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. 07/06/10 IILM-GSM Selling & Sales Management
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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