Motivation

and
Compensation

Mohammad Naquib
 Motivation Includes
Drive to Initiate Action on a Task
Drive to Put Forth Sufficient Effort on a Task
Persistence to Maintain Effort Over Time
 Maslows Theory
What is motivation?

Motivation is the inner force that guides your

behavior and is concerned with the causation
of specific actions.
 Understanding motivation
Motivation should be understood at two levels:
1. What motivates salespeople
(the reasons behind the intensity and persistence of mental and physical effort
expended)

2. How salespeople choose their action

(the direction or decision to engage in specific actions in specific
circumstances)
Hierarchy of Needs Theory
Hierarchy of Needs Theory

By

Maslows
 Hierarchy of Needs Theory
Maslow (1943) stated that people are motivated to
achieve certain needs. When one need is fulfilled a
person seeks to fulfil the next one, and so on.

He has given a model of five stages

 Hierarchy of Needs Theory
This five stage model can be divided into as below
mentioned:
1. Basic needs e.g. physiological,
2. Safety Needs
3. Belonging Needs
4. Esteem Needs
5. And Self-actualization Needs.
 Hierarchy of Needs Theory
1. Biological and Physiological needs - air, food, drink, shelter, & sleep.
2. Safety needs - protection from elements, security, order, law, stability,
freedom from fear.
3. Belongingness needs - friendship, intimacy, affection and love, - from
work group, family, friends, humanitarian relationships.
4. Esteem needs - achievement, mastery, independence, status, dominance,
prestige, self-respect, respect from others.
5. Self-Actualization needs - realizing personal potential, self-fulfillment,
seeking personal growth and peak experiences.
Need Hierarchy Theory
 Hierarchy of Needs Theory
Physiological needs (e.g., basic salary);
Security needs (e.g., Job & pension plan);
Belongingness needs (e.g. Friends/ colleagues at work
group);
Esteem needs (e.g., job title)
Self actualisation needs (e.g., challenging job).
 Need Hierarchy Theory
Maslow's (1968) hierarchy of needs theory has
made a major contribution to teaching and
classroom management in schools.
How to motivate sales
People
 Strategies
There are FOUR Strategies May
Be opt to Motivate Your Sales
Team
 Strategy No 1: Trust
Build trust with the people on your team.
Managers have to create trust and then
maintain it by engaging with their team in a
consistent. The best way to build trust is to be
completely transparent in policy and practice.
Simply discussing trust can be a great way of
starting off on the right foot.
 Strategy No 2: Direct Reporting
Effective salespeople understand how to adapt to
those styles, effective managers understand that
the best way to get results out of their team is to
fit into their reports worlds, instead of forcing
one method of communication or strategy on
everyone else.
 Strategy No 3: Understand your Direct
Reports
You cant motivate someone unless you know
what drives them.
Understand what your direct reports each want
to accomplish in their personal and professional
lives. This will not only show you the type of
person they are, but also give you insight into
what things will motivate them the most.
 Ask some Question to the Team
Are you motivated right now?
What motivates you long term?
What can you do to motivate yourself?
How will I know if you are not motivated?
What do you want me to do if you dont appear
motivated?
???????????Time 48 hour to Figure out
 Strategy No 4: Set Targets
1. Set daily :
2. Weekly
3. and monthly goals.
 Targets
Daily: This is a very short-term goal designed
to break a rep out of their funk.
Weekly: This should be a slightly more involved
reward such as a round of golf that will
influence meaningful results.
Monthly: monthly goals are accompanied by
higher-value rewards based on extraordinary
performance.
 Managers need to understand that different salespeople are
motivated in different ways.

1. Some people are motivated by team-wide sales contests. Some

are driven by quota achievement.

2. Some are motivated by qualitative improvements.

3. Some people are motivated by their impact on the organization.

4. Some people are motivated by money.
 Methods of Compensation
1. Straight Salary Method

2. Straight Commission Method

3. Combination Method
 Key Definitions
Salary The salary may be defined as a fixed sum of money paid at regular
intervals

Incentive Payments

Commission a payment based on short-term results, usually a Saudi Riyal or unit

sales volume

Bonus a payment made at managements discretion for achieving or surpassing

some set level of performance
 Combination Plans
Offer a base salary plus some proportion of
incentive pay
Most popular form of compensation
Well-suited for relationship selling by
compensating for non selling activities while
providing incentives to motivate sales
 Key Questions
What is compensation and discuss one
compensation method as a very appropriate
motivating sales force ?
What is motivation and explain Maslows
theory of needs.
What is employee salary and explain straight
salary compensation method?