Recruitment, Selection, Training and Motivation of Sales Personnel
What this domain tests
The sequence of the selection process, sources and methods of recruitment and training, and the theories and tools used to motivate and compensate salespeople.
Recruitment and selection
- Sources: internal (promotion, transfer, employee referral) and external (advertisements, employment exchanges, campus placement, agencies, walk-ins, social media).
- Selection steps: preliminary screening → application blank → selection tests (aptitude, interest, personality, intelligence) → interview → reference check → medical examination → final approval and placement.
Training methods
On-the-job: demonstration, coaching, apprenticeship, job rotation. Off-the-job: classroom lecture, case study, role play, vestibule training, conference. Content covers product knowledge, company policy, market and competitor information, and selling technique.
Motivation and compensation
Financial motivators - salary, commission, bonus, incentives, contests, fringe benefits. Non-financial - recognition, promotion, job security, participation, challenging territory. Theories: Maslow's hierarchy, Herzberg's two-factor theory (salary is a hygiene factor, not a true motivator), and Vroom's expectancy theory (motivation = expectancy × instrumentality × valence). Compensation plans: straight salary, straight commission, and the combination plan most firms use.
Worked example
A representative earns ₹8,000 a month plus 3% commission on sales. Monthly sales = ₹5,00,000. Commission = 3% × 5,00,000 = ₹15,000. Total pay = 8,000 + 15,000 = ₹23,000. Reasoning: identify the fixed part and the variable part separately, compute commission on sales value only, then add. A combination plan gives security (salary) and drive (commission).
Traps that cost marks
- Confusing recruitment (attracting applicants) with selection (choosing among them).
- Listing the interview before the application blank.
- Treating salary as a motivator in Herzberg's scheme - it prevents dissatisfaction but does not motivate.
- Straight commission on a beginner's territory: it offers no income security and encourages territory neglect.