ABSTRACT
This
study focuses on the effects of motivation on sales force performance of a
selected GSM provider in Umuahia, Abia State. The objective of the study is to
determine the direction from very high to very low levels of motivation of
sales force
of GSM providers, identify the differences in the motivational tools used on
the sales force by GSM providers and to ascertain whether staff preferred leave
period and participation in decision making have significant effect on sales
force performance of GSM providers determine the most
effective motivational incentives - insurance scheme, commissions and regular
pay used by GSM providers. The
data were sourced using structured questionnaire. Simple percentages and
frequencies were employed for the purpose of analyzing of variance (ANOVA) test
statistic was adopted in the test of the two hypotheses. The target market
requires better goods, services,quick and reliable support than they had
before. The study concluded that there is no
significant difference in the level of sales forces motivation in the service
companies in Nigeria. The sales force motivational tools used in the service
industry is said to be the same. Based on the
finding, the following were recommended; bonus
as a motivational factor should be highly considered. Bonus in form of wages
and salaries are the basic needs in an organization which must be satisfied. Bonus
as a motivational factor should be highly considered and bonus in form of wages
and salaries are the basic needs in an organization which must be satisfied.
TABLE
OF CONTENTS
Title
Page
i
Declaration ii
Certification iii
Dedication
iv
Acknowledgement v
Abstract
vi
Table
of Content vii
List
of Tables ix
List
of Figures xi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2
Statement of the Problem 3
1.3
Objectives of the Study 5
1.4
Research Questions 5
1.5 Hypotheses of the study 6
1.6 Significance of the Study 6
1.7
Scope of the
Study 7
1.8 Limitations of the Study 7
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.0 Introduction 9
2.0.1 Brief History of
9Mobile 11
2.0.2 Brief History of Mobile Telecommunications
Network (MTN) 12
2.1 Concept of
Motivation 14
2.2 Models and Theories of
Motivation 17
2.2.1 Content Theories 18
2.2.1.1 Abraham Maslow’s Hierarchy of Needs 18
2.3 Factors
Which Affects Motivation 21
2.4 Motivational Techniques 23
2.5 Ability, Motivation and
Employees Job Performance 28
2.5.1 Sales Force Compensation
and Incentive Plan 32
2.5.2
Objectives of
Sales Force 37
2.6 Sales Force performance in MTN 39
2.6.1
Sales Force
Performance in 9Mobile. 39
2.6.2 The Difference in the Sale of Physical Product and
Service Product 40
2.7
The Relationship
of Motivation to Productivity And Performance 40
2.8. Motivation
and Ability Contribute To Performance 41
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Research
Design 42
3.2 Area of the Study 42
3.3 Sources of Data 42
3.4 Population
Of The Study 43
3.5 Sampling Technique 44
3.6 Validity of the Instrument 44
3.7
Reliability Test of the Instrument 44
3.8 Method of
Data Presentation And Analysis 46
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.0
Introduction 47
4.1
Data Analysis 47
4.2 Test of
Hypotheses 59
4.3 Discussion of Results 64
CHAPTER
FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1
Introduction 67
5.2
Summary of
Research Findings 67
5.3
Conclusion 69
5.4
Recommendations 70
References 72
Appendix 75
LIST OF TABLES
Table
2.2: Financial and
Non-financial Rewards for the Sales Force 33
Table
3.1: Population Distribution 43
Table
4.21: Responses on whether they have
a clear idea of their company’s aim, 48
principles and priorities.
Table 4.22: Company’s
internal image consistent with its external image. 48
Table 4.23:` Ratings
of level of sales force motivation in 9Mobile 49
Table 4.24: The
factors that have effect on sales force performance 49
Table 4.25: Sales
force motivational tool(s) the companies use 50
Table 4.26: The extent motivational tools differ in
9Mobile Nigeria 51
Table
4.27: Motivation and Leadership as
means of achieving company’s desires,
wants and needs 52
Table 4.28: Factors that
motivated the staff to join their companies 53
Table 4.29: Sales force participation in
decision-making in matters of their interest
motivates them. 53
Table 4.30: Factors that
motivate them on their job 54
Table
4.31: Recent changes that affected
sales force motivation 54
Table 4.32: Motivational
factors to the sales force in 9Mobile Nigeria 55
Table 4.33: Responses to motivational tools as factors that
positively affect sales
force performance in 9Mobile Nigeria. 56
Table 4.34: The
extent motivation can influence sales force performance in GNP. 56
Table 4.35: Responses to whether sales/marketing Manager
facilitates the process
for sales force self-management. 57
Table 4.36: Responses to
whether sales/Marketing manager invest more time in
some salespersons, look at
real situation and help find a workable way. 58
Table 4.37: Responses to whether sales/marketing
manager care about sales
force interests, listening properly against
planned counter argument. 58
Table 4.38: Responses to whether sales force feels
empowered with job description/
quota and
incentives help in finding the solutions. 59
Table 4.39: Result of responses as tabulated in table
4.4 and 4.23 59
Table 4.40: ANOVA Computation using Microsoft Excel 60
Table 4.41: Result of responses as tabulated in table
4.7 and 4.26. 4. 61
Table
4.42: ANOVA Computation using Micro Soft Excel 61
Table
4.43: ANOVA computation using Microsoft Excel 62
Table
4.44: Result of responses as tabulated in table 4.5, 4.7 and
4.23, 4.25. 63
Table 4.45: ANOVA Computation using Microsoft Excel 64
LIST OF FIGURES
Fig 1. A diagrammatic view of Maslow’s Hierarchy of
Need is shown below. 19
Fig. 2.6: Motivation and Ability
Contribute to Performance 41
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
To compete in today’s global markets, organizations strive to
deliver their products (physical) and services (intangible) in both an
efficient and effective manner. In service supply chain, human labour forms a
significant component of the value delivery process and physical handling of a
product leads to standardized and centralized procedures and controls in
manufacturing supply chains, (Sengupta et al 2008:1). The focus of efficiencies
in service supply chains is on management of capacity, flexibility of
resources, information flows, service performance and cash flow management.
