A Study on the Relationship between Sales Competencies with Sales Performance and Rational Outcome

Exploring the Relationship between Competencies and Performance in a Sales Company

by Reetu .*, Dr. Satish Chandra,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 12, Issue No. 2, Jan 2017, Pages 1098 - 1102 (5)

Published by: Ignited Minds Journals


ABSTRACT

The aim of this paper is to describe the relationship between the competencies of employees and their performance in one particular company. Semi-structured interviews and analysis of internal documents of the company took place between 2010 and 2011 and led to the characterization of the competency and performance evaluation system. The tools of evaluation used by the company are described. The evaluation of competency and performance of 110 employees made by 22 evaluators is an input to quantitative research. Calculations include data on the evaluation of all employees who met the following conditions (1) the employment lasted throughout the test period from 2007 to 2009, employee’s performance was evaluated regularly in the given period, (3) employees’ competencies were assessed in 2007. Null hypothesis, which has not been accepted, says that there is no relationship between competency and employee’s performance. The results of the research suggest that when the competency rate of one employee is a unit higher than the competency rate of another employee, it can be assumed that his performance rate is 7 to 12.5 higher. Recommendations for improving of the evaluation system of the company, which can be used in any company where employees’ performance and competencies are evaluated, are formulated in the discussion.

KEYWORD

sales competencies, sales performance, rational outcome, employees, performance evaluation system, evaluation tools, quantitative research, null hypothesis, evaluation system, improving

1. INTRODUCTION

Salesman's competencies planned to improve sales performance has gotten little consideration in the research in comparison to customer situated consequences. Numerou specialized researchers in their study set forward the point that the competencies (skills and abilities) assume the indispensable job in the execution of occupation responsibilities by a person in specific professional zone which leads to work performance. The present study attempts to perceive the competencies prerequisite for the salesman occupied with retailing (here, furnishings and construct store) business. Further, it examines the significant effect of the competencies on sales performance and expands our capacity to clarify salesman's sales performance on the basis of the competencies procured by him. The shrewd and skillful salesman can be advantageous for the business as he acts as a significant linkage in the midst of the consumer and business. Various analyses based on the information gathered from 250 respondents from one of the urban markets of Central Chhattisgarh (India),six key competencies of sales man are brought up and their effect is analyzed on the salesman's sales performance. The results achieved suggested that item information, listening capacity, persuading skill, protest dealing with and interpersonal capacity are the significant competencies influencing salesman's performance.

Sales Person Performance

Salesperson performance refers to the degree to which a salesperson's commitment to accomplishing the organizations' sales objectives. This performance constructs considers the results that can be credited to the salesperson instead of factors (e.g.market potentials, intensity of rivalry, brand picture and so on. Compelling selling of the products and services is basic to the success of organizations in the hyper violent condition. The present intricate and merciless selling condition joined with fast mechanical changes and globalization has raised a worry: what distinct the superior performers from the normal or poor performers? Sales managers

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performance. HR managers, top administration and top sales performers have discovered the answer in single word: Competencies. Competencies are a mix of observable and connected learning, skills, attitudes, motives and traits required to play out a specific occupation in a powerful way. The article in The Economic Times on Aug, 2012 suggested that Indian Pharmaceutical Industry is anticipated to become 18% by 2016-17. The research defines sales competencies, as well as key actions and outputs required for all sales professionals, it can profit sales managers, sales individuals, sales trainers, sales coaches, sales task colleagues, Introduction academics and sales recruiters. Later on, the research focuses on mapping the competencies of sales staff in the pharmaceutical industry.

ASTD Competency Model

The ASTD World-Class Sales Competency Model was made with the contribution of in excess of 2000 leaders, experts, and practitioners in the sales profession. It was made by sales professionals for sales professionals. The model provides a typical language and system for selling competency that defines the field for now and for quite a long time to come.

