One of the major tasks facing an organization in general is an understanding of the working behaviours of the people that constitutes their organization. It is also pertinent for an organization to identify the level of motivation existing in the organization. This is not only necessary, but goes a long way in enhancing and encouraging higher performance in the work place. This project addressed the issue of effect of motivation o salesmen of “Nigerian Bottling company Plc” and its impact on sales volume. The major instruments used for the collection of data are questionnaire and seconding data. The data obtained were analysed, using frequency percentage and chi-square.
The findings shows that motivation of salesman has really helped in enhancing better performance in the work place and increasing the company sales volume, which resulted in high revenue generation while it is considered that motivation is a very important issue which when conducted in-depth and independently trigger human behaviour and affect sales volume positively.
TABLE OF CONTENTS
Table of contents
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Study
1.3 Objective of the Study
1.4 Research Hypothesis
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the study
1.8 Definition of terms
1.9 Historical background of the case Study
CHAPTER TWO: LITERATURE REVIEW
2.2 How to Motivate Salesman
2.3 Theoretical Framework
2.4 Job Enrichment
2.5 Job Enlargement
2.6 Job Rotation.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Area of Study
3.3 Population of Study
3.3.1 Sample of Study
3.3.2 Sampling Techniques
3.4 Research Instruments
3.5 Design of Questionnaire
3.6 Reliability of the Research Instrument
3.7 Problems Encountered on Questionnaire Administration
3.8 Statistical Tool Applied
3.9 Procedure for Data Collection
3.10 Procedure for Data Analysis
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Analysis and Qualitative Interpretation of Questionnaire
4.2 Analysis of Statistical Data Collected from Respondent
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Finding
5.4 Suggestion for further Studies
1.1 BACKGROUND OF THE STUDY
The question of motivation in an organizations has engaged the attention of academicians for as long as the process of managing organizations has been the subject of speculative inquiry. This should not come as a surprise in view of the nature of the phenomenon. It is a widely held belief that motivation processes, if applied appropriately and correctly play a tremendous role in enhancing sales performance. Salesman motivation involves a clear understanding of each individual salesmen’s needs (internal) and emotions all in a bid to providing inducements which will result in men and women putting their full abilities in their works.
It is not an understatement to state that there is a direct relationship between salesman motivation and sales performance. Many establishments that make use of sales personnel often have tendencies to ignore motivating them without considering the eventual consequence. Based on the forgoing, it is pertinent therefore, for any organization who decides to have a good and effective sales force / salesman to incorporate the motivation element such that they are drive to a point where their abilities are fully optimized.
This study seeks to survey the relationship between the salesmen’s motivation and its impact on organizational sales performance. This emphasize that motivational drive is one major characteristics that the sales manager has to come to term with, because it dictates the salesmen behaviour in order to utilize this to the overall advantage of the organization.
The Nigerian Bottling Company Plc is one organization that has a reputation or salesmen’s motivation as it has make or marred their sales performance. Achieving an enhanced sales performance can be justifiably pursued if workers / salesmen’s are well motivated particularly in the areas of on the job training, recognition, promotions and so forth. This and many other reasons culminate into the survey of salesman motivation and sales performance as it affects organizations
1.2 STATEMENT OF THE PROBLEM
If salesman is usually the arrowhead of an organization. The organization has realized that if they get the process of obtaining good salesman wrong, it might spell a doom for them. In view of this, necessary attention is given to the recruitment, selection, training, management and compensation plan of salesman then, this study find answers to the following problems;
1. To what extent is job performance influenced by perceived level of motivation in an organization?
2. What impact does motivation have on salesman and if it affects their performance on the job?
3. How can I motivate and retain the level of motivation of my sales force?
4. What effect has salesman motivation on organisation’s sales performance?
5. Does salesman motivation result in financial wastages?
1.3 OBJECTIVES OF THE STUDY
1. To investigate how effective and efficient the motivation concept has been in relation to salesman and organizational sales performance
2. To identify the motivating variables existing in the organisation
3. To analyze the level at which workers and employees are motivated at a particular period towards improved sales performance
4. To establish how an incentive program is designed to lift the performance outputs of a group of people engaged in some activities by increasing their motivation.
5. To ascertain measurable results in allowing the organisation to track performance and measures the overall success of the program
1.4 RESEARCH HYPOTHESIS
Ho: That motivation is of no importance to salesmen
Hi: That motivation is of importance to salesmen
Ho: That sales performance is not influenced by perceived level of salesmen motivation in the organisation
Hi: That sales performance is influenced by perceived by level of salesman motivation in the orgnaisation.
Ho: That salesman compensation does not facilitate easy recruitment and maintenance of competent sales force.
Hi. That salesman compensation facilitates easy recruitment and maintenance of competent sales force.
Ho: That salary plus commission is not a financial device used to motivate the sales force.
Hi: That salary plus commission is a financial device used to motivate the sales force.
1.5 SIGNIFICANCE OF THE STUDY
Sales managers of organizations may find this study very relevant in that it serves as a point of reference.
This study impact positively on how an organisation can easily determines its performance and sales volume.
