Determinants of Sales Force Performance in Banking Sector: A Case of Malaysia
Abstract
Globalisation, deregulation, technology, competition and new customers’ needs influence the banks to adopt marketing approach in promoting their product and services to generate income. In this aspect, personal selling which focuses on selling skills of banking employees becomes a very important banking function. This study intends to investigate the relationship between the determinants namely teamwork, learning, leadership, communication and, high performance culture and Key Performance Indicators (KPI). Inspite of the importance of KPI in measuring performance of salesforce, there is a lack of published empirical findings to explain the influence of these predictors on KPI achievement in banking sector.This study reported that the model explains 0.21 percent of the variance in KPI achievement. In which teamwork and high performance culture are found to be positive and significantly related. This new finding appears to imply that bank should cultivate and promote teamwork and high performance culture to ensure KPI highly achievable and enhance banks profitability.Downloads
References
Albrecht, S. L. (2013). The Influence of job, team and organizational level resources on employee well being, engagement, commitment and extra-role performance. Interntaional Journal of Manpower, 33(7), 840–853.
Bell, S. J., Menguc, B. & II, R. E. (2010). Salesperson learning, organizational learning and retail store performance. Journal of the Academic Marketing Science, 38, 187-201. DOI: https://doi.org/10.1007/s11747-009-0149-x
Callahan, T. (2003). How Do You Know Where You're Going if You Don't Know Where You Are? Business credit-new york then columbia md-, 105(9), 50-53.
Chen, J. C. & Silverthorne, C. (2005). Leadership effectiveness, leadership style and employee readiness. Leadership & Organization Development Journal, 26(4), 280–288. DOI: https://doi.org/10.1108/01437730510600652
Crandall, R. E. (2002). Keys to better performance measurement. Industrial Management.
Doç, Y., Akdem, B. & Erdem, O. (2010). Characteristics of high performance. The Journal of Faculty of Economics and Administrative Sciences, 15(1), 155–175.
Downing, J. R. (2011). Linking Communication Competence with Call Centre Agent's Sales Effectiveness. Journal of Business Communication, 48(4), 409-425. DOI: https://doi.org/10.1177/0021943611414539
Dwyer, S., Hill, J. & Martin, W. (2000). An empirical investigation of critical success factors in the personal
Selling process for homogenous goods. Journal of Personal Selling & Sales Management, 20(3), 151-159.
El-Ansary, A. I., Zabriskie, N. B. & Browning, J. M. (1993). Sales teamwork : A dominant strategy for improving saleforce. The Journal of Business & Industrial Marketing, 8(3), 65. DOI: https://doi.org/10.1108/08858629310044183
Fohlke, M. C. (2006). Sales Presentation Skill and Sales Job Performance. Journal of Business and Industrial Marketing, 21(5), 311-319. DOI: https://doi.org/10.1108/08858620610681614
Goebel, D. J., Deeter-Schmelz, D. R. & Kennedy, K. N. (2013). Effective Sales Management : What Do Sales People Think ? Listening Skills Customer Relationship Development Open Communication Sales Rep Self-Efficacy Representative Job Performance Effective Feedback Satisfaction With Manager. Journal of Marketing Development and Competitiveness, 7(2), 11–23.
Govaerts, N., Kyndt, E., Dochy, F. & Baert, H. (2011). Influence of learning and working climate on the retention of talented employees. Journal of Workplace Learning, 23(1), 35–55. DOI: https://doi.org/10.1108/13665621111097245
Grasing, R. (2003). Branch performance by the new numbers. Journal of Performance Management, 16(3), 3.
Griffin, M. A., Patterson, Malcolm, G. & West, M. A. (2001). Job satisfaction and teamwork : The role of supervisor support. Journal of Organizational Behaviour, 22(5), 537. DOI: https://doi.org/10.1002/job.101
Harrim, H. M. (2010). Relationship between Learning Organization and Organizational Performance (Empirical Study of Pharmaceutical Firms in Jordan ). Jordan Journal of Business Administration, 6(3), 405–425.
Jantan, M. A. & Honeycutt Jr, E. D. (2013). Current sales training practices in the commercial retail banking industry in Malaysia. Services Marketing Quarterly, 34(1), 1-17. DOI: https://doi.org/10.1080/15332969.2013.739876
Jaramillo, F., Grisaffe, D. B., Chonko, L. B. & Roberts, J. A. (2009). Examining the impact of servant leadership on sales force performance. Journal of Personal Selling and Sales Management, 29(3), 257-275. DOI: https://doi.org/10.2753/PSS0885-3134290304
Johlke, M. C. & Duhan, D. F. (2001). Testing competing models of sales force communication. The Journal of Personall Selling & Sales Management, 21(4), 265.
Johnson, J. S. & Sohi, R. S. (2014). The curvilinear and conditional effects of product line breadth on salesperson performance, role stress, and job satisfaction . Journal of the Academy of Marketing Science, 42, 71–89 DOI: https://doi.org/10.1007/s11747-013-0339-4
Karr, J. (2005). Performance measurement in banking: beyond ROE. Journal of Performance Management, 18(2), 56.
