the waters case on leadership
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o Ray Burnett, a very successful salesperson, in Waters resigns
• • after a relatively bad year. o His supervisors feel he provided his customers with excellent service by doing too much of the work himself and eventually burnt out. o Had they “got into the trenches” (Harvey Mackay) with Ray Burnett they may have felt otherwise and recognized his frustration from not being supported enough—a lack of empowerment. |
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Explain the Whole Foods case on leadership
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o Leads through organizing and rewarding team effort o Salary disparity from top to bottom is less than most other
similar firms. o Is considered among the better firms to work for o And has lower turnover. o Suggests: empowerment plus “social” support is a good way to lead. o It goes with the major theme of the one minute manager: everyone is a potential winner. |
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Explain the case of working smarter, not harder in the leadership theory
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Invest in the development of your employees and
respect their decisions Allow them to make and then learn from their own mistakes. Create a support group that is peer based not hierarchical Requires that employees respond favorably to this One Minute Environment |
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Explain transformational leadership in leadership theory
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Creates and sells a vision, contrasts transactional
leadership which is focused on administering rewards and punishments against set standards The key problem is a poor vision could destroy the organization |
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Explain Meaning Attributive Leadership
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Helps subordinates make sense—interpret—of their experiences. This was not the style of the One Minute Jack McGregor style manager.
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Explain Pygmallion Leadership
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Give feedback to subordinates that they are better than
average This is a self-fulfilling prophesy Potential problems: not everyone can feel above average and too high expectations may lead to frustration when not accomplished. |
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Explain coping with poor leadership and one minute leadership
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o Coping with Poor Leadership
In the event of poor leadership, quite common, it is important for subordinates to learn to cope. Such as coping with a bully. o One Minute Leadership Includes negative feedback about behavior ACCOMPANIED by positive feedback on character |
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Explain the Pilgrim Territory Mangement case
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o If “privilege” has been a prevalent basis for dividing up sales
territories, the overall “district” performance can improve by a fairer distribution. o Dave Thomas, the new District Manager, assumed this and found that announcing his intentions for a fair distribution led to morale problems. o Why? Should have been quite the opposite. • • o Analyzing the performance of his salespeople carefully, he could have discovered that only two of his salespeople, one a veteran and the other a rookie, were a problem; and that their problem performance could have been alleviated through assigning inactive accounts, accounting for the high travel time being in a rural territory created, and considering the lower motivation from being underpaid relative to others. o If territories needed to be reassigned, it should come after these actions. |
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What are the morales to be garnered from Pilgrim?
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Morale: do your math before announcing policies o Morale 2: Employees may or may not consider fairness most
symbolic of respect; giving veterans privilege may be considered more respectful, giving tougher territories to more able salespeople, along with more compensation, may be considered more respectful. |
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Explain the Syntex Labs case
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Deals with two questions: optimal salesforce size per
territory, and optimal allocation of salespeople to different territories. o Suggests that as salespeople are added to territories there is a diminishing return. o Managers can estimate the diminishing return curve, by customer type, but find it hard to use this knowledge to make their decisions. o Decision calculus, based on marginal revenue=marginal cost at optimal, helps them achieve this. o Notwithstanding the sophistication of decision calculus, several considerations, such as competitive reaction, tends to be left out. o Managers are likely to chose to use the support decision calculus provides in incremental stages. |
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Explain the territory management theory
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The flow idea suggests that territories should be made more challenging in conjunction with more training; empower salespeople to handle incremental territory difficulty.
o Because sales management recognizes that managing relationships is a key goal, territory reassignment needs to carefully consider the cost of separating salespeople from their relationship partners and building new partnerships. |
