1. 1. 07/06/10 1 By : Prof. Amit Kumar
2. 2. 07/06/10 2 A student pursuing management education from IILM- Graduate School of Management, for example may find himself or herself placed in a firm as a Sales Manager. Our goal is to prepare the student for the exciting challenges related to leading sales organizations in todays hyper-competitive global economy. IILM-GSM Importance of this course Selling & Sales Management
3. 3. 07/06/10 IILM-GSM Selling & Sales Management
4. 4. 07/06/10 Learning Outcomes After completing this chapter, you should be able to: Understand why having a formal selection process improves the quality of newly hired salespeople Discuss why it is important to analyze the skills a salespeople needs to succeed and include that information in a job description. Name the sources from which salespeople can be recruited both within and outside of the firm. Explain the five steps of the selection processing IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
5. 5. 07/06/10 Contents Finding & Recruiting Applicants Recruiting Internal Applicants External Applicants Selection Procedures Having the Candidate Complete an Application Form Testing the Candidate Personally Interviewing the Candidate Verifying the Candidate's Background Information Conducting a Physical Exam (If Necessary) Evaluating the Success of Recruitment & Selection Efforts Socialization Process IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
6. 6. 07/06/10 Recruitment Recruiting is the process firms use to find and hire the best qualified candidates for an open sales position. Recruitment is an act of inducing qualified and appropriate people to get interested in and apply for a salespersons position within a sales organization. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
7. 7. 07/06/10 Finding and Recruiting Applicants The recruiting step in the selection process is based upon accurate information gathered in the planning stage while forecasting turnover, conducting a comprehensive job analysis, and writing an accurate and concise job description. The sales manager must also determine an appropriate number of applicants that need to apply for the open position. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
8. 8. 07/06/10 Performs Sales Management +HR Management ! Recruits, Selects, Trains, Motivates, Leads, Controls and Compensates Sales Teams Selection and Recruitment of efficient sales people is always a process of building competitive advantage for an organization The Sales Manager IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
9. 9. 07/06/10 Finding and Recruiting Applicants To estimate the number of applicants that need to be generated in the recruiting step, let's assume that a firm needs to hire two salespeople; that traditionally 10% of the applicants who apply with the firm are offered a sales position; and 80% of them accept the offer. This will lead the following solution: IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection Number of Applicants Needed = 2 open position (.10 Selected) (.80 Acceptance)X
10. 10. 07/06/10 Finding and Recruiting Applicants Sales manager sometimes have a hard time generating a large pool of highly qualified applicants from which to fill an open sales position. As a result, most firms look at several origins, including both internal and external sources to the company. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
11. 11. 07/06/10 Recruiting Internal Applicants Internal applicants are potential candidates for open sales positions that currently work for the company; perhaps as engineer, product manager, CSR or manufacturing managers. Many company first look within their firms to find outstanding candidates. Managers already know a great deal about internal applicants, including their work habits, personality and ability to assume more responsibility- information that is seldom known about external applicants IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
12. 12. 07/06/10 Recruiting Internal Applicants Internal sources - existing employees - lateral and upward moves - interns and cooperative students IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
13. 13. 07/06/10 Recruiting External Applicants External applicants are candidates for the sales positions that are generated from a variety of sources that include: Referrals Advertisements Private recruiters Educational institutes Job/career fair Trade shows E-recruiting IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
14. 14. 07/06/10 External Applicants: Referrals There is a saying, It's not what you know but who you know. Networking is the practice of forming relationships and consulting with other salespeople, executives and friends to learn about positions that may or may not be publicly advertised. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
15. 15. 07/06/10 External Applicants: Advertisements A universal method of finding sales applicants is by advertising in newspaper, magazine, and/or online. The format of information includes: Title of the job opening Minimum job qualifications Preferred job qualifications Location of sales territory Discussion of pay and benefits Statements of core company values Who and how to contact the hiring firm IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
16. 16. 07/06/10 External Applicants: Advertisements Blind advertisements offer only a limited amount of information about the sales position and therefore tend to generate an applicant pool with wide range of experience and qualifications. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
17. 17. 07/06/10 External Applicants: Private Recruiters For more complex sales positions, like technical and international sales, career counselors or 'headhunters' from private recruiting firms are utilized to locate and conduct initial applicant screening. (HR Outsourcing) Examples of Professional recruiting firms like Porter Group Inc, Sales Ladder, Sales Recruiters Inc, etc. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
18. 18. 07/06/10 External Applicants: Educational Institutes College and universities can be excellent sources of applicants for firms seeking entry-level salespeople. Firms like Hilti Corporation, an international manufacturer of construction products, are hiring new sales people from University of Sales Center Alliance (USCA) schools, a consortium of sales centers located at universities throughout the US. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
19. 19. 07/06/10 External Applicants: Job Fair/ Trade Shows Job Fairs are career conferences jointly conducted by trade groups, student organizations, universities, cities or business consortium. At Trade shows, manufacturer and vendors sometimes post signs advertising open position for distributors and sales agents. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
