Abstract
This study has been conducted in Mexico with which discusses the impact of sales territory design and compensation to salespeople as predictors of performance of sales unit effectiveness. The factors affecting performance of sales force through balanced supervisory control, cognitive measures and coordination pattern of task performance in the team have been examined and managerial implications derived for optimising the performance of the sales force in this paper. The findings of the study show that the balance between the territory designing and incentive pays affect the overall performance of sales tasks performed by the field sales teams. Sales territory design also largely influences the level of performance both directly and indirectly through its relationship with the salespeople's behavioural performance. Discussions in this paper also argue that the behaviour control is a consistent predictor of the salespeople's performance and effectiveness of the sales units. This indicates the importance of proactive monitoring, directing and evaluating salespeople by the managers.
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