Expectancy theory - American businessExpectancy theory states that motivation depends on an individual’s expectations of his or her ability to perform a job and the relationship between performance and attaining rewards valued by that individual. First proposed by management specialist Victor Vroom, expectancy theory can be used in sales management to stimulate sales-force productivity. Sales managers apply a five-step process.
1. Provide each salesperson with detailed information regarding what management expects in terms of selling goals, service standards, and other areas of performance. For example, one study found that sales performance was enhanced by setting goals more frequently. In many companies, sales representatives are given annual goals. Quarterly or monthly goals can increase salesforce motivation.
2. Assign salespeople to appropriate tasks by assessing the needs, values, and abilities of each salesperson. For example, some salespeople like to travel while others do not. Some people are great at getting to know clients but poor at closing a deal.
3. Make goals achievable. Sales managers should provide the LEADERSHIP, training, and support salespeople need to be successful.
4. Provide specific and frequent feedback to salespeople.
5. Offer appropriate rewards that reinforce the values of each salesperson. Most salespeople are motivated by making money, but recognition, prizes, vacation time, and other incentives motivate some people.