SALES MANAGEMENT III

CHAPTER 6: SALES FORCE LEADERSHIP

CHAPTER OBJECTIVES:
• The objectives of this chapter are to:
• Define leadership.
• Differentiate leadership from
management.
• Discuss the theories and models
sustaining leadership styles and types.
• Discuss the qualities and skills needed
for effective leadership
• Discuss ethical issues in relation to
leadership.
LEADERSHIP QUOTES
WHAT IS LEADERSHIP?
• "Leadership is a function of knowing
yourself, having a vision that is well
communicated, building trust among
colleagues, and taking effective action
to realize your own leadership potential."
Prof. Warren Bennis

• Ability to influence other can be with

or without authority.
• Therefore, leadership can be
summed up as the ability to develop a
vision that motivates others to move with a
passion toward a common goal
 WHAT IS LEADERSHIP?
• Leadership is foremost a relationship between
leaders and followers. The foundation of these
relationships is TRUST.
• Without followers there is no such thing as
leadership.
• Leadership is a form of SERVICE to others, a
stewardship, a special trust, a duty, a social
responsibility.
• Leadership and ethics must be unified.

©2015
 LEADERSHIP
• Leadership is defined as influencing others to work
diligently toward achieving their goals.

1. Clearly stating your

vision!

2. Explaining your plan for

attaining your vision!

3. Instilling confidence
and optimism!

4. Expressing confidence
in those you lead!!!

10
 LEADERSHIP IS NOT
MANAGEMENT
“Not all leaders are managers, nor are all managers
leaders”
• Managers
• People whose influence on others is limited to the
appointed managerial authority of their positions
and policies and procedures of the firm.
• Leaders
• People with both managerial and personal power
who can influence others to perform actions
beyond those that could be dictated by those
persons’ formal (position) authority alone.
 LEADER VS MANAGER

Leaders:
Do the right thing

Manager:
Do things right
Leadership
The ability to influence a
group toward the
achievement of goals

Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members
 LEADERSHIP VS MANAGEMENT

• Management seeks stability & predictability

• (order)

• Leadership seeks improvement through change

• (disorder)
 ATTRIBUTES OF A LEADER

• Guiding vision: Effective leaders know what

they want to do, and have the strength of
character to pursue their objectives in the face
of opposition and in spite of failures. The
effective leader establishes achievable goals.
• Passion: Effective leaders believe passionately
in their goals. They have a positive outlook on
who they are, and they love what they do. Their
passion for life is a guiding star for others to
follow, because they radiate promise!
ATTRIBUTES OF A LEADER

• Integrity: Because they know who they

are, effective leaders are also aware of
their weaknesses. They only make
promises they can follow through on.
• Honesty: Leaders convey an aura of
honesty in both their professional and
their personal lives.
• Trust: Effective leaders earn the trust
of their followers and act on behalf of
their followers.
 ATTRIBUTES OF A LEADER

• Curiosity: Leaders are learners. They wonder

about every aspect of their charge. They find
out what they need to know in order to pursue
their goals.
• Risk: Effective leaders take calculated risks
when necessary to achieve their objectives. If a
mistake is made, the effective leader will learn
from the mistake and use it as an opportunity to
explore other avenues.
 ATTRIBUTES OF A LEADER
• Dedication: The effective leader is dedicated to
his or her charge, and will work assiduously on
behalf of those following. The leader gives
himself or herself entirely to the task when it is
necessary.
• Charisma: This may be the one attribute that is
the most difficult to cultivate. It conveys
maturity, respect for your followers,
compassion, a fine sense of humor, and a love
of humanity. The result is that leaders have the
capability to motivate people to excel.
• Listening: Leaders Listen! This is the most
important attribute of all, listen to your
followers.
 Leadership Traits and Skills

Traits Skills
• Adaptable to situations • Clever (intelligent)
• Alert to social environment • Conceptually skilled
• Ambitious and achievement orientated • Creative
• Diplomatic and tactful
• Assertive • Fluent in speaking
• Cooperative • Knowledgeable about group task
• Decisive • Organised (administrative ability)
• Dependable • Persuasive
• Socially skilled
• Dominant (desire to influence others) Stogdill, 1974
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
 THEORIES SUSTAINING LEADERSHIP
GREAT MAN
THEORIES
o Great man theories were the
first attempt in studying
leadership.
o -Based on the idea that
leaders are “born.”
o Additional approaches have
been developed— trait
theories, behavioral theories,
and modern-day contingency
theories.
o Emphasis today is that
leadership styles should match
the situation at hand, which is
a contingency approach.
 TRAIT THEORIES

Traits Theories of
Leadership Leadership
LeadershipTraits
Traits
Theories that consider •• Extraversion
Extraversion
personality, social, physical,
•• Conscientiousness
Conscientiousness
or intellectual traits to
differentiate leaders from •• Openness
Openness
nonleaders •• Emotional
EmotionalIntelligence
Intelligence
(Qualified)
(Qualified)

