Motivational factors in sales team management and their influence on individual performance

Abstract

This study analysed the intrinsic and extrinsic motivational factors of sales
teams and these factors’ influence on team members’ performance in a
pharmaceutical industry context. A quantitative survey was conducted by
distributing a questionnaire to a sample of 326 salespeople working in
Portugal. The data were analysed using two statistical approaches:
descriptive analysis of the variables and structural equation analysis. The
results show that the intrinsic factors that best explain sales teams’
motivation are ‘personal goals’ and ‘skills acquired’. Extrinsic factors that
best explain motivation in this context are ‘transparency and loyalty in
interactions with bosses’ and ‘trust in the company’. ‘Participation in the
growth of the company’s business’ and ‘attitude’ are the factors that most
influence team performance in terms of results and behaviour,
respectively

Full text

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Tourism & Management Studies, 13(1), 2017 DOI: 10.18089/tms.2017.13108
Motivational factors in sales team management and their influence on individual performance
Os factores Motivacionais na gestão da equipa de vendas e a sua Influência no desempenho individual
Teresa Santos Ferreira
Institute of Business Management, Rua Eng. Ferreira Dias, 728, 4100-246 Porto, Portugal, coordenacaocientifica@instituteofbusinessmanagement.pt
Abstract
This study analysed the intrinsic and extrinsic motivational factors of sales
teams and these factors’ influence on team members’ performance in a
pharmaceutical industry context. A quantitative survey was conducted by
distributing a questionnaire to a sample of 326 salespeople working in
Portugal. The data were analysed using two statistical approaches:
descriptive analysis of the variables and structural equation analysis. The
results show that the intrinsic factors that best explain sales teams’
motivation are ‘personal goals’ and ‘skills acquired’. Extrinsic factors that
best explain motivation in this context are ‘transparency and loyalty in
interactions with bosses’ and ‘trust in the company’. ‘Participation in the
growth of the company’s business’ and ‘attitude’ are the factors that
most influence team performance in terms of results and behaviour,
respectively.
Keywords: Intrinsic factors, extrinsic factors, motivation, performance,
sales team.
Resumo
Este estudo analisou os factores motivacionais intrínsecos e extrínsecos
da equipa de vendas e a sua influência no desempenho dos membros da
equipa no contexto da indústria farmacêutica. Foi efectuada uma
pesquisa quantitativa, distribuindo um questionário a uma amostra de
326 comerciais que actuam em Portugal. Os dados foram analisados com
recurso a duas abordagens estatísticas: a análise descritiva das variáveis,
e análise de equações estruturais. Os resultados revelam que os factores
intrínsecos que melhor explicam a motivação da equipa de vendas são as
“metas pessoais” e “competências adquiridas”. Os factores extrínsecos
que melhor explicam a motivação neste contexto são a “transparência e
lealdade no contacto com as chefias” e “confiança na empresa”. A
“participação no crescimento dos negócios da empresa” e a “Atitude” são
os factores com maior peso no desempenho ao nível dos resultados e
comportamental, respectivamente.
Palavras-chave: Factores intrínsecos; factores extrínsecos; motivação;
desempenho; equipa de vendas.
1. Introduction
Motivation is an issue of particular interest to organisations since
it boosts performance, and motivated employees in direct
contact with customers make an essential contribution to
organisations’ success. In this context, the success of
organisations depends increasingly on the management and
leadership of people, including keeping these individuals
motivated.
Leading companies and keeping them competitive in the current
economic context of pervasive instability and constant change is
a major challenge. Commercial departments play a decisive role
because they are responsible for managing and developing the
entire relationship between companies and their customers and
partners. Since people are the most precious asset of any
organisation and organisations’ connections with clients are
usually directly dependent on the commercial department,
individual employees’ performance within this department is
clearly a critical factor in the success of organisations in a global
macroeconomic context that is increasingly competitive and
volatile.
Customers are increasingly better informed and more
demanding, and they have a wide range of options that can meet
their needs and requirements. Thus, product and/or service
quality contributes to greater competitiveness between
companies. Rodrigues, Guerra and Câmara (1997) point out that
managers have to recognise that success comes not only from
advanced technology, solid financial bases and relevant positions
in the market but also, fundamentally from motivated employees
with appropriate professional profiles that contribute to their
performance of work functions and high productivity.
Organisations rely on the effective use of teamwork to achieve
competitive advantage. Maximising team results means not only
optimising employees’ performance, which corresponds to
achieving the individual objectives of each team member, but
also encouraging the intra-team balance that comes from
cooperation between members.
A competent sales force is one of the most important elements in
successful companies (Churchill, Ford, Walker, Johnston &
Tanner, 2000) as this is the bridge between firms and their
customers. The specifics of sales people’s jobs make their work
different to other employees’ jobs since sales people both
represent their company to clients and represent clients to the
company (Stanton & Spiro, 2000).
The sales force is the link that personalises each company for
customers, functioning as a differentiating factor that creates
more competitive advantages for companies. Sale people are the
most ‘visible’ representatives of companies, and sales teams are
usually the first and often the only employees who are in direct
contact with customers. Therefore, companies’ sales force play a
key role in diagnosing customer needs, developing customer
trust, and strengthening commercial relations. In addition, sales
teams are responsible for implementing their company’s
marketing strategies, as these teams not only represent the
organisations to their customers but also keep companies
informed about clients’ unmet needs (Spiro, Rich & Stanton,
2009). In this sense, it is fundamental that managers be able to
oversee and keep their sales force motivated by, identified with
and committed to the success of their organisation.
With the evolution from a hard sell paradigm to a soft sell
paradigm, concepts about sales performance have become more
complex. Thus, a distinction can be made between performance

