EFFECTS OF SALES FORCE TRAINING ON ORGANIZATIONAL PERFORMANCE

1.1 Introduction

Sales force training methods are different methods of impacting knowledge and skills to the sales force of an organization in order to enable them carry out their job effectively (Shahid et al, 2013). Olusanyan et al., (2012) that the method of training used by insurance firms largely depends on management philosophy, company size, intensity of training required, financial resources available and convenience. Sales performance is one of the components that results from business performance measurement and control systems (Stein, 2010). Salesperson performance comprises of behavioural and outcome performance components. Performance is the accomplishment of a given task measured against known standards of accuracy, completeness, cost/efficiency, and speed and effectiveness (Stein, 2010).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

---

1.2 Background of Study

In recent times, business environment is getting more competitive and dynamic as firms offer a wide variety of choices of products and services for customers preferences. There is speculation that products and services might decline into a business commodity due to intense competition in the market. Basically, the sales-force represents a significant investment in the sales organizations as it occupies or represents a large percentage of total costs each year as businesses across the world spend enormous amounts annually on sales-force compensation as well as on sales training (Kumar, Sunder & Leone, 2015).

The success of business organization is majorly dependent on effective sales-force management. Thus, the company’s sales-force plays a vital role in the process of diagnosing customer needs, developing customer confidence, as well as strengthening trade relations. In order to manage sales-force effectively, managers must understand that salespeople are motivated by a mix of physiological, psychological and sociological factors and these factors stimulate their performance towards organizational objective. Managing the sales-force of an organization is a matter of applying the three stages of management process (Planning, implementation and evaluation) to a sales-force and its activities (Soraj et al., 2015).

In sales management, Alexander Hamilton Institute reported in Kalu (2005) that motivation and supervision are two of the most important topics. Four success factors for sales success include: Product and Application, Selling Skills, Time and Territory Management, and Motivation. Among these elements, only motivation is important in all kinds of selling. Ubanagu (2006) stated that motivation is the effective managerial application of tangible and intangible incentives to improve the performance of the workforce. The glaring feature of sales force activity is that it gives room for personal contact with the customers and the need to undertake other activities not directly associated with personating. Thus, all classes of sales force or salespeople, namely Route sales people, Sales clerk, Detail sales persons, Account representatives, Sales engineers and Creative sales persons require adequate and proper motivation.

Therefore, company needs to carefully understand the issues in sales-force design so as to practically increase the profit and sales potential of the organisation. The heart of effective sales-force management after the company has established objectives, strategy, structure, size and compensation is to recruit, select, train, supervise, motivate and evaluate sales representatives. After these, identified management task are effectively observed and carried out, thus the company’s goodwill, profit, productivity and growth in sales tend to increase sporadically (Marenglena, 2018). The organization in an effort to ensure an effective management of their sale-force, enjoins their sale-force to observe the ethical and legal issues required in personal selling. This is because sales functions in an organization’s activities are highly visible. Ethical and legal issues are extremely important for both sales people and sales managers.

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effects of Sales Force Training on Organizational Performance.

---

1.3 Statement of Problems

Investigation revealed that the foregoing situations of the sales force in manufacturing and service companies in relation to economic performance raise issues on whether these companies can achieve and sustain high rates of output and growth, able to generate and sustain large numbers of employees, and whether they can compete effectively in the global market.

The failure of sales force could have industrial, managerial and marketing implications which this study is set to explore, and which constitutes its research problem. Particularly in the context of how the sales force are motivated towards improving productivity using the incentives of salaries, sales calls allowances, sales bonuses, access to sales vans, product availability and continuous training and updating of the sales force.

Some sales forces lose focus and thereby supply wrong brand of products to customers. These result in long waiting time for customers to receive the needed goods and services, and the consequent low performance as some customers lose patience and consequently take their leave and even go the alternatives. The poor attitudes of the sales force such as lateness to work, delayed sales calls, lack of information for customers problems, could contribute to the low growth of sales force performance in manufacturing and service companies.

---

1.4 Aim and Objectives of Study

The aim of the study is to investigate the Effects of Sales Force Training on Organizational Performance using Chicken Republic in Ado-Ekiti as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To ascertain the nature of relationship that exist between training of sales-force and organization profitability;
2. To examine the effect of motivation of sales-force on organization growth;
3. To determine the implication of sales-force evaluation plan on organization growth;
4. To determine the nature of relationship that exist between recruitment of sales-force and organization profitability.

---

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• To what extent does the training of sales-force relates to organization profitability?
• How does motivation of sales-force affect organization growth?
• What is the implication of sales-force evaluation plan on organization growth?
• What nature of relationship exists between recruitment of sales-force and organisation profitability?

---

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant relationship between recruitment of sales-force and organization profitability
• H1: There is a significant relationship between recruitment of sales-force and organization profitability

Hypothesis Two

• H0: There is no significant relationship between training of sales-force and organization profitability
• H1: There is a significant relationship between training of sales-force and organization profitability

Hypothesis Three

• H0: Motivation of sales-force has no significant effect on organization growth
• H1: Motivation of sales-force has a significant effect on organization growth

Hypothesis Four

• H0: There is no significant implication between sales-force evaluation plan and organization growth
• H1: There is a significant implication between sales-force evaluation plan and organization growth

---

1.7 Significance of Study

The significance of this research work is that effective management of sales-force contributes immensely to firm’s marketing efforts by producing sales revenue which will inadvertently manage who make perhaps their most important contribution to the marketing functions as revenue producers.

The study will be beneficial to many organizations in Nigeria. The management of these organizations will be refreshed and educated more on the needed adequate knowledge and application of appropriate motivational strategies that will enhance organizational harmony and growth. This will facilitate peace, commitment and interpersonal relationship. It will as well serve as literature upon which further research can be done and also contribute to the marketing research.

This study will also be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

---

1.8 Scope of Study

The scope of the research is focused on the Effects of Sales Force Training on Organizational Performance using Chicken Republic in Ado-Ekiti as a case study.

---

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

---

1.10 Definition of Terms

Sales Force: This is a group within a company that conducts sales.

Sales Motivation: This is the expectations and needs of sales representative.

Organizational Performance: This comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).