Week 5: Sales Leadership - Lecture
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Sales Leadership and Motivation
Leadership and Management | Leadership Skills | Leadership Styles | Important Leadership Functions | Team Building & Coaching | Personnel Issues | Motivating the Sales Staff | Sales Quotas | Test Your Knowledge Reviewing the attributes of great leaders like John F. Kennedy, Martin Luther King, Jr., Ronald Reagan, Madeleine Albright, and Margaret Thatcher is a fine way to study leadership. However, no one has been able to identify the exact personality traits or leadership behaviors that make an effective sales-management leader. Likewise, there is no magic combination of skills that ensures effective leadership. However, there are some key concepts and guidelines that can be considered important for successful sales management and leadership. The topics discussed this week will help you understand those vital considerations. In order for a sales manager to fully capitalize on each salesperson's potential, the manager must motivate EACH salesperson. Every one of the sales staff members generally has different needs, goals, aspirations, and problems. Thus, the sales manager's job involves uncovering those concerns, and then helping each salesperson satisfy his or her needs, reach his or her goals, and solve his or her problems.
Leadership and Management
In simple terms, management means getting things done through people. The text defines it as, "the ability to influence and inspire the actions of people to accomplish worthwhile goals." ( Cron, 2009, p. 239). However, it is important to distinguish between leadership and management. Most textbooks define leadership as the ability to influence, inspire, and direct the actions of a person or group toward attaining some desired objectives. Leaders inspire trust and loyalty, and create an atmosphere of accepting change. So, leadership really has a lot to do with motivation. Management, on the other hand, is essentially the supervision of day-to-day activities. The power of the sales manager in interactions with others is another component of the sales leadership model. A sales manager's power is also based on the sales manager's and others' perceptions of who holds power in the relationship. Since leadership involves influencing people, it is also important to understand the sources of power to influence. The sales manager's influential power can be of an expert, referent, or legitimate nature, or the power can be based on reward or coercion.
Expert Power is based on the belief that a person has valuable knowledge or skills in a given area. •
Referent Power is based on the attractiveness of one party to another. It may arise from friendship, role modeling, or perceived similarity of personal background or viewpoints. •
Legitimate Power is associated with the right to be a leader, usually as a result of designated organizational roles. •
Reward Power stems from the ability of one party to reward the other party for a designated action. •
Coercive Power derives from a belief that one party can remove rewards and provide punishment to affect behavior. It is generally a mistake for a sales manager to rely too much on reward or coercive power in his or her relationship with the salesforce. Use of coercive action by the sales manager is likely to create strife in the salesforce, and it may lead to turnover among high-performing salespeople. In the long term, people do not generally react positively to a coercive management style. To have power and influence, the sales manager must earn the respect of the salesforce. This respect is earned by being honest, earning the trust of the salespeople, and respecting them. Having developed the right basis for these relationships, and presumably being an expert, the sales manager will be able to learn what is going on in the salesforce, so he or she can then assess problem areas and provide good advice to salespeople....
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