-Swati

SALES FORCE PLANNING

It is the process of planning that involves:

How many number of sales persons are required to hire 2. Determine what type of persons are required for the job One of the major consideration in this process is to determine sources to tap in filling both new positions & those of individuals who are moving on to other jobs. Basic objective of sales force planning is to balance demand & supply of manpower in the sales [dept.] management. It requires consideration of various variables as follows:
1.

VARIABLES TO BE CONSIDERED FOR SALES FORCE PLANNING

Market conditions

[eg. Increased competition in the form of new goods & services] Economic conditions [eg. Increased inflation or economic growth] Demographic conditions Technological developments

FIGURE : SALES FORCE PEOPLE-FORECAST MODEL: FACTORS TO CONSIDER WHEN DETERMINING HOW MANY TO HIRE

S a le s F o r c e O b je c tiv e s S tra te g ic P la n s T e r r ito r ia l D e s ig n

Current SalesForce Personnel

Hiring, Promotions, TransfersIn

Quits, Terminations, Promotions, Transfers Out, or Retirement

People =Forecasts

RECRUITMENT OF SALES FORCE

RECRUITMENT
Recruitment is the process of identifying &

attracting the candidate to apply for the job in

the organisation.

RECRUITMENT PURPOSE
Recruitment processes is used to legally obtain a sufficient number of individuals in such a manner that demand & supply of the manpower in the sales force matches. The goal of the recruitment is to find and attract the best qualified applicants. It also helps to satisfy interest/ objectives of the job seekers & employers.

RECRUITMENT OF SALESPEOPLE
To be an effective recruiter, a sales manager must have the answer to several questions, including: How many persons need to recruit?
What type of persons need to be recruited? Who does the recruiting? Where to find recruits? How to develop a qualified pool of applicants? How can recruiting programs be evaluated?

DETERMINING THE TYPE OF PERSON FOR THE JOB

A job analysis refers to the formal study of jobs to define

specific roles or activities to be performed in sales promotions.

The three steps in the job analysis are to:
1.

Examine the total sales force and each job, and determine how each job relates to other jobs. the necessary information through observation of what people actually do in the jobs, interviews of people in the jobs, and questionnaires completed by job holders.

2. Select the jobs to be analyzed. 3. Collect

 External sources of recruitment:

Other Competitors salesmen From the staff of your distributor Retired staff

FIGURE : MAJOR INFLUENCES AND COMPONENTS OF SALES

RECRUITMENT

Sales Human Resource Planning

I n te r n a l S o u rce s

Rue e im ct n r t
E x te r n a l S o u rce s

Ap a t p lic n Po ol

Qualified Applicant Pool

E valuate R ent ecruitm R esults

Seto ec n li

SELECTION

MEANING OF SELECTION
Selection of personnel refers to the process of selecting the

best available person for the job. Selection sales persons involves selecting (picking & hiring) selecting suitable candidates from the total number of candidates applying for the job. It involves comparison of requirements of the job with the applicants qualifications. For such comparison employer need to get information about applicants educational qualification, mental abilities, physical characteristics, experience, personality, personal background etc. To get the information following selection tools can be used: applications, resumes, interviews, testing, reference checking, physical examination etc.

FIG. COMMON STEPS IN ANY SELECTION PROCESS ARE AS FOLLOWS:

Hiring Profile

Resume screenin g

Applicati on Scrutiny

Interview

Psycholo gical Testing

Reference Check

Physical Examinat ion

Job Offer

FIGURE : MAJOR STEPS IN SALES PERSONNEL SELECTION PROCESS

1pan . pt A i l o i c

6 hi a .Ps l yc E i ao x ni n a t m

2I ii l . na t I tr i w n v e e
YN en s o Dc io e is

5Re n . er c fee C cs hk e

3I- et .n p d h I tr i w nv s e e

4 en .T g s t i

HIRING PROFILE
Sales Manager must develop hiring profile of sales force:
Job title Primary objectives

Secondary objectives
Responsible to / reporting to Duties/ responsibilities

Performance evaluation
Remuneration & fringe benefits

APPLICATION SCRUTINY
Getting application forms filled from candidates

is an orderly, convenient method of collecting necessary information for determining an applicants minimum qualifications.

Sales manager review the completed application forms to

identify the candidates who fit the job specifications & can be called later for interview & tests.

