TEACHING REEVALUATION OF SALESPERSONS THROUGH THE USE OF A SIMULATION GAME Developments in Business Simulation & Experiential Exercises, Volume 13, 1986 66 TEACHING REEVALUATION OF SALESPERSONS THROUGH THE USE OF A SIMULATION GAME Gordon Gray, Arthur Andersen, Oklahoma City James W. Gentry, Oklahoma State University L. Lee Manzer, Oklahoma State University ABSTRACT Gaming approaches to the teaching of salesperson evaluation are reviewed briefly, and a need for a more specific tool is discussed. SPREE (Sales Person Review and Evaluation Exercise), a new game developed to meet this need, is discussed. The game allows the player to access up to 28 items for each salesperson in the areas of personal data, territory conditions, expense records, margins, effort, and sales history. The students rate the salesperson on the expenses, behavior, and performance dimensions, and then make recommendations for further steps such as termination or additional training. Feedback is provided to the students in the form of comparisons of their ratings with those of a board of “experts.” INTRODUCTION Sales management has become more sophisticated as better planning and evaluation tools have been developed and as technology increases have made it easier to monitor sales inputs and outcomes. To aid the process of sales management, commercial software has become relatively common. A list [8] of some of that software is shown in Figure 1. Obviously there are a number of sales functions covered by these packages. An instructor could spend a small fortune on packages if s/he wanted to introduce students to state-of-the-art software in all areas of sales management. There are at least two other approaches to introducing students to sales management software. One would be to use a relatively complex simulation game that deals with a variety of topics. Boone, Kurtz and Braden [1] developed an early sales management game which emphasized sales territory and budget allocation decisions. A more recent game by Day and Dalrymple [3] offers a far broader scope, covering personnel selection, personnel transfers, retraining, severance, territory assignment and sales forecasting decisions. Both games provide the opportunity to introduce students to an integrated view of sales management, but it would appear that the latter game offers a broader perspective. Developments in Business Simulation & Experiential Exercises, Volume 13, 1986 67 An alternative approach would be to emphasize specific topics as instructors may find the broad scope games to be too general and the commercial packages too expensive. Therefore, instructors may resort to more specific experimental exercises or games to deal with one particular sales management task. One such sub-area is that of salesperson evaluation, which is covered in nearly all sales management texts. A typical coverage (for example, see [4]) discusses the dimensions to be evaluated, alternative evaluation procedures, and problems associated with the process. An experimental exercise would seem to be an excellent way of introducing the student to the complexity of the evaluation process and to the nature of the problems that can arise if the process is not handled systematically. Bowie [21 discussed a sales person evaluation exercise in which the following information was presented in a matrix format for each of six salespersons for five products: sales, percent change from last year’s sales, territory potential, and the salesperson’s share of the potential market in the territory. This exercise does introduce students to the scope of the evaluation problem. However, the approach was criticized [5] for not encouraging sufficient rigor in the evaluation process. First, it emphasized sales results solely. Pickett [11] recently proposed and tested a model of sales performance with three dimensions: behaviors (effort), results, and profitability (expenses). Further, he attempted to distinguish the organizational sales performance from that of the individual salesperson. In light of this and most other recent research in the sales management area, the emphasis on sales results alone seems unjustified. Second, the relatively superficial nature of the tasks in the Bowie [2] exercise lends itself to common decision making errors such as the fundamental attribution error (in which sales managers blame the individual rather than the situation for the negative nature of the results) and the failure to note possible regression effects (where a change toward the mean sales level really should have been anticipated given an extreme performance the previous year). The discussion of the matrix approach used in the exercise did not indicate any recognition of the need to be aware of such biases in order to avoid them to the extent possible. This paper discusses a greatly expanded version of the approach advocated by Bowie [41. A simulation game, the Sales Person Review and Evaluation Exercise (SPREE) was developed to allow the student to carry out the following activities: 1) Be exposed to the large number of items that should be considered in the systematic evaluation of a salesperson’s performance; 2) Evaluate the salesperson on the effort, expenses, and results dimensions and have the option of recommending further steps such as termination or additional training; 3) Receive feedback as to the quality of those ratings (based upon a comparison with the “true” ratings supplied by a board of “experts). The Sales Person Review and Evaluation Exercise (SPREE) The student is told s/he is a sales manager for a high-tech manufacturing firm whose primary product is a small business computer. The average order is about $2000. The student is asked to evaluate salespersons one at a time; the number evaluated per sitting is up to the student. The game runs on the IBM PC. First the student is presented with basic data on the salesperson, as shown in Figure 2. This information is very similar in scope to that presented in the Bowie [2] exercise. The student is then presented with a menu of additional information available. The 28 items are listed in Figure 3. These