Great Man Theories

• Leaders are exceptional people,
born with innate qualities, destined
to lead
TRAIT THEORIES

Limitations
Limitations
•• No
Nouniversal
universaltraits
traitsfound
foundthat
thatpredict
predictleadership
leadership ininall
all
situations
situations
•• Unclear
Unclearevidence
evidenceofofthe
thecause
causeand
andeffect
effectofofrelationship
relationshipofof
leadership
leadershipand
andtraits
traits
•• Better
Betterpredictor
predictorofofthe
theappearance
appearanceofofleadership
leadershipthan
than
distinguishing
distinguishingeffective
effectiveand
andineffective
ineffectiveleaders
leaders
 BEHAVIOURAL THEORIES
• As studies seeking to identify traits failed bring conclusive results,
researchers from Ohio State University (in 1940) conducted a study
across various sectors.
• They used the LBDQ to identify common leadership behaviours.
• The results of the study showed that there were two groups of
behaviours that were strongly correlated.
• These were; People-oriented behaviours and Task-oriented behaviours.

• People-oriented behaviours (PoB)

• PoB leaders focus on ensuring that the inner needs of people are
satisfied, hence they put emphasis on human relations.
• They rely on staff motivation as means of achieving tasks.
• Their focus is on; encouraging., observing, listening, coaching and
mentoring.
 BEHAVIOURAL THEORIES
• Task-oriented behaviours (ToB)
• ToB leaders focus on the organisational structure, operation
procedures and they like to keep control.
• They are also concerned about staff motivation, albeit it is not their
main concern.
• Their behaviours are in line with;
• Initiating
• Organising
• Clarifying
• Information gathering
 BEHAVIOURAL THEORIES

• Rensis Likert’s Michigan • Leaders behaviour and actions,

Studies (1950s) identified rather than their traits and skills e.g.
three characteristics of production oriented or people
leadership. orientated.
• Two are akin to those of
• Different leadership behaviours
the Ohio studies.
categorised as ‘leadership styles’
• The two leader behaviours e.g. autocratic, persuasive,
are; job-centered consultative, democratic.
(production) and
employee-centered.
• The third one was the
need to balance task and
relationship emphasis
(participative mgt.)
 BEHAVIORAL THEORIES

Theories proposing that specific behaviors differentiate

leaders from nonleaders.

Behavioral
BehavioralTheory
Theory
Leadership
Leadershipbehaviors
behaviorscan
canbe
betaught.
taught.
vs.
vs.
Trait
TraitTheory
Theory
Leaders
Leadersare
areborn,
born,not
notmade.
made.
 BEHAVIORAL APPROACH

• Assumption: Leaders can be trained

• Goal: Develop leaders

• Problem: Effective behaviors do not generalize

across situations.
BEHAVIOURAL LEADERSHIP STYLES
• Autocratic/ Authoritarian:
A leader who;
• Sets goals individually
• Engages primarily in one-way, downward communication
• Controls discussions of followers
• Sets policy and procedures unilaterally
• Dominates interaction
• Personally directs the completion of tasks
• Provides infrequent positive feedback
• Rewards obedience and punishes mistakes
• Exhibits poor listening skills
• Uses conflict for personal gain
BEHAVIOURAL LEADERSHIP STYLES
• Democratic leader:
• A style of leadership in which the
leaders takes collaborative, responsive,
interactive actions with followers
concerning the work and the work
environment.
• A leader involves employees in
decision making, delegates authority,
encourages participation in deciding
work methods and goals, and uses
feedback to coach employees.
BEHAVIOURAL LEADERSHIP STYLES
• Therefore, democratic leaders:
• Involves followers in setting goals
• Engages in two-way, open communication
• Facilitates discussion with followers
• Solicits input regarding determination of policy and
procedures
• Focuses interaction
• Provides suggestions and alternatives for the
completion of tasks
• Provides frequent positive feedback
• Rewards good work and uses punishment only as a
last resort
• Exhibits effective listening skills
• Mediates conflict for group gain
BEHAVIOURAL LEADERSHIP STYLES
• Laissez-Faire leadership:
• A style of leadership in which the leader fails to accept the
responsibilities of the position.
• Laissez-Faire (“leave them alone”) leaders:
• Allows followers free rein to set their own goals
• Engages in noncommittal, superficial communication
• Avoids discussion with followers to set policy and
procedures
• Avoids interaction
• Provides suggestions and alternatives for the completion
of tasks only when asked to do so by followers
• Provides infrequent feedback of any kind
• Avoids offering rewards or punishments
• May exhibit either poor or effective listening skills
• Avoids conflict
SITUATIONAL/CONTINGENCY THEORIES
• Behavioural theories does not provide guidance to effective
leadership in different situations.
• Leadership style changes according to the 'situation‘ and in response to the
individuals being managed – their competency and motivation
CONTINGENCY THEORY

• Contingency theory identifies:

• Key situational factors,
• Specifies how they interact, and
• Determines best leadership
approach.
• This is called situational
leadership.
SITUATIONAL LEADERSHIP THEORY
LEADERSHIP TYPES

• There are three leadership types

namely;

• Transactional leadership ,

• Transformational leadership and,

• Situational leadership.
TRANSACTIONAL LEADERSHIP
• Also known as managerial leadership.

