The sales managers who support the Baumol's Sales Maximization Model believe that all salespeople are born with a silver spoon in their mouth. They have no personal struggle to strive for higher personal achievement, and they believe that all others intuitively share these principles. Those who oppose this view feel that managers have an unusual need to see themselves as superior to their sales employees. Because of this need, these same managers may project an internal message of superiority, which can stifle personal creativity. To counteract these effects, proponents of the maximization theory suggest that sales managers can come up with creative ways to make their subordinates' performance better, even if they do not consciously use Baumol's principle at all.
These two models are not mutually exclusive, however. Many firms have adopted both models successfully, and some companies have rejected both altogether. The most common argument against Baumol's Sales Maximization model is that it is too "inclined" to focus on personal effort as the basis for individual progress. Proponents of the Baucom system make a number of arguments against this view.
For example, many experts argue that managers often do not appreciate the idea that salespeople should be given credit for their own sales success. In addition, many managers may put forth an image of unreliability and instability, which can make it more difficult for the salespeople to establish themselves as successful salespeople. Proponents counter that these fears are unfounded and that many managers have raised the matter of reliability and stability to ensure that their subordinates are given credit where credit is due, including in their compensation packages. They also point out that many corporations have adopted compensation packages that give executives the option of receiving high bonuses and stock options.
Proponents of baumol's sales maximization model argue that the model provides an excellent template for building strong sales teams. The concept of relying on "human potential" or the ability to "play to win" within a sales team is one that has been adopted by many organizations over time. The idea is that the best salespeople are those who are willing to "play the game," regardless of the circumstances. The model thus states that the key to success is having a salesperson who is willing to "swing the club" when necessary, regardless of the environment.
Critics of the baumol's sales maximization model point out that some managers are resistant to change. As an alternative, these managers choose to follow the advice of "old-timers" who may not really care about being "old school," but whose resumes reflect the types of attributes that make them attractive to other hiring managers. These other hiring managers may offer an opportunity for the manager to move up through the ranks. Many organizations that use these types of models often find that their leaders are dissatisfied with the results, and move back towards their original perspectives on salespeople and leadership.
While many salespeople do enjoy the perks of corporate life, many others are often unhappy about the structure or management structures that have brought them to their current status. They may view their current manager(s) as not having the skills or personality that is required to help them achieve their career goals. By using models such as Baumol's sales maximization model, it is possible to provide salespeople with an insight into what they need to do to achieve their own personal career goals. This type of sales training may prove to be more effective than simply handing out raises and bonuses. By providing salespeople with accurate tips about how to improve on the things that will help them hit the major milestones in their careers, the models are often able to provide long-term value.
Read about the Baumol’s Sales Maximisation Model and its both aspects on thekeepitsimple, and the topics which are related to the business, management and economics.
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