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Journal of Personal Selling & Sales Management: A B C A
Journal of Personal Selling & Sales Management: A B C A
Journal of Personal Selling & Sales Management: A B C A
To cite this article: Charles E. Pettijohn, Linda S. Pettijohn & Albert J. Taylor (2000) Research Note: An Exploratory Analysis of
Salesperson Perceptions of the Criteria Used in Performance Appraisals, Job Satisfaction, and Organizational Commitment, Journal of
Personal Selling & Sales Management, 20:2, 77-80
To link to this article: http://dx.doi.org/10.1080/08853134.2000.10754226
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Research Note: An Exploratory Analysis of Salesperson
Perceptions of the Criteria Used in Performance Appraisals,
Job Satisfaction, and Organizational Commitment
Charles E. Pettijohn, Linda S. Pettijohn and Albert J. Taylor
In some sales organizations the performance appraisal is treated as a bureaucratic exercise required by some "higher-up"
executive. As such, sales managers may essentially conduct appraisals in an arbitrary and perfunctory manner. This behavior
could be the result of the manager's perception that conducting performance appraisals requires considerable amounts of time
and effort, which provides few rewards, but adds considerably to the manager's level of conflict and stress. The purpose of this
research is to examine the relationships existing between one aspect of performance appraisals, salesperson perceptions of
the appropriateness of the criteria used, and two other variables, organizational commitment and job satisfaction. A survey
of retail salespeople provided the data required to evaluate the relationship between satisfaction, commitment, and the
perceived appropriateness of the criteria used. The findings indicate that salesperson satisfaction levels are significantly
correlated with the level of the perceived inappropriateness of the evaluation criteria used. However, the findings also indicate
that the perceptions of the inappropriateness of the evaluation criteria are not significantly related to the salesperson's level
of organizational commitment. Based on these findings, recommendations are made regarding the salesperson's role in the
development of the performance appraisal process.
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attributed t.o the fact that providing feedback supplies informa- Methodology
tion t.o salespeople that helps identify portions of their jobs that
are most important, and then provides additional input per- Fifty-four retailers agreed to participate in the study and
taining t.o the sales representatives' rated performance on these provide access t.o their salespeople (230 salespeople). Ques-
dimensions (Jackson, Schlecter, and Wolfe 1995). Dubinsky et tionnaires were distributed t.o full-time members of each firm's
al. (1993) argue that increases in role clarity can impact both sales staff by the firm's managers, and individual return enve-
the effort/performance expectancy and performance/reward in- lopes were provided t.o protect each salesperson's anonymity.
strumentality estimates. Thus, by reducing ambiguity perfor- Usable questionnaires were provided by 155 retail sales-
mance appraisals may positively affect the resulting levels of people, for a response rate of 67 percent. In the sample selec-
motivation exhibited by employees. In their clarifying role, per- tion process, questionnaires were distributed to full-time sales-
formance reviews are credited with reducing role ambiguity, people (thus, part-time and temporary salespeople were pur-
which in tum leads t.o higher levels of job satisfaction and posely excluded from the research) to ensure that each sales-
organizational commitment (Babakus et al. 1996). person had more of a vested interest in the appraisal process.
Teas (1981) states that a critical managerial role is provid- Each salesperson was engaged in the sale of shopping goods
ing sales personnel with performance feedback. Teas' research and performed the traditional selling tasks (i.e. approach,
results indicate that salespeople who believe that they re- presentation, close, etc.). The majority of the respondents
ceive performance feedback have higher levels of satisfaction. were female (65.2%). Almost one-third of the respondents had
Correspondingly, research has shown that role ambiguity is been employed with the retailer for a period of greater than
negatively related not only to job satisfaction, but also to three years (29.6%), 15.6 percent had been with the firm
performance (Behrman and Perreault 1984; Brown and between two and three years, 20.3 percent had been in their
Peterson 1994). Brown and Peterson (1993) state that uncer- sales positions with the firm between one and two years, and
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tainty about aspects of the job inhibits the salesperson's abil- 34.3 percent had been employed for less than one year. Most
ity t.o perform and has negative impacts on job satisfaction. of the retail store/department sizes, measured in terms of the
When managerial expectations are vague, research has re- number of sales personnel employed, were less than ten sales-
vealed that role ambiguity increases and job satisfaction de- people (45%), 30 percent had between ten and twenty sales-
creases (Behrman, Bigoness, and Perreault 1981). Dubinsky people in the store/department, and 25 percent had over twenty
and Skinner (1984) discovered that both job satisfaction and salespeople in the store/department. Further, 76.8 percent of
performance are negatively related t.o ambiguity. Based on the sample were compensated through a fixed (at least 75% of
this finding, the authors concluded that "retail salespeople compensation was fixed) compensation system, and 24.2 per-
seem t.o require information regarding their job performance." cent were compensated with a variable (less than 75% fixed)
The research question addressed in this study is based on system. These sample characteristics are similar to those
the premise that salespeople may acknowledge the use of found in prior retail studies occurring in a "shopping good"
certain t.opics in the appraisal process, but feel that these environment (e.g., Hampton, Dubinsky, and Skinner 1986).
