Review of Professional Management- A Journal of New Delhi Institute of Management

Open Access Open Access  Restricted Access Subscription Access

Impact of Compensation Plans on Salesforce Motivation


Affiliations
1 Department of Business Administration, Aligarh Muslim University, Aligarh, U.P., India
 

Salesforce motivation is one of the most important factors affecting the success of sales organizations. It has been found out that among various organizational factors, compensation plan used by the company has an important bearing on salesforce motivation. Various studies have analyzed the impact of compensation plans on salesforce motivation but the findings are inconsistent. As salesforce motivation is important for organizations in the competitive environment, it becomes important to clarify the inconsistencies in findings. The objective of this study is two-fold. First, it provides a review of studies analyzing the impact of compensation plans on salesforce motivation. Second, it suggests ways for increasing salesforce motivation. The review of studies shows the superiority of salary based compensation plans in influencing intrinsic motivation positively. Implications and future research directions are also suggested.

Keywords

Salesforce Motivation, Compensation Plans, Salary, Commission, Incentives.
User
Notifications
Font Size

  • Babakus, E., Cravens, David, W., Johnston, M., and Moncrief, William, C. (1996). Examining the role of organizational variable in the salesperson job satisfaction model. Journal of Personal Selling and Sales Management, 16( 3), 33-46

  • Basu, A.K., Lal, R., Srinivasan, V., Staelin, R. (1985) Salesforce Compensation Plans: An Agency Theoretic Perspective Marketing Science4(4),267-291 https://doi.org/10.1287/mksc.4.4.267

  • Brown, S.P., Evans, K.R., Mantrala, M.K., and Challagalla, G. (2005). Adapting Motivation, Control, and Compensation Research to a New Environment. Journal of Personal Selling and Sales Management, 25( 2), 155-167

  • Coughlan, A.T., and Sen, S.K. (1989). Salesforce compensation: Theory and managerial implications. Marketing Science, 8( 4), 324 - 342

  • Cravens, D.W., Ingram, T.N., LaForge, R. W., & Young, C. E. (1993). Behavior-based and outcome-based salesforce control systems. Journal of Marketing, 57(4), 47–59

  • Cron, W. L., Dubinsky, A. J., and Michaels, R. E. (1988). The Influence of Career Stages on Components of Salesperson Motivation. Journal of Marketing, 52( 1), 78-92

  • Deci, E. L., Ryan, R. M., and Koestner, R. (1999). A Meta-Analytic Review of Experiments Examining the Effects of Extrinsic Rewards on Intrinsic Motivation. Psychological Bulletin, 125( 6), 627-668

  • DelVecchio, S., and Wagner, J. (2011). Motivation and monetary incentives: A closer look. Journal of Management and Marketing Research, 7 (1) 1-13.

  • Hastings B., Kiely, J., and Watkins, T. (1988). Sales Force Motivation Using Travel Incentives: Some Empirical Evidence. Journal of Personal Selling and Sales Management, 8( 2), 43-51

  • Ingram, T. N., and Bellenger, D. N. (1983). Personal and organizational variables: Their relative effect on reward valences of industrial salespeople. Journal of Marketing Research, 20( 2), 198-205

  • Kelly, H. H. (1967). Attribution theory in social psychology. Nebraska Symposium on Motivation. D. E. Levine. Lincoln, University of Nebraska. 15: 192-240.

  • Oliver, R. L., and Anderson, E. (1994). An empirical test of the consequences of behaviour and outcome based sales control systems. Journal of Marketing, 58(4), 53-67

  • Oliver, R. L., and Anderson, E. (1995). Behaviour and outcome based sales control systems: evidence and consequences of pure – form and hybrid governance. Journal of Personal Selling and Sales Management, 15(4), 1-15

  • Pullins, Ellen Bolman (2001). An Exploratory Investigation of the Relationship of Sales Force Compensation and Intrinsic Motivation. Industrial Marketing Management, 30 (4), 403-413

  • Sergio, R., Ruiz, S., and Munuera, J. L. (2005). The Influence of the Compensation System and Personal Variables on a Salesperson's Effective Listening Behavior. Journal of Marketing Management, 21 (1-2), 205-230

  • Shipley, D. D., and Kiely, J. A. (1986). Industrial Salesforce Motivation and Herzberg's Dual Factor Theory: A UK Perspective. Journal of Personal Selling and Sales Management, 6( 1), 9-16

  • Sujan, Harish (1986). Smarter vs harder: An exploratory attributional analysis of salespeople’s motivation. Journal of Marketing Research, 23(1), 41-49

  • Tyagi, Pradeep K. (1990). Relative Importance of Key Job Dimensions and Leadership Behaviors in Motivating Salesperson Work Performance. Journal of Marketing, 49 (3), 76-86.

  • Uduji, J. (2013). Towards an Instrumentality Theory of Salesforce Motivation: A Pragmatic Model. European Journal of Business and Management, 5(20 ). 213-225

  • Walker Jr., O. C., Churchill Jr., G. A., and Ford, N. M. (1977). Motivation and Performance in Industrial Selling: Present Knowledge and Needed Research. Journal of Marketing Research, 14(2), 156-168


Abstract Views: 789

PDF Views: 258




  • Impact of Compensation Plans on Salesforce Motivation

Abstract Views: 789  |  PDF Views: 258

Authors

Zoha Fatima
Department of Business Administration, Aligarh Muslim University, Aligarh, U.P., India

Abstract


Salesforce motivation is one of the most important factors affecting the success of sales organizations. It has been found out that among various organizational factors, compensation plan used by the company has an important bearing on salesforce motivation. Various studies have analyzed the impact of compensation plans on salesforce motivation but the findings are inconsistent. As salesforce motivation is important for organizations in the competitive environment, it becomes important to clarify the inconsistencies in findings. The objective of this study is two-fold. First, it provides a review of studies analyzing the impact of compensation plans on salesforce motivation. Second, it suggests ways for increasing salesforce motivation. The review of studies shows the superiority of salary based compensation plans in influencing intrinsic motivation positively. Implications and future research directions are also suggested.

Keywords


Salesforce Motivation, Compensation Plans, Salary, Commission, Incentives.

References





DOI: https://doi.org/10.20968/rpm%2F2017%2Fv15%2Fi2%2F163916