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through results and performance in behaviour. The first is
evaluated by the results that companies’ sales force achieves
through their efforts and competences (Anderson & Oliver, 1987)
or the results that can be directly attributed to these professionals
(Walker, Churchill & Ford, 1977), such as more clients,
contributions to the growth of their company’s businesses (i.e.
market share) and fulfilment of goals and objectives. Behavioural
performance consists of sales force activities and strategies in their
work (i.e. teamwork, attitudes, commitment and sales plans, sales
adaptability, sales support and sales presentation). These activities
can be linked directly to sales (i.e. adaptive selling) or comprise
activities not directly linked to sales, such as sales support (Piercy,
Cravens, Lane & Vorhies, 2006).
With regard to the factors that influence motivation the most,
experts’ opinions are not unanimous since these vary according
to stakeholders, scholars, managers and employees. The present
research’s contribution is that we sought to explore the issues
related to the motivation factors of sales teams in Portugal’s
pharmaceutical sector.
Currently, the challenges that companies’ sales force face are
notably greater than those of other employees within companies,
given the direct influence these teams have on companies’
revenues and survival, as well as the levels of demand and need
for follow-up and fulfilment of sales objectives. The same applies
to managers who directly or indirectly coordinate sales teams.
Therefore, sales managers who want to succeed must be
sensitive to the challenges of sales positions and all activities
inherent in sales.
Given these assumptions, the purpose of this study was to
examine the intrinsic and extrinsic motivational factors that
influence companies’ sales force in their job performance at the
level of behaviour and results within organisations. We sought to
determine, on the one hand, which intrinsic and extrinsic factors
most influence and contribute to the motivation of sales teams
and, on the other hand, how motivation influences behavioural
performance and performance results. This study’s findings on
these variables have important practical implications at the
organisational level.
The present research focused on businesses in Portugal’s
pharmaceutical sector because their sales force is considered a
differentiating factor in companies’ competitive advantage. This
investigation addressed two main questions:
1) What are the intrinsic and extrinsic factors that best explain
the level of motivation of sales teams?
2) Does motivation influence behavioural performance and
performance results?
2. Literature Review
2.1 Motivation
Motivation is an abstract construct that has been widely used in
the human sciences and that is amenable to many approaches.
Motivation at work has been presented over the years as a
central variable in organisational life. Interest in this topic arose
in the first quarter of the twentieth century, when researchers
began to recognise the problematic aspects of the Taylorist
model of the scientific organisation of work and the importance
of the ‘human factor’ in organisations.
Since then, many studies have been conducted and theories
developed that have sought to explain the internal functioning of
the impulse that leads individuals to work to achieve certain
objectives and that – with different degrees of empirical support
– is associated with company productivity and employee
performance and personal fulfilment. On the one hand, managers
find it difficult to identify what motivates each employee of their
organisation, while, on the other hand, companies face increasing
difficulties in this area because motivation is not something that
can simply be given to employees.
Based on a combination of various definitions, the concept of
motivation can be understood as the internal force or impulse
that predisposes individuals to an action to achieve an objective.
Being motivated means being moved to do something.
The motivation of their sales force is a controversial topic among
sales managers. These managers – once identified as individuals
who ‘move’ their employees – can seek to direct their sales
teams’ behaviour in the pursuit of their organisation’s objectives.
However, these efforts run up against the complexity of human
nature. Each individual is a single universe, conditioned by a
multitude of variables. While managers find it challenging to
identify what motivates each employee of their organisation,
they also have to deal with increased difficulties in achieving their
objectives since motivation is not something that can be given to
sales people.
Motivation is central to understanding human behaviour.
Without motivation, individuals can rarely achieve good results in
their performance. The secret of success can be said to be largely
related to motivation. It activates and directs behaviour.
Currently, the main objective of management is to identify the
ideal ‘formula’ to guarantee a high and sustainable level of
motivation, as they seek to harmonise and optimise the
interaction between the organisational and personal objectives of
their employees. In this context, a review of the main theories of
motivation is particularly relevant, in order to understand better
the motivation of companies’ sales force. People who produce
good results clearly tend to feel satisfied and self-fulfilled.
2.1.1 Theories of Motivation
Throughout the last century, theories of motivation evolved to
deal with different levels of organisational development, with
several theses developed along with their respective theories or
models of support. According to Rosa (1994), two types of
motivational theories can be identified. The first are classical
theories that are identified as prescriptive models seeking to
inform managers about how to motivate their employees. This
category includes the works of Taylor (1911) and McGregor
(1960). The second group is contemporary theory, which seeks an
explanation for the phenomena inherent in the motivational
cycle. At their most basic level, these are interpretative models of
motivational systems. The work of Alderfer (1972), Herzberg
(1968) and Maslow (1954), as well as process theories
(McClelland, 1961 and Vroom, 1964), are considered part of this
category.