t.opics are not the ones most appropriate for their circum- Criteria which were identified most frequently in Jackson,
stances. For example, a salesperson may realize that his/her Schlacter, and Wolfe's (1995) research provided an initial list
appraisal is based on sales volume, but feel that completion of a of evaluation criteria. This list was then further specified
course dealing with product knowledge would be a better evalu- through discussions with the retail sales managers to include
ation t.opic, because completion of the course is subject t.o his/ the following criteria: sales volume; number of orders; profit-
her control and affects his/her ability t.o work effectively. ability of sales; attainment of sales volume/quotas; appear-
It has been suggested that t.o enhance satisfaction, managers ance and manner; product knowledge; communication skills;
should consider expanding the evaluation criteria to include attitude; and initiative/aggressiveness. Salespeople were asked
those criteria which are important to the salesperson, perhaps to rate the importance of each of the criteria in their evalua-
by creating a participatory performance appraisal system. tion systems by using a seven-point Likert scale (7=most
(Behrman, Bigoness, and Perreault 1981; Brown and Peterson important and l=least important). In addition, salespeople
1994; Mowen et al. 1985; Thomas and Bretz 1994). In fact, provided ratings of the topics that they felt should be in-
employee input into the process has been described as having cluded in the appraisals (7=most important and l=least im-
an impact on the perceived fairness of the evaluation (Latham portant). A difference score was then calculated by comparing
et al. 1993; Greenberg 1986). It has been stated that the opin- the scores on the criteria identified as being included in the
ions of employees, as they pertain t.o the appraisal system, may salesperson's performance appraisal with the ratings provid-
be a greater determinant of the system's effectiveness than the ing on those topics which the salesperson believed should be
validity or reliability of the system itself (Wanguri 1995). As included in his/her performance appraisal. The differences in
stated by Thomas and Bretz (1994) without a sense of owner- scores were then totaled to provide a measure of the per-
ship, both managers and employees may view the process with ceived "appropriateness" of the evaluation criteria used.
"fear and loathing." Thus, they contend that a major concern in The job satisfaction scale developed by Wood, Chonko, and
the evaluation process is an acceptance of the system by those Hunt (1986) provided the estimate of the respondents' levels
employees being evaluated. To this end, if salespeople believe of job satisfaction. This scale consists of 14 items scored with
they are evaluated based upon inappropriate criteria, it would a seven-point Likert scale. This scale has been used previ-
follow that their commitment t.o and satisfaction with the orga- ously in a marketing context and has an established reliabil-
nization supporting this particular evaluation system would be ity level, with an alpha coefficient of .89 for the scale (Wood,
correspondingly reduced. Thus, the research question is: Chonko, and Hunt 1986). Organizational commitment was
What is the impact on salesperson job satisfaction and measured by using a four-item scale developed by Hunt,
commitment when salespeople feel they are being evalu- Chonko, and Wood (1985). This scale has been used in other
ated with criteria they perceive as inappropriate? contexts with respondents from the field of marketing and
Spring2000 79
Table 1
Correlations with the Perceived Inappropriateness of the Evaluation Criteria
Performance:
Low (n=n) -.38 * -.04
High (n=78) -.2a- -.01
z-value .67 .14
Length of Employment:
:s: 24 months (n=80) .37* -.11
> 24 months (n= 75) .24- -.02
z-value .42 .59
* =p<.01
**=p<.05
• The correlations reported under satisfaction are zero-order correlations; the correlations under commitment are partial correlations controlling for
satisfaction.
has a demonstrated reliability, with an alpha coefficient of ness of the evaluation criteria. Third, partial correlation coef-
.85. Calculated alpha coefficients for this study indicate that ficients were computed to assess the relationship between
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the scales are reliable, with a coefficient alpha of .77 for the commitment and the perceived inappropriateness of the evalu-
satisfaction scale and .82 for the commitment scale. ation criteria, while controlling for satisfaction. Further, z-
tests were conducted to determine whether the differences in
the correlations between high and low performers and be-
Results tween salespeople with less than or equal to twenty-four
Initially, correlation analyses revealed a significant nega- months of employment and those with greater than twenty-
tive relationship between job satisfaction and the perceived four months of employment could be attributed to either their
inappropriateness of the evaluation criteria (-.32; p<.01). Ad- performance levels or their tenure with the firm.
ditionally, correlation analysis revealed an insignificant rela- Table 1 indicates that the greater the perceived inappropri-
tionship between organizational commitment and the per- ateness of the evaluation criteria, the lower the level of
ceived inappropriateness of the evaluation criteria (-.04; satisfaction. The table also indicates that the differences in
p>.05). Because satisfaction has been found to influence com- correlations between satisfaction and the perceived inappro-
mitment (e.g., Babakus et al. 1996; Johnston et al. 1990), a priateness of the evaluative criteria are not significantly
partial correlation was computed between perceived inappro- (p>.05) affected by the salesperson's level of performance or
priateness of evaluation criteria and organizational commit- amount of experience. Thus, overall the results indicate that
ment, controlling for satisfaction. When controlling for satisfac- satisfaction levels are significantly influenced by the percep-
tion the partial correlation was -.09 and not significant (p >.05). tions of the inappropriateness of the evaluation criteria.