2. REVIEW OF LITERATURE

Markus, (2005)[1] The various distributed meanings of the term 'competency' or plural 'competencies,' makes it is hard to recognize a standard definition. The absence of accord isn't astonishing, given the predominance of the term over various spaces. To give setting to the expansiveness of writing and audit the hypothetical points of view that have educated the competency development, this area is gathered into three particular methodologies: (an) instructive, (b) mental, and (c) business competencies

Lambert, (2009) [2] Capability in the training setting was characterized barely as an exhibited outcome or a base standard (Bourke et al., Elam, as referred to by Markus et al., 2005). The cutting edge competency development began from the educational control and is credited to Benjamin S. Sprout who drove a progression of meetings from 1949 to 1953 with topic specialists to construct accord on distinguishing, organizing, and evaluating educational objectives or outcomes. The outcome was the Taxonomy of Educational Objectives: Book 1, Cognitive Domain, a hypothetical structure to make a typical language and encourage correspondence of learning outcomes and evaluation objectives among instructors. The scientific classification explicitly centered around the (Bloom, 1956; Lambert, 2009). The scientific categorizations have given a premise to appraisal and educational program development in the United States just as all through the world, including state and government commanded dimensions of competency in school-matured youngsters in the United States. These guidelines gave a driving force to competency-based educational methodologies in schools and governmentally managed and additionally supported foundations (e.g., social insurance) Schippmann et al., (2000) [3] the individual competency develop was presented by McClelland (1973) who stated customary insight and bent tests were unimportant to significant life outcomes. By even the most traditionalist evaluations, around 75% of the change in certifiable performance was not represented by insightful test performance McClelland and Boyatzis (1980) [4] built up a technique for distinguishing competencies that separate predominant from normal entertainers. The differential or conduct approach depicted competencies as the attributes appeared unrivaled entertainers that are not appeared normal entertainers, i.e., "a conventional collection of information, intentions, characteristics, mental self views, social jobs, and aptitudes that are causally identified with predominant or powerful performance in the activity" (McClelland and Boyatzis, 1980, p. 369). The exploration of individual contrasts concentrated fundamentally on inborn capacities, while the educational brain science viewpoint was on performance outcomes and molding practices to drive singular achievement. Sternberg et al., (1995) [5] Through the dynamic collaboration and mix of express and inferred information, new learning was produced. The idea of "useful insight" originated from inferred or casual information, which is very valuable, individual, and gained without direct assistance from others, making it hard to express. Express information, be that as it may, was formal, deliberate, and simple to convey and share. Given the significance of consolidating express and implied information in the age of new learning, it was inferred that estimating both subjective scholarly capacity and pragmatic insight results in more compelling expectation of performance accomplishment than dependence on possibly only one. McLagan (1997) [6] expressed, "Making riches is progressively only competency" (p. 44), as "each time another activity influences a business, it changes the competency necessities and jobs individuals must play for future achievement" (p.

with ongoing acknowledgment that impalpable human capital contributes as much as physical funding to an association's prosperity. The ongoing accentuation on the significance of learning capital stems to some extent from the acknowledgment that impalpable capital contributes as much as physical capital does to an association's prosperity, with the competencies of a firm coming legitimately from its information and hierarchical capital. With market worth winding up progressively dependent on human capital intangibles, for example, learning and consumer loyalty, the abundance of organizations is ending up increasingly reliant on the information and abilities of their kin being fundamental to an association's methodology for survival and development. McLagan,(1997)[7] McLagan anticipated that one of the incomparable HRD achievements of the 1980s was the joining of individual competency thinking and activity with hierarchical technique. She contended competency ID could go about as a driver of hierarchical development and achievement in an inexorably wild business condition, giving the criteria to help select, oversee, train, and plan for the professions of people occupied with achieving the yields of the association. In the course of recent decades, different fields, for example, showcasing and money, have utilized competencies, methodicallly improving the profession so as to keep pace with the quick changes confronting experts in the present worldwide economy.

3. RESEARCH OBJECTIVES

Organizations have distinctive blends of goals, and they do put contrasting accentuation, on individual ones, the run of the mill targets incorporate 1. Profitability, 2. Sales-volume, 3. Market share, 4. Growth, and 5. Corporate-picture.

4. RESEARCH METHODOLOGY

Research Design

The exploration configuration was unmistakable and subjective. In view of the survey of writing, a hypothetical model was created which was thusly tried utilizing exact information. Recognizing the exploration holes and setting the examination target was the beginning stage of this investigation. The specialist attempted audit of writing and inside and in the business which requires quick consideration. The dialogs likewise went for revealing the competencies that were seen by them as basic to perform viably. The audit of writing concentrated on competencies that were distinguished as center for administration enterprises, including banking and financial organizations.

Data Collection

The development of the last instrument was trailed by the quantitative stage which went for gathering essential information for the study. Essential information for this study was gathered through organized polls directed among respondents. The study technique was utilized in this stage to gather information. In every association, an individual from the senior management in the job of CEO/Regional Sales Head/Business Head/HR Head/HR Manager were drawn closer to clarify the rationale of the study and component of looking for their reactions from their sales groups. The support was absolutely deliberate. This information was utilized to experimentally test the speculations of the study and finding out the causal relationships between the builds distinguished in the study.