Kohli, A. K., Shervani, T. A. & Challagalla, G. N. (1998). Learning and Performance Orientation of Salespeople : The Role of Supervisors. Journal of Marketing Research, XXXV, 263–274. DOI: https://doi.org/10.1177/002224379803500211
Kuvaas, B. (2007). Different relationships between perceptions of developmental performance appraisal and work performance. Personal Review, 36, 378–397. DOI: https://doi.org/10.1108/00483480710731338
Loveland, J. M., Lounsbury, J. W., Park, S. & Jackson, D. W. (2015). Are salespeople born or made ? Biology , personality , and the career satisfaction of salespeople. Journal of Business & Industrial Marketing, 30(2), 233–240 DOI: https://doi.org/10.1108/JBIM-12-2012-0257
MacKenzi, S. B. & Podsakoff, P. M. (2001). Transformational and transactional leadership and salesperson performance. Academy of Marketing Science Journal, 29(2), 115. DOI: https://doi.org/10.1177/03079459994506
Mantrala, M., Sridhar, S. & Dong, X. (. (2012). Developing India-centric B2B sales theory: an inductive approach using sales job ads. Journal of Business & Industrial Marketing, 27(3),169 - 175. DOI: https://doi.org/10.1108/08858621211207207
Mualla, N. D. (2011). Assessing and measuring sales culture within commercial banks in Jordan. EuroMed Journal of Business, 6(2), 227–252.
Nesbit, P. L. (2005). HRM and the Flexible Firm : Do Firms with “ High Performance †Work Cultures Utilise Peripheral Work Arrangements ? International Journal of Employment Studies, 13(2), 1–18.
Nik Kamariah, N. M. (1995). Determinants of sales performance in insurance industry: A cross cultural comparison between the United kingdom and Malaysia. Unpublished doctoral thesis. University of Aston. UK.
Panagopoulos, N. & Dimitriadis, S. (2009). Transformational leadership as a mediator of the relationship between behavior-based control and salespeople’s key outcomes An initial investigation. European Journal of Marketing, 43(7/8), 1008-1031. DOI: https://doi.org/10.1108/03090560910961498
Piercy, N. F., W.Cravens, D., Nikala, L. & Vorhies, D. W. (2006). Driving Organizational Citizenship Behaviors and Salesperson In-Role Behaviour Performance: The Role of Management Control and Perceived Organizational Support . Journal of the Academy of Marketing Science, 34(2). DOI: https://doi.org/10.1177/0092070305280532
Rabey, G. (2003). The paradox of teamwork. Industrial and Commercial Training, 35(4), 158 –162. DOI: https://doi.org/10.1108/00197850310479141
Robson, I. (2005). Implementing a performance measurement system capable of creating a culture of high performance. International Journal of Productivity and Performance Management, 54(2), 137–145 DOI: https://doi.org/10.1108/17410400510576621
Rodriguez, D., Patel, R., Bright, A., Gregory, D. & Gowing, M. K. (2002). Developing competency models to promote integrated human resource practices. Human Resource Management, 41(3), 309–324 DOI: https://doi.org/10.1002/hrm.10043
Shannahan, K. L. J., Bush, A. J. & Shannahan, R. J. (2013). Are your salespeople coachable ? How salesperson coachability, trait competitiveness, and transformational leadership enhance sales performance. Journal of The Academy of Marketing Science, 41, 40–54.
Scudder, J. N. & Guinan, P. J. (1989). Communication competencies as discriminators of superiors' ratings of employee performance. Journal of Business Communication, 26(3), 217-229. DOI: https://doi.org/10.1177/002194368902600302
Shannahan, K. L., Bush, A. J. & Shannahan, R. J. (2013). Are your salespeople coachable? How salesperson coachability, trait competitiveness, and transformational leadership enhance sales performance. Journal of the Academy Marketing Science, 41, 40–54 DOI: https://doi.org/10.1007/s11747-012-0302-9
Spencer, L. M. & Spencer, S. M. (1993). Competence at work: Models for superior performance. New York: John Wiley & Sons, Inc.
Schwepker, Jr C. H. & Good, David, J. (1999) "The impact of sales quotas on moral judgment in the financial services industry. Journal of Services Marketing, 13(1), 38-58. DOI: https://doi.org/10.1108/08876049910256096
Schwepker, C. H. & Good, D. J. (2010a). Transformational Leadership and its Impact on Sales Force Moral Judgment. Journal of Personal Selling and Sales Management, 30(4), 299–318. DOI: https://doi.org/10.2753/PSS0885-3134300401
Titko, J. & Lace, N. (2010). Performance Measures for a Business Unit in Latvian Retail Banking. In 6-th International Scientific Conference Business and Management 2010 (pp. 13-14). DOI: https://doi.org/10.3846/bm.2010.035
Verbeke, W., Dietz, B. & Verwaal, E. (2011). Drivers of Sales performance: A contemporary meta analysis: Have salespeople becomes knowledge workers. Journal of Academy Marketing Science, 39, 407-428. DOI: https://doi.org/10.1007/s11747-010-0211-8
Williams, M. R. & Attaway, J. S. (1996). Exploring salespersons’ customer orientation as a mediator of organizational culture's influence on buyer-seller relationship. Journal of Personal Selling and Sales Management, XVI(4), 33–52.
Wu, H. Y. (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and Program Planning, 35, 303-320. DOI: https://doi.org/10.1016/j.evalprogplan.2011.11.009
Wua, H. Y., Tzeng, G. H. & Chen, Y. H. (2009). A fuzzy MCDM approach for evaluating banking performance based on Balanced Scorecard. Expert Systems with Applications, 36(6), 10135–10147. DOI: https://doi.org/10.1016/j.eswa.2009.01.005
Yukl, G. (2012). Effective leadership behaviour: What we know and what questions need more attention. Academy of Management Perspectives, 2, 66-85. DOI: https://doi.org/10.5465/amp.2012.0088
Zakaria, Z., Yaacob, M., ‘Aini, Yaacob, Z., Noordin, N., Sawal, M. Z. H. M. & Zakaria, Z. (2011). Key Performance Indicators (KPIs) in the Public Sector: A Study in Malaysia.Asian Social Science, 7(7), 102-108. DOI: https://doi.org/10.5539/ass.v7n7p102
Copyright (c) 2016 Information Management and Business Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.