Chapter Summary

Leadership—a process in which one person influences other people’s behavior toward the accomplishment of specific goals—is essential for a sales manager to be effective. Effective leaders tend to possess similar personal characteristics, such as high levels of self-confidence, initiative, energy, creativity, and maturity. In addition, effective leaders possess advanced managerial skills, including the ability to solve problems, communicate, persuade, and understand what motivates each salesperson.

Leadership style refers to the specific set of leader behaviors that sales managers put forth in a given situation. There are two distinct styles: transactional leadership and transformational leadership. Transactional leadership involves those supervisory activities regarding the day-to-day operation and control of the sales force. It presents a short-term, task-oriented focus on getting the job done. Transactional leaders provide one-way communication to salespeople in the form of verbal feedback, letting them know what they are doing right and wrong.

Transformational leadership changes (transforms) the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations. Those who use this style are outstanding leaders—usually referred to as charismatic. The primary transformational leader behaviors are articulating a vision of the future, fostering group goals, being a role model, and providing individualized support.

Both transactional and transformational leadership can be an effective way to lead salespeople. The situation determines the appropriate style or combination of styles. The best sales managers instinctively know the right mix of leader behaviors to use for any given situation.

The best way to lead a sales force is through face-to-face, personal contact. Due to lack of time or to distance, however, sales managers must supplement personal contact with other tools and techniques of leadership. These include sales reports, telecommunications, sales meetings, printed aids, and indirect supervisory aids.

A number of positive outcomes result from the right combination and amount of leadership. First, the salespeople are generally better trained and the work environment is characterized by mutual respect and trust among all employees. This in turn leads to higher performing salespeople who are more likely to engage in citizenship behaviors. Finally, the right leadership leads to a sales force with high group morale.

Some frequent problems encountered by leaders include poor performance, substance abuse, expense misappropriation, other unethical behavior, and sexual harassment. Each problem needs to be dealt with proactively to avoid potentially serious consequences.