Skill in administering the quota system is basic not only to realizing the full benefit for control purposes, but to securing staff cooperation in making the system work. Most critical is securing and maintaining acceptance of the quotas by those to whom they are assigned. Few people take kindly to having yardsticks applied to their performance. Constitutionally, most sales personnel oppose quotas, and anything that makes them doubt the accuracy, fairness, or attainability of those quotas makes them less willing to accept them, thus reducing the system\u2019s effectiveness.<\/p>\n\n\n\n
Accurate, Fair, and Attainable Quotas<\/p>\n\n\n\n
Good quotas are accurate, fair and attainable. Obtaining accurate quotas is a function of the quota-setting procedure: the more closely quotas are related to territorial potentials, the greater the chances for accuracy. But, in addition, regardless of the type of quota-sales volume, budget, activity, or combination sound judgment is important in analyzing market data, adjusting for contemplated policy changes (and for conditions unique to each territory), and appraising changes in personnel capabilities, as well as in setting the final quotas. Accurate quotas result from skillful blending of planning and operating information with sound judgment. Setting a fair quota involves determining the proper blend of sales potential and previous experience.<\/p>\n\n\n\n
Admittedly, whether quotas are fair and attainable depends not only upon the quality of management\u2019s judgment but upon the capabilities and motivations of sales force. Sometimes, perhaps even usually, the extent to which a salesperson\u2019s quota is fair and attainable can only be ascertained after performance has been recorded. Even then, management must exercise care in appraising variations from the quota-to what extent are they attributable to quota inaccuracies and to what extent to salesperson inadequacies? After all, quotas are not absolute performance standards, and errors are made in setting them.<\/p>\n\n\n\n
If management believes that its quota-setting procedure produces accurate quotas and is confident that fair quotas are being assigned, then they should be attainable. Most quota- setting errors are those of judgment, most traceable to setting quotas above each salesperson\u2019s expected performance to provide an incentive for improvement. Quotas that some sales personnel fail to attain are not necessarily unfair-whether they are or not depends on who fails to attain them. One executive offers this general rule. \u201cYou have set equitable quotas if your weaker people fail to attain them, and if you\u2019re better people either reach or slightly exceed them.\u201d Thus, in ascertaining fairness, management faces a possible dilemma because the quotas themselves are the performance standards most used for appraising the quality of sales personnel. Clearly, subjective evaluations of sales personnel according to qualitative performance criteria are required to ascertain whether quotas are fair.<\/p>\n\n\n\n
Usually the sales department is responsible for establishing the sales quota, and no approval of a higher executive is needed. Within the sales organization, the task may rest with any of several executives. The chief sales executive may be responsible for setting the total company quota. But the individual breakdown may be delegated down through the regional and district managers. Or territorial sales potentials may be given to the district managers, and they set the salespeople\u2019s quotas. Many attributes found it good compensation plans, territorial designs, and other aspects of sale management are also found in good quota plans.<\/p>\n\n\n\n
Characteristics of a Good Quota Plan<\/p>\n\n\n\n
Skill in administering the quota system is basic not only to realizing the full benefit for control purposes, but to securing staff cooperation in making the system work. Most critical is securing and maintaining acceptance of the quotas by those to whom they are assigned. Few people take kindly to having yardsticks applied to their…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105758","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n