Critical factors are demand management, customer relationship management and
supplier relationship management in manufacturing supply chains and service
supply chains. Sales force in any company - big or small, manufacturing or
service, is charged with generating product sales from assigned customer
accounts in independent territories. However, the evolving selling environment
today is much more complex, demanding significant changes in performance
metrics, goals, control and compensation.
South-East zone is an epitome of developing and concentrated
businesses that engage sales force east of the Niger. The role of sales and
marketing is becoming increasingly important to
manufacturing and service firms (big and SMEs) in the South-East.
Unfortunately, most of these companies do not apply the theories of sales
management to their sales operations. They usually rely on past experience or
judgment. Sales management is considered to be recognize management process
activities involving the need to plan, set objectives, develop policies,
procedures, strategies and tactics, to organize and co-ordinate, direct
operations, motivate, communicate, develop staff, supervise and control and
evaluate results, (Bolt 1987:28).
In sales management, Alexander Hamilton Institute reported in Kalu
(2005:29) that motivation and supervision are two of the most important topics.
Four success factors for sales success include: Product and Application,
Selling Skills, Time and Territory Management, and Motivation. Among these
elements, only motivation is important in all kinds of selling. Ubanagu
(2006:190) stated that motivation is the effective managerial application of
tangible and intangible incentives to improve the performance of the workforce.
The obvious and distinctive feature of sales force activity is that it involves
personal contact with the customers, that is, the need to persuade through
personal visits, and the need to undertake other activities not directly
associated with presentation. Thus, all classes of sales force or salespeople,
namely Route sales people, Sales clerk, Detail sales persons, Account
representatives, Sales engineers and Creative sales persons require adequate
and proper motivation.
The three popular methods of compensating sales people identified
by Ubanagu (2006:190) are straight salary, straight commission and combined
plans. He further explained thus:-
1. Straight salary: This
system is mostly adopted when the management wants to motivate sales people to
achieve objectives other than short run volume. Straight salary method of
compensation is adopted in the following situations:-
a.
When the individual sales person’s impact on
sales volume is very difficult to measure in a reasonable time;
b.
Where the sales people are engaged in missionary
selling as in the
c.
When the selling process is complex and involves
a team or multi-level selling effort as in that of MTN.
2.
Straight commission: A commission is payment for
achieving a given level of performance and are based on a certain percentage
(%) of the sales essence units volume. However, MTN Nigeria Company bases their
commission on the profitability of sales to motivate the sales force in order
to extend effort on the most profitable product or customers.
3.
Combination Plan: It put the basic salary with
commissions/bonus or both. If salary is combined with commission, the
commission is tied to sales volume as in the case of straight commission plan.
A bonus is a payment made at the discretion of management for achieving or
surpassing some level of performance. The attainment of quota is often the
minimum requirement for a sales person to earn a bonus as it is the case in MTN
Nigeria.
4.
The purpose of motivating subordinates/sales
forces .is to get them to achieve objectives (results) that help the
organizations, how to motivate employees remains a perennial challenge faced by
managers. This study will therefore examine the effects of motivation on sales
force performance in manufacturing and service companies with a view to making
a comparative analysis, bringing out the areas of differences and similarities,
and projecting more effective and modern ways of motivating the sales force for
optimum productivity. So, MTN Nigeria in Umuahia was used for this purpose.
1.2 Statement of the Problem
Customers are more
demanding today than ever before. The target market require better goods,
services and quick and reliable support than they had in the past. The sales
force in the field who should have some wealth of knowledge and experience
about the products, market, competitors, industry trends, do not seem to be
active and effective as exemplified by failure to keep business promises,
giving incorrect information to customers, and poor customer relationship management.
Specifically, greater
percentage of the sales force in manufacturing and service companies have been
major culprits in these practices including lateness to work and not keeping
appointment at all. Others could be very unfriendly and even become hostile
while attending to customers. Some sales force loses focus and consequently
supply wrong brand of products to customers. These result in long waiting time
for customers to receive the needed goods and services, and the consequent low
performance as some customers lose patience and consequently take their leave
and even go the alternatives. The poor attitudes of the sales force such as
lateness to work, delayed sales calls, lack of information for customers
problems, could contribute to the low growth of sales force performance in
manufacturing and service companies.
