The Effect Of Motivational Policies And Practice On Sales Force In Nigeria Banking Industry

THE EFFECT OF MOTIVATIONAL POLICIES AND PRACTICE ON SALES FORCE IN NIGERIA BANKING INDUSTRY (A CASE STUDY OF FIRST BANK NIGERIA PLC NNEWI)

COMPENSATION AND MOTIVATIONAL POLICIES

Hall (1974) states that no matter how carefully management may forecast, formulate policies and plan elaborate organization structures, the success of its planning is ultimately in the hands of the employees at all levels. Management must therefore not only plan; it must also lead and inspire those it relies to implement policy and make the organization work.

According to Obiesie (2014), motivation is the driving force that activates behaviour and provides purpose to it. May be nature appreciates and direction, be it in cash or in kind. Therefore, in anticipation of these cash or kind. Therefore, in sales people are encouraged to give in their best so as to help the organizations achieve its cooperate objectives. The organizations sales force will do this when their morale is high. Therefore any organization that wants to keep its good and goal-getting sales force should try to boost their morale in order to retain them and at the same time attract other good ones by means of a great motivational programme.

REASONS FOR MOTIVATING SALES FORCE

Okafor (1996) states that despite that managers do motivate their entire staff adequately if they want a desired  result to be obtained, it is a known fact that, the percentage of incentives directed at the sales force is much more longer than those given to the other category of staff. Some reasons have been addressed as being responsible for this management behaviour. Why do managers tend to motivate sales force than the other employee? This is as a result of the following reasons:

  1. Sales job is a lonely one; and on most occasions, the sales rep feels rejected for the fact that he cannot net in a sale on most sales calls.
  2. For most of the periods, the sales force is always away from home on official duties in this than means he is not present always to take care of family problems.
  3. The tendency of apportioning a sales force to a particular sales territory and almost same customers makes their sales calls to be less interesting. This tends to lower the sales force morale. It then means that in order to maintain the sales force morale in his/her work that we need to adequately motivate and stimulate such an individual.

METHODS OF REMUNERATING AND REWARDING SALES FORCE

According to Okafor (1996) in order to be able to attract quality sales force, motivate and keep them, the organization is required to make use the right mix of compensations tools at any point in time. Studies have shown  that the right spark of remuneration and reward systems do determine to a great how motivated a company’s sales force is going to be. There is no one particular sales force remuneration and/or reward that can be used singularly to motivate sales force to be top flight sales representatives. Gone are the days  when managers rely solely or remuneration system centered on payment by result (PBR) i.e straight commission which tends to the rewards to only the units or value product/service sold by the sales force during a given period of time. Payment by PBR (i.e Commission) has become unpopular and has given way to a variety of remuneration and reward system in order to be able to take care of the different needs of the sales force. Because what motivate sales person “A” may not be what will motivate sales person “B” at a given point in time. Furthermore, the motivating tool that stimulate a company’s sales force to be able to accomplish a particular set goal/task may not be able to appropriate for a new entirely different task that management have necessary that the sales manager utilize variety of incentives in order to be able to adequately “Lead” and motivate his sales force all the time.

These are various remuneration and reward system trying to motivate being used by most firms I trying to motivate their sales force to be top flight sales force. They are as follows:

  1. Salary Based remuneration
  2. Straight commission
  3. Salary plus commission or combination plan.

Financial and non financial incentives by (Morden A.R. 1987, pp. 5cb-517) includes the following:

  1. Achievement awards
  2. Status symbols
  3. Promotion
  4. Published league tables
  5. Contest ad competitions.
  6. Salary Based Remuneration

The present tendency among firms is to reward their sales force on straight salary and to allow their sales force a reasonable expense allowance with a company car to the services of the dales force. This is mostly done in situations where emphasis is mostly paid to the provision technical or professional service that need be resulted from  sales provision of service cannot be tied to a particular sales force. The organization may often to a particular sales force. The organization may often decide to pay only straight salary (commission exclusive) to their sales force. The popular rule however seems to favour “making about 70 percent of sales force’s total income fixed and allocating the remaining 30 percent among the other compensation elements. The fixed amount, which can either be straight salary, or a drawing account tend to stabilize the income of the sales force than the other variable income. The straight salary allow the sales representative to receive a stipulated salary for having provided his/her employer a needed service. Straight salaries (depending on the nation concerned) are normally paid on bin weekly or monthly basis.

  1. Straight Commission

This allows the sales force to receive compensation based on a particular rate or declining rate depending on his/her  productivity (i.e amount of sales obtained) during a particular time within his or her territory straight commission type f compensating the sales force, the sales representative may or may not receive reimbursement for expenses incurred while trying to sell.

In trying to utilize straight commission plan, companies are advised to consider the acceptability of their product in the market place, the stage of the product in its cycle, and the rate of competition in the market.

  1. Salary plus commission or combination plans

Most organization in order to eliminate the inherent demerits and to take advantage of the merits known with the use of either straight  salary commission have been forced to opt for the combination plan in order to have a better motivated sales force. The adequate administration of the combination plans (i.e salary plus commission) will allow management to motivate those that sell more than normal; and to also e able to determine the amount of non selling activities which management wants sales force to undertake. The salary plus-commission also do allow selling expenses to be brought into line drastic fall in sales volume.

  1. achievement Awards

Achievement Awards Usually Receive wide publicity within the awarding the firms. It may take the form of prizes or paid holidays trip (with family to any country or location of the sales force choice.

  1. Status Symbols

The organization may provide those top flight sales force with much more bigger and expensive company cars allowing them a bigger expense accounts, or the provision of distinctive change card facilities. So that, they can serve a good reference point for those other sales representatives who are yet to make it in the field of selling.