Certain variables could affect the described relationships The table also indicates that commitment levels are not
between satisfaction, commitment, and the amount of change significantly (p>.05) influenced by the salesperson's level of
desired in the evaluation criteria. For example, the performance or amount of experience. The findings indicate
salesperson's level of performance and length of employment that organizational commitment is not influenced by the per-
with the firm could mediate the relationship between satis- ceived inappropriateness of the evaluation criteria.
faction, commitment and the amount of change desired in the
evaluation criteria. One could speculate that a high performer Conclusions
may have higher levels of job satisfaction irrespective of the
amount of change desired in the criteria used in the evalua- The findings of this research indicate that appraisals can
tion process. Similarly, a positive relationship between job have a positive impact on job satisfaction when employees
satisfaction and organizational tenure could be anticipated. believe that they are being evaluated by the ''proper" criteria.
Based upon a recognition of the possible influences of these This finding makes a strong case for the implementation of
factors, additional analyses were conducted. either salesperson participation in the development of the
First, the respondents were divided into separate groups. evaluation criteria used or for managers to communicate the
One division of the sample consisted of median splits of the "logic" underlying their use of specific criteria in the evalua-
sample based on levels of performance. This division resulted tion process. The first strategy may be preferred, given the
in two groups, high performers and low performers. A second fact that allowing salesperson participation in the selection of
division was based on the respondent's length of employment evaluative criteria would not only facilitate greater agree-
with the firm. Again, the sample was divided into a median ment with the evaluation criteria, it could also reduce poten-
split of two groups, with one group being composed of sales- tial role ambiguity. This finding is consistent with previous
people with less than or equal to twenty-four months of em- research which has examined bank tellers' satisfaction with
ployment with the firm and the other consisting of those with appraisals (not job satisfaction or organizational commitment).
greater than twenty-four months of employment. Second, cor- This research found that satisfaction with the appraisal in-
relation coefficients were calculated to provide the relation- creased with teller participation (Dobbins, Cardy, and Platz-
ships between satisfaction and the perceived inappropriate- Vieno 1990). However, one should recognize that participation
80 Journal of Personal Selling & Sales Management
may require the devotion of considerable resources to the evalu- and (1993), "Antecedents and Consequencet1
ation development process, and there is no guarantee that the of Salesperson Job Satisfaction: Meta-Analysis and Asseument
eventual evaluation criteria selected will be appropriate given of Causal Effects," Journal of Marketing Research, 30 (Febru-
an individual firm's goals and marketing strategies. ary), 63-77.
Cocanougher, Benton A and John M. Ivancevich (1978), "'Bars' Per-
Based on this limitation, managers may find it preferable
formance Rating for Sales Force Personnel," Journal of Market-
to focus on "communication" of the evaluation criteria to their ing, 42 (July), 87-95.
salespeople. Such a strategy may be termed a "selling" strat- DeCarlo, Thomas E. and Thomas W. Leigh (1996), "Impact of Sales-
egy as opposed to a "telling" strategy. However, the use of this person Attraction on Sales Managers' Attributions and Feed-
strategy does little to eliminate the problem that exists when back," Journal of Marketing, 60 (April), 47-66.
a salesperson's performance is evaluated with criteria that Dobbins, Gregory H., Robert L. Cardy and Stephanie J. Platz-Vieno
are judged by the salesperson as inappropriate. (1990), "A Contingency Approach to Appraisal Satisfaction: An
Initial Investigation of the Joint Effects of Organizational Vari-
ables and Appraisal Characteristics," Journal of Management,
Limitations and Future Research 16 (September), 619-632.
Dubinsky, Alan J., Marvin A. Jolson, Ronald Michaels, Masaaki
While the findings provide insight into the use of apprais- Kotabe and Chae Un Lim (1993), "Perceptions of Motivational
als, certain limitations exist. First, the sample is based on Components: Salesmen and Saleswomen Revisited," Journal of
retail salespeople, where managers may have greater oppor- Personal Selling and Sales Management, 13 (Fall), 25-37.
tunities to evaluate their sales employees on a one-to-one and Stephen J. Skinner (1984), "The Impact of Job
Characteristics on Retail Salespeople's Reactions to Their Jobs,"
basis. Such opportunities may indicate that these managers
Journal of Retailing, 60 (Summer), 35-62.
are less likely to be required to rely on impersonal evaluation Greenberg, Jerald (1986), "Determinants of Perceived Fairneu of
tools such as call reports, courses completed, or sales reports.
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