Introduction
Globe Limited has a number of problems facing her salespersons. One of these is the fact that these staff members know very little regarding warrant and thus perceive it as unnecessary. In a real sense, they cannot confidently convince a customer to buy a warranted product. They do not understand the benefits attached to purchasing a product that is warranted. As a result, it is hard to achieve the new target of selling 50% warranted products unless this problem is addressed. The other problem being faced is that the warranted products take longer before deals are closed and thus delaying their commissions for such products. In addition, there is limited time to convince a client to buy a warranted product bearing in mind that they are evaluated per the number of calls they answer per day. To address these problems, Globe limited should set in place a corporate reward program. The most important activities and characteristics for this program are addressed below in relation to theory.
Training
As of the moment, each of the fifteen teams has a supervisor. There is a need for these supervisors to be trained on how to handle those working under them. Correcting one when the target has not been him by letting them know that what they have done or have omitted is wrong is good but congratulating them when they are on the right is even better. As a result, there is a need to formulate a training program for the supervisors. Through training, the sales supervisors will gain skills and techniques that have been proven to inspire salespersons to reach a new level of success and productivity. These skills include communication skills as well as positive feedbacks that act as the driving force towards raising the level of productivity. Recognizing and appreciating people for their work motivates them to work harder (Kinder et al 2008, p.23). In addition, there is a need for the sales teams to be trained on group performance to strengthen the teams. This should go hand in hand with rewarding the best-performing teams. To enhance cooperation among team members, there should be team-building sessions where these teams can perform tasks outside their job description together. These can include holding games, going for retreats and camps as well as charity events. Through such, the sales supervisor has a chance to learn the strengths of each team member and maximize on that while helping them overcome their weaknesses. This is achieved through constructive communication and coaching (Kinder et al 2008, p.43).
In developing a training program, all the salespersons must be present or have representatives so that they can own the program. They should be made to clearly understand the current need and the objectives of the company. The salespersons in Globe Limited lack adequate information on the benefits of the warranty. If the company invests more in training this team on the long-run advantage of a warranty, they will gain confidence and be in a position to advise clients accordingly. The main reason why they do not concentrate on this is that they do not understand its importance. Information has been found to be one of the major contributors to raising self-esteem and building confidentiality among employees (Fisher 2000, p.32). According to the report, there is an 89% satisfaction level among those customers that bought warranted products. These customers are very important in influencing others to seek services from the same company. The likelihood of them going back to the same vendor is very high since they are satisfied with the services according to them. Theory suggests that customer satisfaction will not only ensure customer loyalty but will also attract more clients. This is because customers trust the confession of a fellow customer more than a word from the company or sales representatives (Merton 1998, p.104). Training should not only be about the sales techniques but also exercises, team building and encouraging personal development to ensure that each person is in a position to reach company goals as well as a level of personal satisfaction. The training should be held on a quarterly basis. This means the company should focus on 4 pieces of training per year. Seminars should be held every month when the training is not being held. The seminars should include an analysis of their performance on a monthly basis in order to rectify any mistake that may have been done. After training, this information should be made accessible to every employee for future reference.
Globe Limited should acknowledge the importance of having managers and leaders in the organization. According to Kouzes, & Posner (1987, p.13), a leader is one that sells the vision of an organization to others, hence energizing them to work towards that direction. He considers management and leadership as two necessary processes for any organization that aims at being effective but the two are different in nature and application. In this case, management is necessary for solving or adjusting problems, monitoring results, delegating duties and authority and designing the strategies to be followed. On the other hand, leadership ensures that desired change is achieved since it has the people at heart. The supervisors should have leadership qualities so as to motivate salespersons. The management team should carry out their role in ensuring that designed programs are successful through continuous evaluation and monitoring.
Mentoring
Since this was an entry position for all workers in the company, a mentoring program where old staff will be required to mentor new recruits is very necessary. This will not only cut down on training costs but will ensure retention of trained employees and they find personal fulfillment in socializing with others, developing their skills and having a sense of belonging. This is drawn from McGregor’s theory that self-actualization and esteem are needs that can never be completely satisfied. Employees can therefore be highly motivated through such higher-level needs. Employee’s quest for self-actualization and fulfillment drives him to work hard in achieving personal goals which are in line with organizational goals (Fisher 2000, p.57). This can be achieved through the adoption of a participatory approach in designing programs and setting organizational goals, performance appraisals as well as in delegation and decentralization of power. Maslow’s hierarchy theory identifies one of the basic needs as self-actualization and esteem. When these needs are being met, the internal drive activates one to behave in a certain way and towards a given direction. The need for growth and relatedness as explained by Herzeberg are met during training and mentoring (Kerzner 2003, p.76).
