Abstract
Salesforce motivation is one of the most important factors affecting the success of sales organizations. It has been found out that among various organizational factors, compensation plan used by the company has an important bearing on salesforce motivation. Various studies have analyzed the impact of compensation plans on salesforce motivation but the findings are inconsistent. As salesforce motivation is important for organizations in the competitive environment, it becomes important to clarify the inconsistencies in findings. The objective of this study is two-fold. First, it provides a review of studies analyzing the impact of compensation plans on salesforce motivation. Second, it suggests ways for increasing salesforce motivation. The review of studies shows the superiority of salary based compensation plans in influencing intrinsic motivation positively. Implications and future research directions are also suggested.
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