Format for Application Scrutiny It gets information about candidates educational qualification, experience, physical characteristics,

extracurricular activities etc.

SOURCES FOR COLLECTING INFORMATION

Skills, knowledge, and ability.
Preferences, interests, and personality.

Other category: employment tests, interviews, etc. Other characteristics: physical examinations, reference checks, etc.

IS THE INFORMATION JOB RELATED?

Any information collected from the

applicant should be related to the job.

Information classified into the other characteristics category usually represents minimum qualifications for a

job.

INTERVIEW
The personal interview usually involves the one-on-one,

face-to-face meeting of two strangers, both seeking to sell themselves to the other. It is the most used & the least scientific tool for selection.

INTERVIEWS ARE IMPORTANT FOR THE SALES MANAGER AND THE APPLICANT FOR THE SALES MANAGER FOR THE APPLICANT

1. Act as a screening device to 1. Act as a screening device to create the pool of qualified create a pool of qualified jobs. applicants. 2. Confirm application details, 2. Determine skills, knowledge and written tests, & feedback from abilities required. references. 3. Judge if the applicant can be 3. Determine what will be received successful in the short and from the job, such as training, long run. compensation, promotional opportunities. 4. Meet the potential employee 4. Meet the potential boss and and determine if a match determine if a match exists. exists.

Types of Interviews
1. In a Structured interview, the recruiter asks questions, often from a standard form. A structured interview is a standardized method of comparing job candidates.

A structured interview format is typically used when an employer wants to assess and compare candidates impartially. If the position requires specific skills and experience, the employer will draft interview questions focusing exactly on the abilities the company is seeking.

Types of Interviews
2. In an Unstructured interview, the recruiter asks few preplanned questions and often begins with open-ended questions such as Tell me about yourself or Why do you want to sell for IBM?. Questions may be changed based on the interviewee's responses. The interviewer may have a

few set questions prepared in advance, the direction of the

interview is rather casual, and questions flow is based on the direction of the conversation.

3. The Stress Interview An interviewer may place the

applicant in a stressful situation to ascertain how the person might cope with stress when selling.

Types of Interviews
1. Traditional Face-to-Face Interview
Most interviews are face-to-face. The most traditional is a one-on-one conversation. Your focus should be on the person asking questions. Maintain eye contact, listen and respond once a question has been asked. More than one interviewer. Typically, 3 to 10 members of a panel conduct interview. The candidate gets a chance to display his/ her group management and group presentation skills. The basic premise behind this type of interview is that your past behavior is the best predictor of your future actions. With a behavioral question, the interviewer is looking for results, not just an activity list. They are listening for names, dates, places, the outcome and especially what your role was in achieving that outcome.

2. Panel/Committee Interview

3. Behavioral Interview

Types of Interviews
4. Behavioral Interview
The basic premise behind this type of interview is that your past behavior is the best predictor.
The interviewer will outline a situation or provide you with a case study and ask you to formulate a plan that deals with the problem. Many organizations will conduct interviews by telephone to narrow a field of candidates. Telephone interviews may also be used as a preliminary interview for candidates who live far away from the job site

5. Case Interview

6. Telephone Interview

7. Group Interview 8. Lunch/ dinner Interview

http://jobsearch.about.com/od/interviewsnetworking/a/interviewtypes.htm

TIPS FOR THE INTERVIEW

Nonverbal signal in interviews:

Body movements.
Gestures.
Firmness of handshake. Eye contact.

Physical appearance.

One of the reasons nonverbal signals are so powerful is that, they are casual agents of impression formation. Interpretation of nonverbal signals varies with each person. Listen carefully. Think before you answer. Speak clearly. Dont pretend/ provide false information.

Reviewing background information Preparing question plan

Conducting the interview Concluding interview

Post interview activities FIGURE : FIVE PHASES OF THE SALES INTERVIEW

Four basic guidelines to interviewing:

1. Collect information that relates directly to job performance. 2. Consciously wait until the interview is over make a final decision. to

3. Always remember that weaknesses can be offset by strengths and potential.

4. The interview is only one method of obtaining information on the applicant.
Note: Format for rating a candidate during interview is useful.