20. 20. 07/06/10 External Applicants: E-Recruiting E-recruiting is becoming increasingly common, since firms can quickly and economically generate a large pool of candidates using this methods. Job data banks are available at such sites as: www.sales.monster.com, www.careerbiulder.com, www.naukri.com, www.efinancialcareers.com. Firms are even starting to post their job openings on websites like, Face book and MySpace IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
21. 21. 07/06/10 Selection Procedures An objective selection process allows the sales manager to access the qualification levels of the applicant pool and gain essential information that is needed to select the best person for the job. The five stages of the selection process include: 1. Having the Candidate Complete an Application Form 2. Testing the Candidate 3. Personally Interviewing the Candidate 4. Verifying the Candidate's Background Information 5. Conducting a Physical Exam (If Necessary) IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
22. 22. 07/06/10 Selection Procedures 1. Having the Candidate Complete an Application Form An application form is an electronic or paper form that asks the job candidate to provide a standard list of formation about his or her background, education, and work experiences. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
23. 23. 07/06/10 Selection Procedures 1. Having the Candidate Complete an Application Form Benefits Completed form provide managers with consistent information about candidate's ..Also, forms have to be signed by the candidates, thereby granting the firm legal permission to verify the information they provide. Second, completing the form requires a candidate to read and follow direction, respond to questions and express themselves, which offers sales manager an initial impression of the applicant. Third, sales manager can use the information gleaned from application to develop personal interview questions. (like, Reason for Gap, What motivated you to choose English as a major in undergraduate studies etc). IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
24. 24. 07/06/10 Selection Procedures 1. Having the Candidate Complete an Application Form Application form should not ask questions about an applicant's martial status, gender, religion, race, age or handicaps. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
25. 25. 07/06/10 Selection Procedures 2. Testing the Candidate Firms test applicants to try to confirm what they have learned about candidates during the interview process. A psychological test is a method of sampling small, representative sets of behavioral responses gathered under uniform conditions. The samples are then scored based upon predetermined rules or formula. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
26. 26. 07/06/10 Selection Procedures 2. Testing the Candidate A range of psychological tests are available to sales manager, including: Personality Test Intelligence Test Ability Test Aptitude Test Emotional Intelligence Test IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
27. 27. 07/06/10 Selection Procedures 2. Testing the Candidate: Personality Test Personality Tests are designed to measure personality traits that motivate sales applicants- traits such as empathy and ego. Examples include the Multiple Personal Inventory and the Gordon Personal Profile. Applicants are asked to respond on a scale with anchors of Strongly Agree to Strongly Disagree 1. I get stressed out easily. 2. I put others first. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
28. 28. 07/06/10 Selection Procedures 2. Testing the Candidate: Intelligence Test Intelligence Tests to estimate the quality of information acquired and used by applicant. Such as, Wonderlic Personnel Test can be completed in 12 to 15 minutes. This test measures applicants' memory, reasoning and verbal ability. Another is Otis Self-Administering Test of Mental Ability. Respondents answer each question as being True or False. 1. The two of the following numbers added up to 13: 1, 6, 3, 5, 11 2. A pie can be cut into more than 7 pieces by making only 4 diameter cuts through its center. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
29. 29. 07/06/10 Selection Procedures 2. Testing the Candidate: Ability Test Ability Test are designed to estimate the current strengths and weaknesses of an applicant to effectively perform specific tasks, such as abstract reasoning and complex problem solving. Such as, the Customer Contact Aptitude Series (CCAS) is an ability test that measures the core reasoning capabilities related to sales and customer service positions. 1. What number comes next in the following sequence. 16, 8, 4, 2, 1, .5, .25, ? IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
30. 30. 07/06/10 Selection Procedures 2. Testing the Candidate: Aptitude Test Aptitude Tests, which are similar to ability tests, measure an applicant's style of work, how the person interacts with other people, and whether the person has an interest in or ability to perform certain tasks, such as selling. Campbell Interest and Skills Survey is one such test. ( www.pearsonassessments.com/tests/ciss.htm) Applicants are asked to respond on a scale with anchors of Strongly Agree to Strongly Disagree 1. I like to study and solve math or science problems. 2. I like to lead and persuade people and sell ideas and things. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
31. 31. 07/06/10 Selection Procedures 2. Testing the Candidate: Emotional Intelligence Test Emotional Intelligence Test is an individual's ability to process emotional information as it relates to the perception, assimilation, understanding and management of human emotion. Applicants are asked to respond on a scale with anchors of Strongly Agree to Strongly Disagree 1. I do not get angry when verbally attacked. 2. In my life the stress never ends. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
32. 32. 07/06/10 Selection Procedures 3. Personal Interview The personal interview is considered by many people to be the most important stage in the hiring process because managers heavily rely on it- especially because testing applicants can be expensive. During personal interviews, job applicants appear before the firm's sales manager and other employees. A variety of different types of interviews sales managers typically conduct. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
33. 33. 07/06/10 Selection Procedures 3. Personal Interview: Structured Interview A structured interview means that, prior to the meeting with applicants, the sales manager or interview team prepares a list of questions along with a range of acceptable answers, like: What has been your proudest achievement? Cites examples of his or her selling success. What do you like about being in sales? Independence, Ultimate earning potential What kind of boss do you work best with? A boss who allows freedom, communicates expectations and helps as needed IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
