Performance appraisals are used to evaluate salespeople and are important for compensation, development, feedback, goal-setting, and other purposes. They involve evaluating salespeople periodically based on quantitative metrics like sales volume as well as qualitative criteria. The evaluations are most accurate when an immediate supervisor does them, criteria are appropriate, forms gather relevant information, and potential biases are mitigated. It is important to evaluate the entire performance appraisal system to ensure it meets the goals of both the company and salesforce.

2. C HAPTER 16 E VALUATION OF S ALESPEOPLE’S P ERFORMANCE

4. P ERFORMANCE A PPRAISALS – W HAT A RE T HEY? T HE PURPOSE AND I MPORTANCE OF P ERFORMANCE A PPRAISALS

7. FIGURE 16.1 THE PERFORMANCE APPRAISAL’S INFLUENCE ON SALES PERSONNEL MOTIVATION, BEHAVIOR, AND PERFORMANCE

8. The performance level a salesperson attains results from a combination of the individual’s effort and ability. Ability, in turn, reflects the individual’s skills, training, information, and talents.

12. W HO S HOULD E VALUATE S ALESPEOPLE? The primary evaluator should be the salesperson’s immediate supervisor because this person has direct knowledge, having actually worked with the salesperson.

13. W HEN S HOULD S ALESPEOPLE B E E VALUATED? Salespeople should be evaluated at the end of each performance cycle. A performance cycle is a period related to specific product goals or job activities.

14. FIGURE 16.3 POSSIBLE MANAGEMENT INPUT INTO THE SALESPERSON’S PERFORMANCE EVALUATION Regional Manager

15. A RE THE P ERFORMANCE C RITERIA A PPROPRIATE? A criterion is a standard on which a judgment or decision may be based.

27. The specific evaluation of a sales force’s appraisal system requires the examination of several aspects of the entire system. E VALUATE THE E VALUATION S YSTEM

29. FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT

30. FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE MANAGEMENT continued

31. T HE B OTTOM L INE Effective job performance is essential for organizations to stay in business and for salespeople to keep their jobs. Managers must be aware of the legal repercussions of performance appraisals. Companies must develop, relevant, discriminating, and stable criteria. Performance evaluations serve to reward effective performers and penalize ineffective salespeople. Many difficulties can be corrected if performance evaluations are effectively conducted.