items constitute a fairly comprehensive list of the factors which influence the evaluative dimensions. The student is asked to select the number corresponding to the item in which s/he is interested. In most cases, a numeric response is given both for this salesperson and for the average salesperson, but some of the responses are non- numeric. For example, one response to item #25 (training) is “this person attends seminars, training sessions, and demonstrations to gain information for improving performance.” The student may access as many, or as few, of the 28 items as they desire. The amount of time required to access all 28 items is quite excessive; the intent is to stimulate the need to accumulate information from various sources, some of which might be relatively Developments in Business Simulation & Experiential Exercises, Volume 13, 1986 68 inaccessible. Some of the items (many of the personal characteristics, for example) are largely irrelevant. once the student feels that s/he has obtained sufficient information, s/he evaluates the salesperson by ranking each person on the three categories: expenses, behavior, and results. The scale used is as follows: Next the student is given the option of recommending up to two of the steps listed below: 1) Dismissal 2) Careful monitoring of performance 3) Additional training 4) Cited for poor behavior 5) Drug/alcohol counseling 6) Marital counseling 7) Financial counseling The computer then presents a comparison of the student’s evaluations and recommendations with those from the computer. Actually, the computer ratings represent the average ratings from the six people (experts”) involved in the game development. Given the variance in the experts’” ratings, it is difficult for the instructor to place too much weight on the magnitude of the discrepancies between the students’ ratings and the “experts’” ratings. Last, the student receives a short description of the salesperson. For example, one description is consistently poor performer, but works hard--could need training.” Before evaluating the next salesperson, the student has the option to re-investigate the one just evaluated further in order to see any items which should have been investigated initially but were possibly overlooked. When the student is through with that salesperson, s/he has the option of evaluating another or ending the game. While there are only 17 unique salesperson profiles available in the current version of the game, the student never sees exactly the same figures as all numbers are randomly adjusted slightly. Thus, while it may be possible to get the same salesperson twice in a row, the variation in sales levels, order size, etc. are sufficient to give the illusion of evaluating a different person. Once the option to end the game is chosen, an overall summary is printed giving the mean student evaluation and the mean computer evaluations for the three dimensions, and then the mean absolute deviations for the three dimensions. The number of salespersons evaluated and a summary of the items investigated are also printed. A comparison of the student’s and the computer’s mean ratings will indicate if there is a consistent bias to overrate or underrate the salespersons. The mean absolute deviations provide a better measure of the student’s accuracy. Again, this ‘accuracy” measure is somewhat questionable due to the high variance in the “expert” ratings of the salespersons. The intent of the game is one of exposure: the student is exposed to a large number of dimensions that are related to salesperson performance and to possible problem areas occurring in the evaluation process. The intent is not one of evaluating the student’s prowess in this area of sales management. Accordingly, we encourage the instructor to disregard for the most part the computer feedback on the student’s ratings. Instead, we encourage the instructor to reward effort (the number of salespersons evaluated, the number of relevant variables used to evaluate, etc.) or, more strongly, to have the student write a game summary which will be graded. In the game summary, the student should be able to distinguish those items which are more important (sales history, territory economic conditions, level of competition, time worked, calls made, sales level, etc.) from those of much less importance (age, education, income, etc.). Also, they should acknowledge that the behavior and results ratings seem to be more straightforward than the expense ratings. For example, while it is easy to rate high expense levels negatively, it is also logical to rate low expense levels poorly if the sales level is low. The student should also be asked to make recommendations as to how the game could be improved operationally and/or substantively. The substantive recommendations, in particular, give the instructor a good chance to evaluate the student’s ability to translate the material learned in the class and from the text into an applied setting. Hopefully, they can point out types of information that are not available and could well be of use. CONCLUSIONS This paper has discussed SPREE, a new simulation game designed to introduce students to the complexity of salesperson evaluation. The game takes advantage of many of the features of the micro computer. It is interactive, allowing the student to have the one- on-one experience that they have become used to through video games. Moreover, it provides the student with feedback as to how s/he is doing and allows the student to look back and see what was missed. We encourage you to play the game yourself in the ABSEL game room where copies and operating instructions for SPREE are available. REFERENCES [1] Boone, Louis E., David L. Kurtz, and Joseph L. Braden (1978), The Sales Management Game., Tulsa: Petroleum Publishing Co., 2nd edition. [2] Bowie, James G. (1984), “Sales/Marketing Management Teaching Tool,” Journal of Marketing Education, Fall, 21-24. [3] Day, Ralph L. and Douglas J. Dalrymple (1985), Sales Management Simulation, New York: John Wiley & Sons. [4] Futrell, Charles (1981), Sales Management: Behavior, Practice