EFFECT OF MOTIVATION ON SALES FORCE PERFORMANCE: A CASE OF SELECTED PHARMACEUTICAL IMPORTING COMPANIES IN ADDIS ABABA

Abstract

The sales force is an asset of any organization. Improving performance of sales force through motivation has always been a prime chore among organization and researcher. Sales motivation entirely depends on the quality of management provided by the first-line sales controller. With the help of financial and non-financial incentives one can motivate the sales force for possible enhanced sales performance. So far studies on the effect of motivation on sale performance have not been well addressed. Taking this into account, this study therefore sought to fill the gap by assessing the effect of motivation on sales force performance. The objective of the study was to analyze the impact of motivation on sales force performance by selecting three pharmaceutical companies in Addis Ababa as a case study. And the study purposively focused on employees engaged on sales activities. The researcher was primarily based on primary data collected through a structured questionnaire. To this respect, a total of 114 questionnaires were distributed to employees of selected pharmaceutical importing companies. The study collected data from 86 respondents which constituted response rate of 75.4 % which was adequate for statistical generalization of the study findings. The information was displayed by use of charts and tables. The researcher further employed a multiple linear regression model to analyze the relationship between motivational factors and sales force performance. The results show that allowing sales force employees to participate in decision making and career advancement positively and significantly influence the level of sales force performance of pharmaceutical companies in Addis Ababa. Likewise, work experience is significant and negatively related to sales force performance and in case of gender sales force performance is positively significant when gender is male. However, financial motivators and working environment were positively but not significantly related to sales force performance. The results of the study may suggest that pharmaceutical companies need to give more emphasis on the participation of decision making and career advancement aspects of their sales personnel to enhance performance.