Tuesday, January 28, 2020
MaslowÃ¢â¬â¢s Hierarchy of Needs Essay Example for Free
MaslowÃ¢â¬â¢s Hierarchy of Needs Essay A good sales-person is one who possesses personality traits that is in their innate nature to interact with others. These are often difficult to teach but can be developed with time, depending upon the individualÃ¢â¬â¢s motivation to excel in their field of work. This forms the intrinsic motivation. However, the motivational tendencies of an individual sales-person alone are insufficient as it is also dependent upon extrinsic motivational factors. (Luke Ali 2011). It is a force that can spur or discourage an individual from achieving the fullest potential in any field. It can take the form of monetary or non-monetary benefits, which encompasses the extrinsic motivation of the sales-person (Luke Ali 2011). Knowing the fact that monetary incentives have been deeply entrenched as the basic method of reward for employees; it must not be assumed that relying on this method solely will be effective. Companies have to consider immaterial benefits to motivate its staffs. What is motivation? Motivation is to initiate action on a certain task. It is to expand a certain amount of effort on that particular task and to persist in expanding effort over a period of time. Therefore motivation is a driving force that pushes people to work, put in effort in their work and working harder than the rest. How to motivate your sales force to have great performance? ItÃ¢â¬â¢s not just about the paycheck. Effective incentive compensation management is based on an understanding of basic human motivationÃ¢â¬âon the importance of trust, self-esteem, social recognition and improved chances to fulfill oneÃ¢â¬â¢s potential (Bakosh 2007, 3). Leadership Many people assume salespeople are motivated by money, and while this is largely true, its absurd to think they are motivated only by money. Salespeople are still human and while commission bonuses and sales spiffs will probably remain an important part of most sales compensation plans, studies consistently show that financial incentives never have the same lasting impact as an employee who is passionate about his work and it is a simply not possible to be passionate about something that you think is inferior. Besides instilling natural passion into your sales team, a salesperson who truly believes in his product or service is far more likely to sell with integrity. Good teamwork is crucial to job satisfaction because it gives employees a sense of accomplishment when the objective is attained. Inspirational sales leaders are well aware that different individuals have different motivations and needs, and they vary their own style accordingly. An especially effective leader with consciously assesses each sales representativeÃ¢â¬â¢s Ã¢â¬Å"ideal level of energyÃ¢â¬ , and creates productive Ã¢â¬Å"stretchÃ¢â¬ for each person according to the level of tension at which each performs at his or her personal best. He inspires some representatives mostly through positive reinforcementÃ¢â¬âÃ¢â¬Å"you can do it, youÃ¢â¬â¢re the bestÃ¢â¬ Ã¢â¬âand others mostly through constructive criticism, each according to their individual profit le and preference. Compensation Plans A well-designed compensation plan is crucial for the success of a company, and must not be overlooked. It has the ability to motivate or de-motivate an employee. In truth, it is valid to imply that, in this context, an effective plan can inspire the sales-person to generate more revenue for the success of a sales company .Hence, when designing the plan it involves the consideration of multi-factorial elements (Growth Process Group 2011). Every step has a purpose and needs to be taken into account. The sales behaviour goals are often misinterpreted by organisations, hence resulting in the failure to motivate their employees. Lastly, the design guidelines encompass the classification of the job and its entitled incentives (Growth Process Group 2011). Compensation Plans Ã¢â¬ ¢Salaries are fixed amounts per month or year for performing a role. Ã¢â¬ ¢Commission is a payment based on the value of sales achieved. This constantly motivates the sales-person especially since his income is strictly dependent on his sales. Ã¢â¬ ¢Salary-plus-commission plans offer an incentive above a basic salary that provides a high-degree of flexibility securing salary and profits but also surpass oneÃ¢â¬â¢s performance (Tokarev Sergey 2010). Ã¢â¬ ¢Bonuses is based on oneÃ¢â¬â¢s achievement and not working hard alone. It is the results that matters and bonuses should not be restricted to keep employees from producing results. (Lee Ann Obringer 2011) Ã¢â¬ ¢Long-term incentive plans like profit-sharing plan reward employee for their performance over a continued period of time. This helps retain, motivates employees and even improve their commitment. MaslowÃ¢â¬â¢s hierarchy needs MaslowÃ¢â¬â¢s Hierarchy of Needs is a motivational theory that illustrates that lower-needs need to first be satisfied before higher-needs can be pursued in a hierarchal sequence. Therefore, after a need is satisfied, it will cease to motivate an individual who will inevitably seek for the next higher-need. Each level requires different actions to meet these needs in order to effectively motivate. In relation to the compensation plans above, monetary benefits may only fulfil the lower needs for an individual. Ultimately, when these needs are achieved, itÃ¢â¬â¢s effectiveness in motivating individuals will gradually dwindle. Non-monetary benefits will then be necessary to satisfy the individualÃ¢â¬â¢s higher needs, in accordance to MaslowÃ¢â¬â¢s hierarchical system. Only through this, can companies sustain long-term motivational effects for its employees. In relation to the compensation plans above, monetary benefits may only fulfil in the lower needs for an individual temporarily. Ultimately, when these needs are achieved, non-monetary benefits will take precedence to satisfy the individualÃ¢â¬â¢s higher needs, in accordance to MaslowÃ¢â¬â¢s hierarchical system. Only through this, can it sustain long-term motivation effects. Yet, it is necessary to be weary that while MaslowÃ¢â¬â¢s theory has helped in the understanding of the application of compensation plans, applying this concept workplace can be tacky as different employees can be driven by different needs. Furthermore, there are insufficient evidences to substantiate the support of the hierarchy theory because its relevance to one job might not apply likewise to another (NetMBA 2010). A sales force specific hierarchy of motivational factors- Maslow hierarchy of motivation. By understanding how an integrated and holistic approach to motivation works the importance of trust, of self-esteem, of social recognition, of improved chances to fulfill oneÃ¢â¬â¢s potentialÃ¢â¬âtraditional incentive compensation management strategies can be rethought and implemented in ways that improve the performance of the sales force and help the entire company achieve high performance (Bakosh 2007, 3).