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Within contemporary theories of motivation, two major groups
can be distinguished: content theories and process theories. The
first explain motivation through an analysis of motivational
factors, while the second analyse how motivation is expressed in
performance (Cunha, Rego, Cunha & Cardoso-Cabral, 2007).
Content theories include Maslow’s hierarchy of needs theory,
motive theory, bifactorial theory and job characteristics theory.
Table 1 summarises the theories of motivation.
Table 1 - Summary of motivation theories
Hierarchy of needs theory
Maslow (1954)
This model is based on a hierarchy of five needs. Unmet needs are the main motivators of human
behaviour, with priority given first to the most basic needs and then on up to the highest needs. If the
needs of a given level are satisfied, the level immediately following that becomes important, leaving the
previous level to be a motivating factor. The source of motivation is basic satisfaction and more
intellectual desires. Employees have, therefore, hierarchically defined needs: physiological, safety,
social, esteem and self-fulfilment. These evolve in this order in terms of importance and influence.
Motivation-hygiene theory
Herzberg (1968)
The motivation-hygiene theory suggests that individuals have two groups of independent needs:
motivating factors and hygienic factors. Motivating factors are responsible for satisfaction, and hygienic
factors lead to pain avoidance and the relief of short-term discomfort. The sources of motivation are the
external environment and work. Employees seek enrichment through jobs as new sources of motivation
rather than as a way to avoid dissatisfying work.
Theories X and Y
McGregor (1960)
This theory presents two antagonistic approaches, theories X and Y, regarding human behaviour in
organisations. Theory X (i.e. conventional conceptions of management) sees the average man as
indolent by nature, working as little as possible, lacking ambition, disliking responsibility and resisting
change. In contrast, theory Y (i.e. the new management approach) views human beings as capable of
self-orientation and self-control and able to generate ideas that improve organisational effectiveness.
The Y-theory approach has motivational characteristics.
Vroom’s expectancy theory
Vroom (1964)
This approach considers behaviour and performance to be the result of conscious choices, and,
therefore, individuals’ motivation to expend effort is based on their expectation of success. The source
of motivation is based on high levels of valence, instrumentality and expectations. Employees will tend
to perform tasks when greater value is attributed to the reward and the probability of performing the
task well.
ERG theory
Alderfer (1972)
This theory argues that motivation arises from the drive to satisfy three types of needs: existence,
relationship and growth. In this theory, individuals can be motivated by needs at different levels. The
frustration of needs at a higher level leads people to return to needs at a lower level, even if these have
already been fulfilled. The source of motivation is the satisfaction of needs. Employees have existence,
relationship and growth needs and move flexibility between levels of the hierarchy of needs, since they
feel simultaneously motivated by several levels to achieve the basic goal of self-realisation.
Job characteristics model
Hackman and Oldham (1976)
This model postulates that five characteristics of work contribute to employees’ income and motivation.
They will tend to increase their work performance levels according to job characteristics associated with
variety, identity, meaning, autonomy and feedback within their organisation.
Learned needs theory
McClelland (1961)
This theory states that motivation results from the drive to satisfy three types of needs: achievement,
affiliation and power. These needs have differing weights among individuals, varying over time and
depending heavily on their interaction with their environment. The source of motivation is socially
acquired needs. Employees have achievement, affiliation and power needs, but one of these has more
influence than the rest.
Goal-setting theory
Locke and Latham (1984)
This theory explains that, for individuals to be motivated and perform well, they need to set goals and
outline objectives that guide their actions. Their source of motivation is the objectives they want to
achieve. Employees will tend to meet their goals (i.e. sources of emotions and desires).
Self-determination theory
Deci and Ryan (1985)
This theory distinguishes between various types of motivation based on the various reasons or goals
that give rise to actions. This approach explains that motivation must be seen as a continuous process
that goes from the absence of motivation to intrinsic motivation and, finally, extrinsic motivation. The
source of motivation is the satisfaction of internal needs. Employees will tend to look for challenges that
are compatible with their skills acquisition capabilities, based on their interaction with stimuli that
provoke them to actions meant to achieve the goal of self-determination.
Source: Author.
2.2 Performance
Most organisations currently use performance goals to influence
their employees’ behaviour. However, the results are not always
what these organisations expect. As a result, managers are
always concerned about whether performance goals have the
right impact on individuals’ behaviour and organisational
performance. These goals have been conceptualised as defining
the frontier that differentiates success from failure. Performance
targets, especially in the area of sales, are almost always
associated with monetary incentives, so-called ‘bonuses’. In
addition to their base salary, sales people are entitled to receive
these monetary incentives if they meet or exceed the objectives
stipulated by their organisation. Churchill, Ford, Hartley and
Walker (1985, p. 116) argue that ‘performance is behaviour
evaluated in terms of its contributions to the goals of the
organisation’. According to Churchill et al. (1985) and Küster and
Canales (2008), performance is defined as the result of
behaviour, which is assessed in terms of contribution to
companies’ objectives, and determined by factors that, in part,
managers can control. Table 2 presents a general summary of the
components of behavioural performance and performance
results of sales teams.