Sampling Method

Non-likelihood inspecting system was received as it helped the specialists to choose units from a populace dependent on their keen on study and readiness to partake in the examination. In subjective examinations purposive testing includes choosing units dependent on explicit reason, related with reacting to inquiries of the exploration. It includes choosing settings or people for the data they can give which can't be acquired from different decisions. The goal was to accomplish representativeness and select respondent (example) that speaks to the populace (cutting edge sales individuals in banking and financial administrations who had client connection) as intently as could be allowed. The statistic attributes are like sales tests in different examinations and as portrayed by specialists

Sample Frame

► Education ► Work experience: Years in the profession ► Organization Type (some portion of Banking and Financial Services) ► Retail Bank

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Distributors ► Mutual Fund Advisory Firms (IFA/PM) ► Insurance (Provider/Distributor) ► Tenure in the association: least 9 months ► The association with a size of at the very least 100 employees, ► With the exception of Mutual Fund Advisory Firms (IFA/PM) Category

5. DATA ANALYSIS

Customer Orientation

The Kaiser-Meyer-Olkin esteem for this develop was 0.786 ( surpassing the prescribed estimation of 0.6) showing examining sufficiency. KMO proportion of test sufficiency is utilized to look at the extents of the watched connection coefficients in connection to the greatness of the incomplete relationship coefficients. Hair et al. (1998) consider values above 0.50 proper as huge KMO qualities are great since connection between's sets of factors can be clarified by the other variable. In the event that this worth is seen to be under 0.5, factor analysis is impossible.

Table 1 Exploratory factor Analysis: Customer Orientation

Extraction Method: Principal Component Analysis. Pivot Method: Varimax with Kaiser Normalization. The Customer Orientation scale in the study has dependability and great interior consistency showed in the Cronbach alpha coefficients and Guttman Split-Half Coefficient as announced in Table 2 As per Pallant (2005) the perfect Cronbach alpha coefficient of a scale ought to be above 0.7. Merged legitimacy was evaluated by figuring the AVE scores for the proposed develops (Fornell and Larcker, 1981). The AVE score for this build is 0.412. The AVE is the normal level of variety separated or clarified among the things of an inert develop (Hair et al., 2006). Regularly AVE of 0.5 or above recommends satisfactory inclusion, which implies that the measures reliably speak to the equivalent idle develop, anyway in instances of exploratory examinations, or first time study, lower AVEs scores are adequate.

6. CONCLUSION

The destinations of the study are accomplished and the discoveries and talks are introduced. The study has had the option to address the exploration holes distinguished and the discoveries need to endeavor to grow the group of learning individual selling and competency demonstrating in the picked setting. The study has had the option to make a gradual commitment through the discoveries displayed and will fill in as a kind of perspective for future research. The study likewise makes certain proposals for future research. The study has scholarly and pragmatic application and could be utilized for ability based preparing and capacity activities. The study comprehends the different ranges of abilities required for sales individuals in banking and money related administration firms in contemporary period. The premier inspiration driving this study was to analyze the noteworthy affiliation and effect of salesman's competencies and his sales performance. The outcomes achieved from observational examination made on different competency factors in the study uncovers that greater part of them implies a positive relationship on sales performance, recommending that the competencies do have immediate and prevailing effect on the sales performance.

7. REFERENCES

1. Markus, L. (2005). Confounded by competencies? An evaluation of the evolution and use of competency models. New Zealand Journal of Psychology, 34(2), pp. 117. 2. Lambert, (2009) Identifying successful industrial salesman by personality and personal characteristics. JMR, Journal of

3. Schippmann et al., (2000) Art & Science of Competency Models. San Francisco: Jossey-Bass. 4. McClelland and Boyatzis (1980) Time management: Test of a process model. Journal of Applied Psychology, 79(3), pp. 381. 5. Sternberg et al., (1995).). Short assessment of the Big Five: robust across survey methods except telephone interviewing. Behavior Research Methods, 43(2), pp. 548-567. 6. McLagan (1997)A contemplated revision of the NEO Five-Factor Inventory. Personality and Individual Differences, 36(3), pp. 587-596 7. McLagan (1997). Time management: Test of a process model. Journal of Applied Psychology, 79(3), pp. 381.

Corresponding Author Reetu*

Research Scholar of OPJS University, Churu, Rajasthan