  1. Published League Tables

This tends to show “who is who” among the sales force. It goes to compare the performance of the sales representative during a given period of time. The only negative effect of this incentive as that, instead of going to propel those at the lower end of the list, it may go to lower their morale if the sales department tend not to accord these particular sales people their desired respect and friendly atmosphere.

  1. Promotion

Occasionally, the provision of only, monetary incentive to motivate sales force all the time may turn to a dis-incentive. People may appear to get a part at the back if given promotion to more responsible position than being stagnated at one position un-necessary too long. Despite the attractive monetary incentives, sales forces do aspire to be promoted to a senior sales post and finally to sales management positions.

  1. Contest and Competitions

These are used to create competitive spirit among the sales people. This type of motivational tool is mostly used during planned sales promotional campaign for slow moving products for a short duration of time. In order to win the specified prize(s), sales representatives re-double their efforts in order to be the best seller of the promoted items. Apart from the contest and competitive being set on selling more of the product, the prizes (s) for the contest may be set aside for the sales person who receive the highest level of praise for having provided efficient service to buyers in their respective sales territories.

Training of sales force

Allen (1973) states, in the training of sales personnel it is necessary to lay emphasis upon the reason why a job should be learned, and so far so possible to see the job from the recruit point of view. It is fair to say that no one learns anything unless he sees good cause to do so.

Methods of training the sales force

There are two broad methods of training sales force (Okafor, 1996) namely:

  1. Those involving group participation and
  2. Those that only involves individual training

Group instructional methods

The group instrument methods are basically about four in member. They include;

  1. Lecture
  2. Group discussion
  3. Role playing
  4. Simulation or game.
  5. Lecture:

The lecture type of sales force training tends to be mainly for the purpose of the dissemination of basic information via oral presentation by an experience sales personnel or manager to the trainees. Apart from oral presentation, audio, visual aids can also be used to compliant oral presentation. The lecture form of training the sales force only allows the trainees to watch and listen without contributing much during the training. Trainees can however ask questions when and where necessary.

  1. The group discussion method

This enables the trainees to play active role- instead of the passive role they are known to play in the lecture method. In the group discussional method, the learning atmosphere tends to be more released with the trainer playing less dominant role. Group discussion method (unlike lecture method) is normally not prepared advanced discussion. It can come in the form of sales seminar or conference or the use of case study.

Despite that the trainer do play a passive role, he is expected to understand the topics under discussion and also to be able to be a good leader in order to command the respect of the trainees.

  1. With the role playing method

The leader or trainer introduces the topic under consideration with a detailed analysis of the different personalities and environment or situation involved. After the provision of adequate information, he then appoints trainees to play the various role of prospect, sales representative, and commentators.

  1. The role playing method

This allows the performance of the different role players to be scared/assessed by the trainees and the leader or trainer. Despite that role playing allows trainees to practice what they learnt in other formal training, its major weakness are mainly that those assigned specific roles might not have played the roles very well, and the emotional tendencies usually exhibited with the role players while trying to act the role they were assigned.

  1. Simulation or game method

Simulation or game method of training for both newly recruited and old sales representatives have something in common with the playing; however what differentiates it from role playing is that  it is based on real life situations. In stimulation or game method, trainees are made to assure the position makers are after the other.

Experiences on previous research

Onwuchekwa (1993), considers organizational participants as the most strategic element of an organization. One can only contribute when one is satisfied with his/her membership in the organization. So he/she must be motivated or introduced to make contributions in the organization. Therefore, the subject of incentive in organization is fundamental.

Operationalizing incentive strategy could be facilitated by giving consideration to some motivation to some of motivation theories, some of these are the need theory Maslow (1992), human relations theory, inequity theory (Adams, 1990), theory of mature individual (Argyris, 1987), Mc gregors theory X and Y (1990) etc. these theories can give basic ideas on how we can improve our conceptions beings and human nature.

In considerations of the above theories, Onuchuekwa (1995:52), considers Maslow humanistic theory and Agyris theory of nature of individual fundamentals for formulation of incentives theories. He further strongly believe that the first state of Maslow’s hierarchy of needs will continue to be applicable in Nigeria form many years before the social part of that theory (higher than other needs).

Okoye (1980:35) further stipulated conditions for compensations to be paid at all in respect of an injury to or death of a sales force not only that the employment must be the one envisaged by the sales force compensation act but also the employer and the sales force, as we as the dependency and membership of one family if applicable shall be within the contemplation of Act. The accident which resulted in the injury to the sales force or to his death must not only have occurred during the course of the sales forces employment but must also arise out of the said employment.

Organization according to Onwuchekwa (1993: 24) operates or formulate three types of compensation policies. These are basic, variable and supplementary or fringe benefit compensation policies. Each of these compensation policies perform specific functions for the business organization. Basic compensation policies aim at attracting sales force/ workers to the organization, variable compensation policies is motivational and it is aimed at directing workers towards superior performance, fringe benefits aimed at retaining workers in the organization.

In conclusion, in Nigeria today, according to Onwuchekwa (1995) people talk about Banks, Oil companies, etc. these are popular companies noted for treating their sale force well through design of diverse effective fringe benefits. Business faculties in the present day Nigerian universities and Polytechnic are gradually loosing lecturers to the private sector especially banks and other business organization because of more attractive basic salary, variable and fringe benefits. Banks are even completing among themselves. Companies that are deficient in supplementary compensation policies may lose their skilled sale force to companies that have attractive supplementary compensation policies.

 

Leave a Reply

Your email address will not be published. Required fields are marked *