This study intends to bring illumination to the dark places of sales performance as it affects an organisation through motivation
1.6 SCOPE OF THE STUDY
The areas of coverage of this research work evolves around the bottling industry in the city of Lagos. The personnel department, sales department and production department are the critical areas to be covered in the organisation of enquiry.
1.7 LIMITATION OF THE STUDY
A study of this kind naturally posed some challenges. A few of the challenges anticipated are:
1. Inability to access vital information / records for secrecy purpose
2. Shortage of time to complete project work / time limit
3. Uncooperative attitudes of some respondents
4. Lack of finance
5. Political instability e.g Boken Haken
1.8 DEFINITION OF TERMS
Motivation: Cole (1996), Motivation is the term used to described those processes, both instinctive and rational, by which people seek to satisfy the basic drives, perceived needs and personal goals which trigger human behaviour.
Nwachukwu (1988), identifies motivation as an energizing force that induces or compels and maintains behaviour. It is an internal psychological process whose presence or absence is inferred from the observed performance.
Maslow (1984), defines motivation as the way in which urges, desires, aspiration, and needs influence the choice of alternative in the behaviour of human being.
Organisation: Mitchall (1988), The contribution of two or more people working co-operatively towards the achievement of the company’s objectives.
Ajayi (2008), A system that co-ordinates people, jobs, financial resources, and managerial practices to achieve performance goals. It is an entities which process inputs by transforming them into specifies outputs of goods and services desired by the society’s
Salesmen / Salesforce: Kotler (1998), Employees in a company serving as intermediary between the company and its customers. In selling the products of an organisation. Salesmen is referred to as the “arrow head” of an organisation.
Goal: An unrealized state or condition that the organisation deems desirable.
Needs: Maslow (1984), Are the cause of actions and are classified into basic psychological and social needs.
Job Rotation: Kotler (1998), the switching of salesmen from undemanding jobs to demanding jobs
Job Enlargement: Herbert (1991), refers to adding extra tasks, it’s a horizontal extension of job.
Salaries: This is a definite salary paid to the salesman without any linkage to his sales performance.
Commission: Oladele (2009), The amount due out of what the company receive as sales from the salesman
Bonus: Oladele (2009) Extra Remuneration paid to the salesman for performing non-selling functions especially functions that are more of marketing than selling.
Sales Budget: This is the periodic estimate of the sales expected to be realized by the organisation e.g. monthly sales, weekly sales or yearly sales.
1.9 HISTORICAL BACKGROUNG OF THE CASE STUDY
The Nigerian Bottling Company Plc (NBC) was incorporated in November 1951, as a subsidiary of the A.G. Leventis Group with the franchise to bottle and sell coca-cola products in Nigeria. From a humble beginning as a family business, the company has grown to become a predominant bottler of non-alcoholic beverages in Nigeria, responsible for the manufacture and sales of over 33 different coca-cola brands. Other popular brands of beverage produced by the company are Eva water, five alive fruit juice and the newly introduced Burn energy drinks.
The company presently has 13 bottling facilities and over 80 distribution warehouses located across the country. Since production started, NBC Plc has remained the largest bottler of non-alcoholic beverages in the country in terms of sales volume, with about 1.8 billion bottles sold per year, making it the second largest market in Africa.
Today, the company is part of the Coca-Cola Hellenic Bottling Company (CCHBC), one of Coca Cola Company’s largest anchor bottlers worldwide. CCHBC operates in 28 countries, serving 540 million consumers and selling over 1.3 billion unit cases of beverage annually.
The Company recently embarked on a restructuring exercise to expand further its market share and growth profit. It invested in a new state of the art can filling and packing line at the Apapa plant. The plant has since begun to produce the “first soft drink can that is wholly packaged in Nigeria”. This is in addition to a new bottling plant in Abuja, investment in the upgrade of other manufacturing infrastructure, distribution and delivery facilities.
BOARD AND MANAGEMENT
The company is governed by a stable nine member board of directors comprising of very prominent individual who have excelled in different fields of endeavor within and outside Nigeria. The board is headed by Ambassador Olusegun Apata while the management team is led by Mr. Ronald Ebelt, an expatriate professional.
The authorized share capital of the company is N750 million made up of 1.5 billion ordinary share of 50k per share out of which 1.308 ordinary share of 50k each or N654,367 million is issued and fully paid. The share capital of the company grew from N487 million in 2005 to the present amount in the FYE 2008 through several scrip issues. Majority of the shares is held by foreign investors comprising of Moline soft drinks S.A. (55.81% and CCHBC services Ltd (10.62%), thus only 33.59% is available to the public. Share holders fund has increased from N19.31 billion in 2005 to 22.81 billion in 2009 representing a compounded annual growth rate (CAGR) of 40% after a very significant decline in 2008 total assets increased from N15billion to N48 billion in 2009. Equity contribution to total assets as at end of 2009 stood at 47.4%, a decline from 131% in 2008. the reduction in total assets in 2008 could be as a result of the restructuring exercise the company undertook in that year. This has also resulted in a decline in the level of leverage as debt / equity ratio declined from 70.43% in 2006 to 41.63% in 2009.