Sales force control system and sales organization effectiveness: A review based study

As the competition among firms is increasing, each firm is making effort to be more profitable than its competitors. In such a scenario, the importance of sales organization effectiveness increases. Some studies have emphasized the role of salespeople in influencing sales organization effectiveness while others have stressed the role of sales managers in improving the effectiveness of the sales organization. As, a sales force control system is an organization's process to monitor, direct, evaluate and reward salespeople (Anderson and Oliver, 1987), it is likely to have an impact on sales organization effectiveness. This paper examines the impact of sales force control systems on sales organization effectiveness. Based on the review of the studies, the findings reveal that behaviour based sales force control system has more positive effect on sales organization effectiveness as compared to outcome based sales force control system, and the effect of sales force control system on sales organization effectiveness is mediated through sales force performance and sales territory design. Based on these findings, implications and directions for future research are stated.