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Table 2 - Components of sales team behavioural performance
and performance results
Sales Team Behavioural
Performance
Sales Team Performance Results
Technical knowledge
More customers/new accounts
Attitude
Participation in the growth of the
company’s business (i.e. market share)
Teamwork
Fulfilment of goals and objectives
Commitment/involvement
Client satisfaction
Customer support and other
support activities
N/a
Plans
N/a
Source: Adapted from Babakus, Craven, Johnston and Moncrief (1996),
Behrman and Perrault (1982), Cravens, Ingram, LaForge and Young (1993).
3. Methodology
This study was based on descriptive research that used a
questionnaire to collect the data. For greater convenience, the
type of sampling adopted was non-probabilistic. The survey
focused on the pharmaceutical sector, specifically targeting
companies’ sales force that operate in Portugal, for a total
sample of 326 employees. For this study, we opted for three
approaches in the analysis of quantitative data. A more classical
approach was used to characterise the sociodemographic and
variable data, as well as simple descriptive statistics. The other
approach applied was structural equation modelling, with the
objective of validating the proposed conceptual model. Table 3
summarises the intrinsic and extrinsic motivational factors
extracted from the literature review.
Table 3 - Intrinsic and extrinsic factors
Intrinsic Factors
F1 Autonomy
F5 Skills acquired
F2 Responsibility
F6 Personal and professional
fulfilment
F3 Competition – being the best
F7 Appreciation for business
F4 Project challenge
F8 Personal goals
Extrinsic Factors
F9 Status
F21 Job stability
F10 Possibility of promotion
F22 Participation in top
management meetings
F11 Work environment
F23 Leadership style
F12 Productivity award
F24 Work conditions
F13 Royalties materials (e.g. cars,
mobile phones and trips)
F25 Safety at work
F14 Leadership recognition
F26 Company politics
F15 Contact with customers
F27 Social relationships
F16 Continuous training
F28 Trust in the company
F17 Career development
opportunity
F29 Leisure activities
F18 Transparency and loyalty in
interactions with bosses
F30 Direct access to hierarchy
F19 Freedom of action in
interactions with customers
F31 Participation in objectives
F20 Interpersonal relationship
between colleagues and managers
F32 Communication between
managers
Source: Adapted from the theories of Almeida (1996), Chiavenato (1999),
Deci and Ryan (1985), Hackman and Oldham (1976), Herzberg (1968),
Locke and Latham (1984), Maslow (1954), McClelland (1961), McGegor
(1960), Shapiro (1988) and Vroom (1964).
Based on the literature review of the most important research in
the field and the variables defined for the present study, several
hypotheses were elaborated as summarised in the theoretical
model presented in Figure 1.
Figure 1 - Conceptual framework of proposed theoretical model
Source: Author.
The hypotheses developed are as follows:
 H1: Intrinsic motivational factors (1, 2, 3, 4, 5, 6, 7 and 8)
influence the motivation of sales teams.
 H2: Extrinsic motivational factors (9, 10, 11, 12, 13, 14, 15, 16,
17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32)
influence the motivation of sales teams.
 H3: Motivation influences sales teams’ performance results.
 H4: Motivation influences sales teams’ behavioural
performance.
4. Results
The sample is characterised by male (60%) and female (40%)
individuals, with those aged between 30 and 50 years representing
the majority of respondents (66%). Most respondents were
married, and they had between one and two children.
Regarding qualifications and competencies, respondents
reported having a bachelor degree (57.1%) and/or doctorate
(12.8%). Most respondents had between 5 and 15 years of work
experience. This reflects that the pharmaceutical industry’s core
business sells highly technological products that require their
professionals to be highly qualified.
As shown in Figure 2 and Figure 3, the average scores – based on
a seven-point Likert scale – for all intrinsic factors are high and
close to each other, with the highest value given to ‘personal
goals’ and the lowest to ‘competition’. For extrinsic factors, the
average scores are also high and close to each other, with the
highest value going to ‘transparency and loyalty in interactions
with bosses’ and the lowest value to ‘status’.
Figure 2 - Measures of centrality of intrinsic motivational factors
(average)
Source: Author.

