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Chapter 8
1-1
People is special asset
Salespersons
Can not be liquidated as
physical goods ?
Affect on the customers
relationship.
More used, more value
8-2
Recruitment and Selection Process
Why?
Every competitive advantage can be duplicated by
competitors —except high-performing employees
Process helps
Determine the most appropriate type of individual
needed for the job
Attract sufficient numbers of applicants
Select the best-qualified person for the position
8-3
5 Steps of a Recruiting and Selection
Process
Identify skills,
2 knowledge, attitudes 5
Offer position to
salesperson needs one or more
applicants
3 Attract sufficient
number of applicants
8-4
Turnover Rate
Turnover rate: annual % of salespeople who
leave the firm
4
= = 16%
25
8-5
Turnover rate
Why are turnover numbers important?
8-7
Key Recruiting Tools
JA
JR JD
11-8
Conducting a Job Analysis (JA)
Job Analysis:
Entails an investigation of the tasks, duties, and
responsibilities of the job.
1
What a salesperson currently does
on the job
2
How the salesperson should ideally
spend his or her time
8-9
Job Description (JD)
Job Description:
A written summary of the job containing the job title, duties,
administrative relationships, types of products sold,
customer types, and other significant requirements.
The nature of the products and services
Customer type(s) and the frequency of calling
Specific tasks and responsibilities
Relationship(s) between rep and other people in
organization
Intellectual and physical demands of the job
Environmental factors affecting position, such as amount of
travel
8-10
Compensation method used
Job Requirements (JR)
11-11
Example: Ritz-Carlton Sales Position
POSITION Manager - National Accounts Sales
11-12
Recruiting External Applicants
Referrals Current reps (or customers) provide names
Private
Locate and conduct initial applicant screening.
Recruiters
8-14
Testing: Value and Types
Value
May be used to assist with initial screening
May indicate compatibility with job responsibilities
May indicate compatibility with organization’s culture
and personnel
Types
Personality
Intelligence
Psychological
Ethical Framework
Recruiting Internal Applicants
Pros
Managers already know a great deal about internal
applicants
Work habits, personality, and ability to assume more
responsibility
Cons
Candidates seldom possess sales experience
Managers in firm’s other areas will have to replace
employees who move to sales
8-18
Competitors’ Sales Persons?
PROs. CONs.
8-19
Testing: Guidelines for Using
8-21
Interviews
Locations
Campus
Recruiter’s Location (i.e.
Plant Trip)
Neutral Site
Telephone
Types of Interviews
Structured interview
List of questions along with range of acceptable answers
All candidates are asked the same questions
Pros: confidence if mgr is new at interviewing, ensures
important areas are covered, easier to compare responses
Cons: interviewer may just read questions and record
responses
Semi-structured interview
Series of open-ended questions applicants can address in
their own words
Allows interviewer to gain insight about applicant as the
discussion moves along natural, logical course
8-23
More important for jobs such as sales
Other Interviews
Stress interview: places the applicant in unstructured
situation to see how well he/she performs
8-24
Making the Job Offer
Includes
Deadline for accepting the position
Info about responsibilities
Starting salary
Allowable moving expenses
Formal training dates
Time before first performance review
When rep will first be eligible for a raise
Number of vacation days
8-27
What Do Sales Candidates Want
to Know?
Sales candidates ask themselves
How financially healthy is the recruiting firm?
What is the firm’s track record?
What are their opportunities?
What will it take to succeed?
What is a realistic first-year income?
Is the product something customers want to buy?
Does the selling firm support sales efforts?
Is there a commitment to employee development?
8-28
Recruitment by Headhunters
Company Prepares the Job Description & other
requirements
Headhunter conducts some steps in recruiting
process, from selecting candidate to draft
interview.
The company makes the final test and makes the
last decision.
8-30
Recruitment by Headhunters
Pros. Cons.
Quality candidates Higher cost
Process go on quickly
Can be conducted
anytime
Candidates are always
available
8-31
Recruitment by Headhunters:
Question ?
8-32
Caselet 8.1: Southeastern Industrial
Supplier of industrial products for computer
peripheral mfg
Rep turnover increasing
15% → 18% → 22%
Reasons for leaving
Retirement
Better paying jobs
Not meeting standards, were let go
Regional sales mgr James Johnson wants to
reduce turnover to industry average 12%
8-33
Caselet 8.1 : Questions
1) What recommendations would you offer James Johnson for
evaluating the current recruitment and selection process at
Southeastern Industrial?
2) How would it help to compare the performance of each
salesperson who either resigned or was let go?
3) Would it be helpful for Johnson to know how each
salesperson was originally recruited?
4) Should Johnson scrutinize the notes from the former
salespeople’s personal interviews or their preemployment
test scores? Assuming these items were available, what
insight might they give Johnson?
5) How would you recommend that Southeastern recruit and
select new salespersons?
8-34
Caselet 8.2: Harmony International
Win Ho is interviewing reps for HI in Singapore
Territory is a mix of Chinese (85%), Malaysian
(10%), and Indian (5%) businesses
8-35
Caselet 8.2 : Candidates
Chin Lo Wein CR Rao Mohammed
Chinese Indian Singaporean Asri Ashraf
Singaporean BS in chemical Malaysian with
BS in business engineering U Singaporean
Nanvang U Madras citizenship
No sales 2 yrs newspaper MBA from
experience, good advertising sales Malaysian
connections in experience International U
Chinese business Answered 5/10 Answered 8/10
community questions correctly questions correctly
Answered 7/10 Balked at selling Solid attempt to sell
questions correctly pen pen
Attempted to sell Appeared arrogant, Lack of eye contact,
pen when asked considering several subservient
“Dream job” job leads behavior
8-36
Caselet 8.2 : Questions
1) How helpful would a job description/
qualifications be in this situation?
2) Given that the territory is predominantly Chinese,
how should this influence Ho’s decision?
3) Can you identify factors that might disqualify any
of the finalists?
4) What explanation might you offer for Asri’s
behavior during the interview?
5) What is your recommendation for Ho? Why did
you reach this decision?
8-37
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