34. 34. 07/06/10 Selection Procedures 3. Personal Interview: Structured Interview A structured interview means that, prior to the meeting with applicants, the sales manager or interview team prepares a list of questions along with a range of acceptable answers, like: What is the best way to develop your specific life goal? By focusing on family, contributing to firm and society You have a buyer who wants to buy immediately, but you are not sure the product is right for the buyer. What do you do? Would not sell the product until certain it is what the customer needs and he or she will be truly satisfied with it. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
35. 35. 07/06/10 Selection Procedures 3. Personal Interview: Structured Interview Structured interviews have several advantages. It offers confidence to sales manager and 'structure' to the process. This approach ensures that important areas are covered during the interview. Finally, standard questions make it easier to record and compare applicant's responses. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
36. 36. 07/06/10 Selection Procedures 3. Personal Interview: Structured Interview One criticism of structured interviews is that less experienced sales managers may simply follow the questions on the list and not probe for the responses that deviate from the expected answers. For example, the interviewer might focus on reading and recording the applicant's responses rather than critically evaluating the applicants. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
37. 37. 07/06/10 Selection Procedures 3. Personal Interview: Semi-Structured Interview A semi-structured interview allows sales managers to ask a series of open-ended questions that applicants can address in their own words. An example of question might be: 'Why are you interested in a sales position?' Then, after the applicant answers, 'I enjoy the freedom and travel'. The sales manager can delve more deeply by asking: 'What do you enjoy specifically about business travel? This allows the sales manager to gain insight about the applicant as the discussion moves along a natural, logical course. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
38. 38. 07/06/10 Selection Procedures 3. Personal Interview: Semi-Structured Interview Firm uses semi-structured interviews more often when interviewing candidates for the higher-level sales management jobs. The goal in this situation is not try to access whether the candidate has given 'right or wrong' answers, but to gain a sense of his or her overall strategic sales vision for the firm. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
39. 39. 07/06/10 Selection Procedures 3. Personal Interview: Stress Interview Firms often employ role-playing or field exercises during the interview process. In a stress interview, the interviewer places the applicant in an unstructured situation to see how well he or see will perform. For example, an applicant might be asked to sell the interviewer item, like pen, furniture, software products like CRM, ERP. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
40. 40. 07/06/10 Selection Procedures 3. Personal Interview: Stress Interview A Field observation allows an applicant to travel with and observe a salesperson making sales calls on current and potential clients. In a Group interview, a group of applicants for the position are placed in a group or open forum and encouraged to ask questions. Panel interview involves placing a single applicant before the panel of two or more company representatives. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
41. 41. 07/06/10 Selection Procedures 4. Background Verification Past performance of a candidate is, of course, a potential indicator of the person's future performance. One study reported that, HR managers routinely observe job candidates exaggerating their educational requirements, salaries or time working for former employers. That is why it is important to do verification. (there are independent background checking firms verify the background of all Infosys, TCS candidates).. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
42. 42. 07/06/10 Selection Procedures 4. Background Verification One way to gauge the honesty of applicants is to ask judgment-neutral questions on application form. (Relate this with the resume or ask few related questions in the interview) Sales managers also need to contact the references listed by candidates they are seriously considering hiring. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
43. 43. 07/06/10 Selection Procedures 5. Conducting a Physical Exam (If Necessary) The final stage of the selection process is the physical exam. Firm used to require drug tests and physical exams as part of their normal hiring procedure. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
44. 44. 07/06/10 Evaluating the Success of Recruitment and Selection Efforts Because recruiting and selection consume so much of the firm's resources and sales manager's time, it is imperative that an evaluation of applicant sources be performed. In fact, an evaluation allows the sales manager to determine the effectiveness of each applicant source. IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
45. 45. 07/06/10 Matrix for Evaluating the Success of Recruitment & Selection Efforts IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection Sales Applicant Sources Numbers of applicant generated Numbers of applicant hired Percent retained after 3 years Cost Percent with above average performance after two years Internal Applicant Sources Referrals Advertisements (Newspapers, Magazine) Private Recruiters (Educational, E- web sites, Job fairs)
46. 46. 07/06/10 Strategic position analysis Decide on the number of people to hire Identify best sources of recruitment: internal and external sources Generate database of candidates Evaluate candidates Select and induce candidates to accept positions Socialize Turnover Establish hiring objectives Job qualification Job description Organizational characteristics, company image and climate, styles of supervision, compensation, and motivation of the company Selection Socialization Recruitment Planning The hiring process IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection
47. 47. 07/06/10 Socialization Process process of orienting a new salesperson to the sales organization, territory, or division in which he or she will be working Three Stages Anticipatory stage Encounter stage Settling stage IILM-GSM Selling & Sales Management Sales Force Recruitment & Selection