Some of the largest sales organizations in the U.S. are experimenting with ranki

Question

Some of the largest sales organizations in the U.S. are experimenting with ranking their sales reps based on performance metrics. Sales professionals are split on whether or not ranking is appropriate. At GE, for example, the top 20% get significant bonuses; the bottom 10% typically get fired.

Some say this is heartless and cruel and only serves to destroy teamwork. Others feel that it is a strong motivator and that not doing so is a management failure and a form of false kindness.

As a sales manager, would you rank your sales reps? Why or why not?

Explanation / Answer

Yes, as a sales manager I would rank my sales representatives based on their performance because I believe that this will motivate employees and even the poor performers will strive to do better because they will be aware that there is no scope for complacency and non performance. Instead this will make the team and the organization competitive as a whole and make them better in this context of competitive business.

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