• Leadership actions that focus on accomplishing

the tasks at hand and on maintaining good
working relationships by exchanging promises of
rewards for performance as a form of motivation.

• Transactional leadership is type of leadership

where the leader promotes compliance from the
subjects by building relationships based on laid
down rules, standards policies and procedures,
and take corrective action.
 TRANSACTIONAL LEADERSHIP
• The term “transactional” highlights the exchange (rewards for
performance) nature of motivation.
• It follows more of a telling quadrant of the situational leadership
theory.
• There is passive engagement between the leader and followers,
motivating people only on base level therefore making it difficult
where higher order skills are needed.
• Transactional leaders tend to think inside the box when solving
problems.
• They usually slow to respond to and take advantage, hence
reactive to market changes (ever chasing shadows) due to
mechanistic and rigid hierarchal structures.
 TRANSFORMATIONAL LEADERSHIP
• Leadership actions that involve influencing major changes in the attitudes
and assumptions of organization’s members and building commitment for
the organization’s mission, objectives, and strategies.

• Transformational leadership motivates followers to:

• do more than is expected.

• see raised value in tasks.

• put group’s common cause in front of individual needs.

• Leaders inspire individuals, develop trust, and encourage creativity and
personal growth
• Individuals develop a sense of purpose to benefit the group, organisation
or society. This goes beyond their own self-interests and an exchange of
rewards or recognition for effort or loyalty.
TRANSFORMATIONAL LEADERSHIP
• Leaders who provide the four “I’s”:
• Idealized Influence: Provides vision and sense of
mission, instills pride, gains respect and trust
• Inspiration: Communicates high expectations,
uses symbols to focus efforts, expresses
important purposes in simple ways
• Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving
• Individualized Consideration: Gives personal
attention, treats each employee individually,
coaches, advises
 SITUATIONAL LEADERSHIP
• Based on situational/contingency theories.
• A model aims to provide a practical way for a leader to
decide how to adapt his or her style to the task.
• Model focuses on four leadership styles:
• The delegating style lets the members of the
group decide what to do.
• The participating style asks the members of the
group what to do, but makes the final decisions.
• The selling style makes the decision but explains
the reasons.
• The telling style makes the decision and tells the
group what to do.
LEADERSHIP AND ETHICS
• The distinguishing mark of
leadership and executive
responsibility is influencing the
moral behavior of others.
• It is vital that followers see their
leaders as ethical.
• Ethical leaders use ethical means
to get followers to achieve their
goals, and the goals themselves
are ethical.
THE ETHICAL CLIMATE: INFLUENCING
THE ACTIONS OF OTHERS

• The example of leaders - engage in socially

constructive behaviors
• Gain support and commitment from everyone to
shared values, influence moral development of others
• The quality of leader-follower relationships
• Set expectations, clear guidelines, norms
• Manage competition and stress
• Reward ethical behavior
• Punish unethical behavior
• Neutralize potentially harmful contextual forces

©2007
 WHAT OTHER FACTORS MIGHT AFFECT
WHETHER PEOPLE BEHAVE
UNETHICALLY?
• Competition
• Pressure to perform from leaders or others
• Over emphasis on measuring performance quantitatively
• Experience of high levels of unmanaged stress (e.g., due to uncertainty, ambiguity, poor
information, or rapid change)
• Economic dependence
• Opportunity
• Think they can get away with it
• Hard to detect violations or compliance
• Don’t know the standards or expectations
• May perceive that leaders are not always ethical
• Individual values not aligned with organizational or community values
• Feel as though they are mistreated, not valued, or not respected by leaders
• Something in the setting unleashes otherwise controllable impulses or negative traits

©2007
When the work is done,
the people say,
“We did it ourselves.”
- Lao-Tzu
RECRUITING IN INTERNATIONAL
SELLING
• Consideration of the dynamics of international selling.
• The recruitment process will also depend on the
international market entry strategy, domestic-based export
department or international market branch or subsidiary.
• Candidates can be sources from internal sources (i.e. cross-
transfers/promotions) and external agencies e.g.
employment agencies, media sources, etc.
• Conform to labour laws regulating recruitment processes.
• Make sure selection criteria will lead to attainment of the
best possible candidate.
• Contract and induct the selected candidate, avoid conflicting
cultural issues.