Sales incentives
Since sales persons depend on commissions to boost their basic salary, the commission given on the sale of the warranted products should be made slightly high than those of unwarranted products. This can be equalized by lowering the commissions on unwarranted products. Targets for the sale of warranted products should also be set for both the supervisors and the salespersons. This should go hand in hand with special merchandise and bonuses given to the teams that go beyond their targets. Since the company is aiming at making a high number of sales to improve its overall income, there is a need to concentrate on nonfinancial incentives to avoid incurring extra expenses. This would include better employment terms including medical covers, a good maternity leave, adequate rest and appreciation of the best performing teams (Kerzner 2003, p.47).
Offering a better base salary
The salespersons in Globe limited already have a base salary. However, this is not good enough to meet their basic needs. It is therefore very important to raise their base salary by 5%. This will be covered if the salespersons are well motivated. Another option is setting the base salary with reference to the sales margins. For instance, those who sell 50% and less of the targeted sales will receive the current base salary, those between 51 to 75% receive an extra 5% of initial base salary, and those between 75 to 100% an extra 10% and those whose sales are above the target will get 115%. Every sales person will be aiming to make the highest number of sales. This assumption is in line with theory X which assumes that people work for money and security and not necessarily because they like working (Stewart 1991, p.11). In this regard, reinforcement theory is applied where manipulating consequences control one’s behavior. According to McGregor, a satisfied need does not motivate. This means that there is more to motivating salespersons in Globe Limited than just raising their base salary. However, raising their base salary is important for them to meet their physiological needs and the need for development (Rad & Levin 2003, p.60). A combination of all these factors will definitely result in Globe limited meeting her target.
Leading by Example and Creating a Positive Working Environment
The beginning point in motivating the salespersons in Globe Limited is drawing a clear vision and action plan which acts as a guide to where they are headed or what they aim at achieving. One of the most important aspects in motivating the salespersons is giving positive feedback (Rad & Levin 2003, p.17). Every leader in the company should lead by example. This means that the managers, as well as the supervisors for all the teams, should also work hard to make and close some deals. This way, they are in a position to identify the challenges faced by salespersons and address them adequately.
Creating a positive working environment is another important action that should be undertaken in Globe Limited as per the moment, the salespersons are evaluated by the number of calls they answer in a day. This creates a situation whereby each is determined to receive the highest number of calls regardless of the quality of conversation with the customer. This does not only limit the acceptance of warranted products but of other products as well. The salespersons may tend to think that a client is wasting their time, therefore, communicating with them in a rush, a factor that may result in some clients failing to close a sale with them. Instead of evaluating them in this manner, they should be evaluated from the number of sales made and customer feedback (Kerzner 2003, p.30). Since the sales position is an entry position, the company should issue a promotion based on customer satisfaction by the service of the salesperson. Proper communication is very important. Any issue that is to be communicated to the salespersons should be done via mails or face to face communication. With this regard, the salespersons should be encouraged to read their mails every day. In addition, salespersons should be given a chance to express their gratitude or grievances (Deresky 1997, P.76). This can be enhanced by creating avenues for feedback.
In the analysis, explaining to the client about the warranty can consume a lot of time especially due to the fact that some may not be aware of this. It is upon the company to educate clients about it. This can be achieved through the use of social websites such as Facebook, Twitter, you-tube, yahoo and the company’s website. The customers will be informed and will even be the ones to ask for the warrant. In addition, they should reduce the paperwork involved by determining only the most valuable information. This can be achieved by having want paper for each product where all the information is typed apart from the serial number, name of the client, receipt number and the unique identification of the client. This way, the salespersons will not consume a lot of time filling the warrant. This should go hand in hand with the adoption of a fasted mode of communication whereby the company will have to update its website such that it can give immediate human responses to the client.
Corporate Reward Program
The program to be implemented is a corporate reward program aimed at improving customer service, developing teamwork, building morale and retaining employees’ trust. This program will be quota-based with training being conducted after every four months for the first three years. To begin with, all stakeholders will be involved in developing long-term and short-term goals for the program. This is to ensure that they own the program and that set goals are realistic and attainable. Seminars will be held once in four months and a team-building retreat every last month of the quota. During the retreat, the best performers will be rewarded. Teams will engage in competition such as games, plays, songs and modeling so as to meet the social needs of belonging and to strengthen team relations (Messner 2009, p.9). This will also build good relations among salespersons hence motivating them to cooperate in achieving organizational goals. The features for this program include training, holding seminars, giving rewards, appreciation, promotions and improving communication (Kerzner 2003, p.43).
In conclusion, a combination of all mentioned actions will definitely lead to success. Continuous evaluation is necessary to identify any problems arising with the implementation of new strategies. After the evaluation, arising issues should be addressed through a collaborative approach. Globe Limited managers should be focused on if success is to be achieved.
Reference List
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