SALES FORCE CONTROL : WHAT CAN WE LEARN FROM SINGAPORE'S EXPERIENCE?

Abstract

This is an empirical study which deals with sales force control system. A total of 100 companies from seven different major sectors of Singapore, namely, wholesales, manufacturing, property, insurance, retail, finance and service sector, were surveyed to investigate the antecedent of their sales force management approach, either a behavior-or outcome-based control approach. In this study, the author summarizes ten hypotheses (independent variables) from various control theories about the impact of environmental, company and salesperson characteristics on the design of sales force control systems. The findings revealed that some sectors with similar nature of sales operation have the same determining factors that lead to a particular control system, for example, the property sector and the insurance sector. In particular, the culture, legal and environmental factor that is unique to Singapore can shape the type of control system. This exercise does not pretend to be a comprehensive study of control systems adopted by the firms in Singapore. But it is hoped that it will be able to generate greater knowledge and understanding of the correlation between the "environment, company and salesperson characteristics" and the "design of control systems" in Singapore firms. The management of sales organization should gather from the findings in this study, the importance of understanding sector- and country-specific aspect when designing their control systems, given that Singapore is moving into a fast pace and highly competitive business environment. The successfulness in designing a sound control system is thus a stepping-stone to a rewarding business venture.