Piyush Tripathi*, Neha Bala, Naresh Mali
Master of Business Administration in Pharmaceutical Management
IIHMR University, Jaipur, Rajasthan, India
The game of the future is not “Just Large Workforce” but “More Effective Workforce”.
Sales Force Effectiveness (SFE) is a key strategy to increase profitability that is the only one dependent variable for most of the companies. SFE enables the sales employees or workforce to target bulk of its effort towards highly profitable and most effective ways. SFE is all about efficiency, execution and engagement. Efficiency means how the workforce uses its time and energy in the organization very smartly; execution means how the workforce performs decisively in a planned way, engagement means to unleash the full potential of the sales force. It mainly involves around sales team strategy, talent management, remuneration and support processes, all are the essential responsibilities of Human Resource Management (HRM) of the organization because HR managers participate in developing strategies and ensure that human resource dimensions are considered.
Human Resource (HR) management deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. One of the most prevalent challenges facing HR management is workforce quality concerns. Now HRM is started planning to hire smart workforce or making its employees smart. The Organization’s HRM enhances its productivity and profit through the concept of Sales Force Effectiveness and rethinking about planning & monitoring, directional activity, performance, rewards, knowledge, team work, territory design, medical affairs, corporate affairs, consultation, effectiveness and customer care.
To measure Sales Force Effectiveness, monitoring is an essential variable through which senior one employee pays attention to day-to-day activities and observes the performance of salespeople in the field. Regularly review call reports from salespeople and spend time with salespeople in the field can also be done effectively to enhance profit.
Directional activity is a strategy of organization’s Human Resource Management by giving positive encouragement to salespeople resulting increase in profit. Evaluate the number of sales calls made by salespeople, evaluate the profit contribution achieved, evaluate the quality of sales presentations and evaluate the professional development of salespeople, are also considered.
Sales Force Effectiveness works on some important issues in which rewards & incentives have a great value. Providing performance feedback to salespeople on a regular basis, compensate salespeople based on the quality of their sales activities, use incentive compensation as the major means for motivating salespeople, reward salespeople based on their effective sales results, use nonfinancial incentives to reward people, these are the necessary points to be taken.
According to Herzberg’s theory, achievement, recognition, work itself, responsibility & advancement are the factors to analyze the level of satisfaction of an employee. SFE analyzes the things that if complete, an employee reaches its level of satisfaction such as the number of calls made in the territories, an excellent market potential etc.
Knowing the design and specifications of the company’s products or the applications and functions of company’s services are considered in Sales Force Effectiveness in Human Resource aspects.
Generating considerable sales volume from team sales, building strong working relationships with other people in our company, working very closely with non-sales people, coordinating smartly with other company employees to handle problems and discussing selling strategies with people from various departments are the measures for effective team work.
CONCLUDING REMARKS –
The one & only motive of any organization is to generate profit as well as productivity and in the case of Sales Force Effectiveness, all the independent variables lean towards one dependent parameter that is profit. Profit includes market share and sales volume compared to your major competitor, profitability & customer satisfaction.
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