and Cases, Hinsdale, IL: The Dryden Press. [5] Gentry, James W., John C. Mowen, and L. Lee Manzer (1985), “The Need for a More Systematic Sales Management Evaluation Exercise,’ unpublished Working Paper, College of Business Administration, Oklahoma State University. [6] Glueck, William F. (1982), Personnel, Plano, TX: Business Publications, Inc. [7] Kahneman, Daniel and Amos Tversky (1973), “On the Psychology of Prediction,’ Psychological Review, 80 237-251. Developments in Business Simulation & Experiential Exercises, Volume 13, 1986 69 [8] Marketing News (19S5), “Software for Marketing & Marketing Research,” March 15, 39-52. [9] Mowen, John C., Stephen W. Brown, and Donald W. Jackson, Jr. (1981), “Cognitive Biases in Sales Management Evaluations,” Journal of Personal Selling and Sales Management, 1 (Fall/Winter), 8 3-88. [10] Mowen, John C., Janet E. Keith, Stephen W. Brown and Donald W. Jackson, Jr. (1985), “Utilize Effort and Task Difficulty Information in Evaluating Salespeople,” Journal of Marketing Research, 22 (May), 185-191. [11] Pickett, Gregory M. (1985), “Towards a Theory of Salesperson Performance: An Empirical Investigation of Its Dimensionality and Measurements” Unpublished Doctoral Dissertation, Oklahoma State University. [12] Ryans, Adrian B. and Charles B. Weinberg (1979), “Territory Sales Response," Journal of Marketing Research, 16, 453-465. Table of Contents Volume 13, 1986 How to Use Microcomputers in Human Resource Management Courses What's My Line? An Exercise in Job Analysis, Description and Classification Relationships Between Team Cohesion Dimensions and Business Game Performance Four Factors Affecting Group Performance in Business Policy Simulations Enhancing Strategic Management Goal-Setting Skills in the Business Policy Course Using a Business Simulation in the Principles of Management Course - Learning Outcomes and Perceptions Personal Computers: Drexel's Experience Using Psychological Type to Enhance Negotiation Skills The Effects of Conflict Handling Styles on Negotiation Behavior: An Analysis of an Experiential Exercise An Experiential Test of Bargaining Decisions and Representation Self-Grading of Examination by Students, A Viable Alternative to Traditional Procedures Perceived Instructor Enthusiasm and Student Achievement An Experiential Approach to Teaching Subordinate-Oriented Communication Assessing the Effects of a Computerized Study Guide in Macroeconomic Principles: A Statistical Analysis A Sales Management Simulation for the PC an Integrative Tool for the Sales Management Course Teaching Re-evaluation of Salespersons Through the Use of a Simulation Game A Test of Student Performance and Attitudes and Performance Under Varying Game Conditions Developing and Testing Airways: A Marketing Simulation Experiential Learning Revisited: Some Thoughts on Designing More Adaptive Management Education Programs Developing the Competencies of Creativity and Accurate Self-Assessment Self-View and Norms: Some Longitudinal Laboratory Results Strategic Planning with an Experiential Case The ABSEL Research Consortium: Preliminary Steps and Position Papers An Analysis of ABSEL Conference papers (1974-1985) The Creation and Operation of a Data-base System for ABSEL Research Funding for a Research Consortium on Simulation and Experiential Learning Simulation - Indoctrination or Learning The Dilemma In Evaluating Classroom Innovations Personality Variables on Group Cohesion, Team Participation and Total Learning Justifications for and Problems in Developing and Using Computerized Experiential Activities Management Competency Models and the Life-Long Learning Project: What Role for ABSEL External Validity of Business Games Restructuring the University - An Experiential Exercise The Surrogate Class Exercise Images of Effectiveness: A Classroom Exercise The Algebran Industry: A Tutorial Framework Another Chance: A Multi-Leveled, Macro Business Game for Micro-Computers A Water Quality Management Simulation Game Acquisitions? Divestitures? Progress Report on a Conglomerate Game Enterprise: A Multi-Purpose Management Development Simulation Marketer: A Microcomputer Simulation in a High Tech Industry A Pedagogical Analysis of Alternative Tax Elections for Exploration Costs in the Mining Industry Using of Multiple Microcomputers Application Programs to Teach Fundamental Business Concepts and Practices Demonstrating the Role of Simulation in Strategic Operations Planning: A Case Study in Bank Check Processing Location Analysis The Subjective Side of the Decision Support System: A Pitfall for the Panacea A Group-Based Procedure for Revealing Judgmental Heuristics and Biases An Experiential Exercise in Bayesian Decision-Making Values for Selected Parameters in Physical Distribution Simulation and Games Computerized Business Management Simulations for Tyros The Management Decision Laboratory at New York University An Example: The Use of Management Games on Microcomputers by Computer Novices Enhancing Mainframe Simulation Via Microcomputers: Designing Decision Support Systems Integrating Personal Computers Into a Course as a Decision Support Tool A Decision Support System for Capital Funds Forecasting Performance and Attitudinal Affects of a Decision Support Package in a Business Game Using the Real World: Interviews with Woman Mangers The Cooperatively-Authored Student Handbook International Buying: An Experiential Exercise The Research/Teaching Interface: Turning a Pretest into an Experiential Exercise Building Microcomputer Business Simulations Simulation with Discrete and Continuous Mathematical Modeling An Interpolation Approach to Developing mathematical Functions for Business Simulations The Design of Simulation Models Using Thought Organizers The Assessment Center as a Teaching/Learning Device An Approach to Meeting the AACSB Guidelines for Introducing Skills and Personal Characteristics (SACs) Using an Interclass Simulating and Role-Playing Pedagogy Experiential Learning about the World of Work: A Program for Primary and Secondary School Educators Assessment of Relevant Personal Characteristics of Potential Entrepreneurs