Improving the Validity of Interviews:

1. Review the applicants resume or application
before proceeding further. Have more than one interview with each candidate 2. Use standardized rating form that they fill 3. Review these information to make ranking 4. Train interviewers

TESTING / PSYCHOLOGICAL TESTING

Employment tests are instruments to measure skill & abilities in candidate that are essential for successful performance of sales job. Tests are used for ascertaining characteristics such as aptitudes, capacities, intelligence, knowledge, skills, or personality. Following tests are often used for selecting sales personnel : 1. Knowledge test Check information about sales job. 2. Ability test Measure skills & abilities of candidate. 3. Aptitude test Measure whether candidate has capacity to learn sales job quickly/ efficiently. 4. Simulation exercise A test which duplicates many of the operations & problems occurring in the sales job.

[Website for Sales Aptitude Testinghttp://rsvpselling.com/content/sales-aptitude-test]

Personality test- Used to judge personality of the

candidate.

Sales managers may decide the following:

1. Not to use tests. 2. To administer tests and interpret the results themselves. 3. To administer tests and have someone else interpret the results.

4. To turn the testing over to consulting industrial psychologists.

The majority of sales managers use tests as only one part of the selection process. To be used successfully, tests must have reliability and validity.

ASSESSMENT CENTERS
The assessment center is a centralized organizational
unit within the firm. Assessment center technique is a centralized,

comprehensive evaluation procedures involve testing, interviews, and simulation exercises such as business

game, discussion group, and individual testing

REFERENCES CHECK
References are the names of persons from whom information can be obtained on an applicants ability and character.
It is conducted to verify that information received about the candidate is true. Generally it is done when application form is being processed before final interview. References should not include blood relatives. References from former employee, teachers, professional contacts are more helpful.

REFERENCES CHECK continued

Following details can be asked for reference : name of person, contact no, address, E-mail ID, Profession.
information can be obtained on an applicants ability and character.

Q.Which questions referee?

can

be

asked

to

PHYSICAL EXAMINATIONS
Almost all companies require their prospective
employees to undergo physical examinations. It is

to verify whether the candidate has any health

problems & to check his /her physical fitness for the [sales] job. On successful completion of physical examination, the candidate can get the job offer.

JOB OFFER

1. 2.

For selection of candidate Candidate must qualifying all steps of selection process. Match between job requirements & candidates qualification

3.

Match between candidates goals, ambitions & present / future opportunities, challenges, rewards that are offered by the job or company.

After decision of selection formal offer is made i.e. offer letter / appointment letter is given to the candidate. It includes various terms & conditions that need to be approved & signed by the candidate.

JOB OFFER-

Appointment letter is a form of agreement/ contract between employer & selected candidate. It includes following details: Job title Working hours Job responsibilities Probation period Reporting Payment / Compensation Leave structure Termination (type & amount) Salary
Vacation pay Educational benefit Profit sharing Mobile expense Company car Relocation expenses Insurance Retirement

EVALUATING SELECTION AND PLACEMENT DECISIONS

The quality and effectiveness of selection

and placement decisions depend on sales

managers hiring a candidate who turns out to be good performer. Candidates qualification should match with Job specification

Costs to consider include both actual and potential costs: 1. Actual costs. a. Recruiting and assessment costs. b. Induction costs. c. Training costs.

Costs to consider include both actual and potential cost:

continued

2. Potential costs.
a. Costs associated with hiring a person who subsequently fails. b. Costs associated with rejecting a person who would have been successful on the job.

Benefits of an effective hiring policy:

Lowering the cost of turnovers and absenteeism.

Lowering training time.

Meeting individual territorial sales potential. Increasing customer satisfaction by having the call by effective salesperson. Improving morale.

Because of these benefits, recruiting effectiveness increases, thus lowering the total costs associated with operating the sales force.

THE SOCIALIZATION OF SALES PERSONNEL

Socialization is the process by which salespeople learn the sales culture and behaviors appropriate for their roles in the organization.

Properly done, the socialization process can help to:

1. Increase performance and job satisfaction. 2. Reduce job anxieties and the fear of failure. 3. Reduce turnover. 4. Impart a positive image of the company, job duties, and future expectations. 5. Save the managers time and thus reduce costs.

THE BOTTOM LINE

1. Establishing a sales force is a complex process that involves many variables. 2. Sales managers use predictors for hiring decisions. 3. Overall, the selection process is no longer based on sensitive / spontaneous feelings. 4. The personal interview is an important part of the selection process. 5. Managers also can use certain employment tests for selecting personnel. 6. Sales force productivity benefits with the selection of good employees.