The foregoing situations
of the sales force in manufacturing and service companies in relation to
economic performance raise issues on whether these companies can achieve and
sustain high rates of output and growth, able to generate and sustain large
numbers of employees, and whether they can compete effectively in the global
market. The failure of sales force could have industrial, managerial and
marketing implications which this study is set to explore, and which
constitutes its research problem. Particularly in the context of how the sales
force are motivated towards improving productivity using the incentives of
salaries, sales calls allowances, sales bonuses, access to sales vans, product
availability and continuous training and updating of the sales force.
1.3 Objectives of the Study
Consequent upon the
background of the study and the statement of the problem, the researcher will
endeavour to:-
i.determine the direction
from very high to very low levels of motivation of sales force of GSM providers
ii.identify the differences
in the motivational tools used on the sales force by GSM providers
iii.ascertain whether staff
preferred leave period and participation in decision making have significant effect
on sales force performance of GSM providers determine the most effective
motivational incentives - insurance scheme, commissions and regular pay used by
GSM providers.
1.4 Research
Questions
Based on the background
of the study, statement of the problem and the objectives of the study, the
following research questions were raised to guide the study:-
i.What is the level of sales force motivation of
GSM providers?
ii. What are the different motivational tools used
on the sales force by the GSM providers?
iii. What are the motivational effects of staff
preferred leave period and participation in decision-making on sales force
performance of GSM providers?
What are the most effective sales force motivational incentives
used by GSM providers
1.5. Hypotheses of the study
Following the statement
of the problem, the objectives of the study and the research questions raised
there from, the following hypotheses were formulated to guide the survey
i.There is no significant
difference in the level of sales force motivation of GSM providers.
ii. There is no significant
difference in the sales force motivational tools used by the GSM providers.
iii.Preferred schedule leave
period and participation in decision making do not have significant effect on
sales force performance of GSM providers.
1.6 Significance of the Study
This study of the
effects of motivation on sales force performance of GSM providers in Nigeria
will be of immense benefit to the growth of manufacturing and service output in
the economy. The study will provide the marketing managers with better
conceptual, human and technical skills for assessing and increasing the
efficiency of their sales force and other levels of employee towards achieving
both personal and organizational goals.
This study will also be
relevant to companies operating in Nigeria. The management of these companies
will be refreshed and educated more on the needed adequate knowledge and
application of appropriate motivational strategies that will enhance industrial
harmony and growth. This will facilitate peace, commitment and interpersonal
relationship. The study will encourage the management of various companies and
corporations to make policies that will harvest “happy sales force, happy
company” situations.
In the educational
sector, the study will equip the teachers and educational
administrators/managers with the right mindset to “invite students to learn”.
Through this study, they will see more reasons to helpfully but objectively
commit the students to the pursuit of successful teaching and learning process.
The students themselves will be prepared through this study to adequately
handle some economic functions involving human resource management especially
the sales force issues. This work is intended to help the students get ready
for the additional management responsibilities they are likely to encounter in
the real world.
1.7 Scope Of The Study
This research work was
confined to assessing the effects of motivation on sales force performance in
9Mobile Nigeria and as manufacturing company in the South-East states. This study
will identify the available sales force motivational tools, the ones used
differently or otherwise by the two companies, and proffer the way forward.
However, lack of adequate time and finance did not permit the extension of the
study to their head offices, but it is believed that what was obtained from
their Umuahia branch offices represented the general true situation.
1.8 Limitations of the
Study
The conduct of research
in Nigeria and of course all developing countries is hindered by a lot of
problems. In this particular study on the effects of motivation on sales force
performance in 9Mobile and MTN-in Umuahia,the following problems were encountered:
a.
Power supply: Poor power supply is the
greatest problem of this research. Sometimes there will be no light for about
one month or more. When light is on, it would be very epileptic thereby forcing
the researcher to incur more cost to power the generator otherwise nothing
would be done. Browsing, studying, processing of data progress, etc were all
affected by inefficient power supply even in all sectors of the Nigerian
economy.
b.
Family distractions: Combining and
co-coordinating office work, family duties and rigorous academic exercise as
this research is a herculean task. Besides, hostel accommodation was not
available to make the study easy.
c.
Data collection problem: There were delay in
executing and returning the questionnaire by the respondents. This called for
repeated visits to the two companies studied, so also the poor attitude of some
target respondents who did not execute the instrument at all. In fact, sourcing
data from corporations was a very difficult case as the staff were secretive
the extent of which depend largely on the level of exposure and mindset of
staff of the two companies, and the individual differences of all concerned
with this research work..
d.
Financial problems: This depicts the
prevailing economic condition in the country and the consequent financial state
of average Nigerian student. Financing this research was therefore a big task.
There is nothing like research grant to aid self-sponsored study.
e.
Time constraint: As time waits for no
man, the time frame for this study did not allow the use of many analytical
techniques and expansion of the scope. The overall academic pressure, lapsing
of programmes and fear of NUC’s screening harmer on researcher’s job would not permit
extension of period slated for this study.
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