Sales Psychology and Sales Compensation Plan Design

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  • เผยแพร่เมื่อ 5 ก.ย. 2024
  • Are salespeople coin-operated? Can we tweak the dials on commission & incentive plans to drive more motivation and discretionary effort?
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    When you’re looking at how psychological theory may play a role in sales compensation, perhaps the best example to look at is the work that Frederick Herzberg did in the 1960s. He proposed a two-factor theory of motivation, which we know better as intrinsic versus extrinsic. The theory states that there was a set of factors that would lead to increased employee satisfaction, while there was a corresponding set of factors that could cause employee disenchantment.
    Herzberg argued that extrinsic factors were the most important ones in the workplace. These are the “hygienic factors” that drive job satisfaction and motivate employees in the workplace.
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