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Copy of sales person performance appraisal

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Wael Ghaddar

on 7 January 2015

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Transcript of Copy of sales person performance appraisal

sales person

Thank you for your attention!
To ensure that compensation and other rewards are consistent with actual salesperson performance
To identify salespeople that might be promoted
To determine the specific training and counseling needs
To provide information for effective human resource planning
To motivate salespeople
Outcome-Based Perspective
Focuses on objective measures of results with little monitoring or directing of salesperson behavior by sales managers

Behavior-Based Perspective
Incorporates complex and often subjective assessments of salesperson characteristics and behaviors with considerable monitoring and directing of salesperson behavior by sales managers
Key Issues
Behavior criteria
Sales calls
promote long-term customer satisfaction
Professional Development
Initiative &
Ethical behavior
Sales quotas
Prices negotiated
Expenses incurred
Specific products sold
Criteria :
Net profit dollars
Gross margin per sale
Return on investment
Number of orders secured
Selling expenses versus budget
Characteristics any method should include:
Job Relatedness
Methods:Graphic Rating/Checklist Methods
Salespeople are evaluated using some type of performance evaluation form

Especially useful in evaluating behavioral and professional development criteria

May be filled out by customers

Disadvantage is providing evaluations that discriminate insufficiently
Methods: Ranking Methods
Rank all salespeople according to relative performance on each performance criterion
These methods force discrimination as to the performance of individual salespeople
May be complex
Rankings only reveal relative performance evaluation
Methods: Objective-Setting Methods
Management By Objectives (MBO)

Mutual setting of well-defined and measurable goals within a specified time period.
Managing activities within the specified time period toward the accomplishment of the stated objectives.
Appraisal of performance against objectives.
Methods:Behaviorally Anchored Rating Scales (BARS)
Links behaviors to specific results
Salespeople are used to develop performance results and critical behaviors
Positive feedback about behaviors may be more affective than positive output feedback
Performance Evaluation Bias
Occurs when a manager’s evaluation of a salesperson is affected by considerations other than the specified criteria
Common sources of bias:
Personal relationships
Perceived difficulty of territory
Impression management
Halo effect
Outcomes bias
Framework for Using Performance Information
Compare Salesperson Evaluations to Identify Problem Area
Investigate Problem Areas to Identify Causes of Performance Problems
define criteria
Determine Sales Management Actions to Eliminate Causes of Future
Problems and to Solve Existing Problems
Evaluate Salespeople against Relevant Performance Criteria
(cc) image by nuonsolarteam on Flickr
Company introduction
name:Pakhsh shadab shomal
Founded:1382 by Mr.fallah
Business:proccessed Food & hygiene goods distribution
number of emplyees:31
number of salesman:10
Geographic coverage:Mazandaran
representative of Shadab Khorasan
salesman performance appraisal in Shadab Co.
Business process of Shadab Shomal
shadab shomal is sole representative of some producers in food & hygiene industry, meanwhile it also sells other producers' goods.
the company owns a warehouse to stockpile goods.
customers of shadab shomal includes retailers, supermarkets, chain stores and ...
each salesman is authorized for a given area of geographical territory.
the company possesses three lorries for delivery free of charge
We have implemented a combined approach to performance appraisal: behavior and profitability
profitability approach:

1.setting standards: we first figured out the average sale of each area in last three years period. Next we compared current annual sale with previous annual sale to determine probable increase or decrease in sale. The result was expected standard amount of sale in each area.

2.comparing performance with standards: in this stage, we confront real sale of individual with expected sale in each area to determine surpassing of standards or falling behind.

3.computing ratio: we calculate total amount of surplus/shortfall and then compute ratio of surplus/shortfall amount of each individual
Behavioral approach:

1.determining scores: we applied checklist method including behavioral criteria and then we asked sales supervisor and some of customers (randomly chosen) to rate the individual in each criteria.

2. computing ratio: we calculate ratio of each individual score to total scores.
Combination of approaches:

Total score of each person includes weighted sum of two calculated ratios
Full transcript