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T. S. Ferreira / Tourism & Management Studies, 13(1), 2017, 60-65
Figure 3 - Measures of centrality of extrinsic motivational factors (average)
Source: Author.
Regarding performance, the variables ‘attitude’ and
‘commitment’ have the highest averages, as shown in Figure 4.
The variables ‘customer satisfaction’ and ‘achievement of goals
and objectives’ were given greater importance by the
respondents.
Figure 4 - Measures of centrality of behavioural performance and performance results (average)
Source: Author.
The proposed structural model suggests that intrinsic and
extrinsic factors affect motivation. In order to measure the direct
effect of motivation on behavioural and performance results,
these constructs were analysed using regressions, followed by
path analysis (Marôco, 2010).
As shown in Figure 5, the factorial weight of intrinsic factors in
motivation is one, and the factorial weight of the extrinsic factors
is 0.98. All variables present positive factor weights reaching
maximum values that confirm hypotheses H1 and H2. Motivation
has a relatively strong and significant positive effect on
performance results (0.54) and a weaker impact on behavioural
performance (0.41), confirming hypotheses H3 and H4.
Figure 5 - Confirmation of hypotheses
Source: Author
Attitude
Commitment /
involvement
Teamwork
Customer support and
other support activities
Technical knowledge
Plans
Client satisfaction
Fulfilment of goals and
objectives
Participation in growth of
company's business
More customers/new
accounts

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5. Conclusion
The conclusions we have drawn have implications primarily for
managers of pharmaceutical sales teams, but we also believe that
the results could be of interest to managers working in other
sectors, given that maintaining teams motivated, satisfied and
committed is a common management goal. This study showed
that the theories of motivation reviewed complement each other
and contribute to the design of a more comprehensive
perspective on individuals’ natural complexity in this area.
The results of the present research on intrinsic and extrinsic
motivational factors indicate that the intrinsic variables that best
explain motivation are ‘personal goals’ and ‘skills acquired’ The
extrinsic variables that best explain motivation are ‘transparency
and loyalty in interactions with bosses’ and ‘trust in the
company’. Motivation influences behavioural performance more
than performance results. Individuals with a better attitude (i.e. a
behavioural variable) who participate in their company’s business
growth (i.e. a results variable) are more motivated and achieve a
higher level of performance.
The results also indicate that intrinsic factors such as ‘autonomy’
and ‘responsibility’ and extrinsic factors such as ‘interpersonal
relationships’, ‘work environment’, ‘working conditions’ and
‘participation in objectives’ play a significant role in the sales
teams’ overall motivation. This study’s findings confirm that
managers need to pay attention to the most important factors
influencing the motivation of their companies’ sales force in
order to optimise these factors.
This research’s limitations include some restrictions to the
generalisation of results due to the size and type of sample used.
Future research could replicate this study in other sectors of
activity.
Organisations need to change the way they view motivation, so
the results of empirical research on this subject, such as those of
the present study, need to be disseminated so that their benefits
are clear. Managers can use these to optimise their
organisational policies and strategies to enhance their
employees’ satisfaction, performance and sales earnings.
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Received: 25 June 2016
Accepted: 10 November 2016