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Conceptual Background
Leadership that influences followers to perform
at the highest levels, transcending self-interest, has
been identified primarily as transformational leadership (Bass 1985; Burns 1978; Kouzes and Posner
1987; Podsakoff et al. 1990). Similar concepts are
transformative leadership (Bennis 1985),
superleadership (Manz and Sims 1989), empowerment (Conger 1989; Vogt and Murrell 1990) and
charismatic leadership (House 1977) among others.
Transformational leadership needs to be further
examined in a sales management setting (Jolson et
al, 1993), Dubinsky et al, (1995) found, in an empirical test of the Bass model, while transformational behaviors augmented the effects of transactional leadership behaviors in two salesperson work
outcomes, that transactional behaviors may have
more effect on salesperson responses. Similarly,
Russ et al. (1996) found transactional leadership
explained significant variance in salesperson performance, but transformational leadership did not.
Also using the Bass model. Comer et al. (1995) examined female sales managers' leadership styles.
Their findings suggest that transactional behaviors are more effective in sales managers. These
Management
Fall 1999
which is especially important for the highly independent salesperson. A sales manager must create
a sense of teamwork, whether that is linking the
salesperson to the organization (Lysonski and
Johnson 1983) or laying the foundation for team
selling (Cespedes 1992). Recently, many selling situations tend to require cooperation, not competition,
among salespeople (Cravens 1995; Wotruba 1996),
The second dimension is strengthening others,
which relates to the needs of the boundary spanning, possibly isolated salesperson. Boundary-spanners lack formal authority in their situations and
frequently use information and expertise to gain
pwwer (Leifer and Delbecq 1978). A salesperson uses
shared information to enhance his or her expert
status with the customer. Maximizing salesperson
discretion and autonomy can increase the
salesperson's value to his/her customer. A salesperson who is poorly informed and not permitted to
make decisions has low credibility with the customer. Wotruba (1996) indicates that empowerment
is particularly appropriate for positions involving
customer interaction.
Summary of Model
The Kouzes and Posner model permits transactional and transformational behaviors to coexist
within the five practices (Fields and Herold 1997).
Both types of leadership behaviors can occur simultaneously, reinforcing each other. A sales manager
who delivers a commission check "while riding an
elephant" links rewards (the check) with performance transactionally, while visibly celebrating (the
elephant) accomplishments transformationally
(Kouzes and Posner 1987), A salesperson conducts
transactions daily on his or her own behalf, on behalf of the customers, and on behalf of the organization. Sales positions traditionally link performance
and rewards more expressly than other positions.
Transactional behaviors are integral to sales and
saies management. When transactional behaviors
are a relatively independent concept, as in the Bass
model, their prominence in the sales culture may
overemphasize their significance. This may explain
why Dubinsky et al, (1995), using the Bass model,
found stronger relationships between salesperson
job outcomes and transactional leadership behaviors than with transformational leadership behaviors. Figure 1 is a comparison of the key dimensions
of the Kouzes and Posner model and the Bass model.
Figure 1
Leadership Modei Comparison
Kouzes and Posner (1987)
Bass (1985)
Intellectual Stimulation
-Employing superior's
intellectual capabilities
and risk taking
Intellectual Stimulation
-Vision creating
Inspirational Leadership
-Motivational meetings
-i-ioiding pep rallies
Charisma
-inspiring unquestioning
loyaity and devotion
Individualized Consideration
-Developing subordinates
-Forming one-to-one
relationships
-Delegating
Contingent Reward
-Breaking tasks into
small parts
Contingent Reward
-Unking rewards with
performance
-Setting goals
-Clarifying goais
Individualized Consideration
-Mentoring
Non-Contingent Rewards
-Management by exception
-Negative feedback
-Contingent aversion
reinforcement
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Self-Efficacy
Self-efTicacy, part of Bandura's (1977) Social
Learning Theory, refers to a person's belief in his or
her own capability to perform a specific task. A
person's self-efficacy influences a person's choice of
activities, avoiding tasks judged too difficult and
embracing activities deemed manageable. Barling
and Beattie (1983) found self-efficacy to be significantly correlated with sales foree performance. A
parallel concept to self-efficacy found in the sales
management literature is task-specific self-esteem.
Task-specific self-esteem has been shown to have
significant positive influence on performance
(Bagozzi 1978). Self-efUcacy has been found to affect several outcomes of interest to sales managers:
performance (Harrison et al. 1997; Kirkpatrick and
Locke 1996; Lee and Gillen 1989), negotiation outcomes (Brett et al. 1996), organizational commitment (Werbel et al. 1996), and burnout (Cordes and
Dougherty 1993). Self-efficacy has been identified
as a key topic for improving theoretical frameworks
in sales research (Bush and Grant 1994).
Role Clarity
Role clarity is defined as the degree to which a
salesperson is certain about how he or she is expected to do the job. In their meta-analysis of the
determinants of salesforce performance, Churchill,
Ford, Hartley and Walker (1985) found role perceptions better predictors of performance than any other
predictors. Sales supervisory behavior is related to
sales force perceptions of role clarity (Teas 1983).
Role ambiguity, the opposite of role clarity, has
been found to have a significant negative effect on
satisfaction with the work itself (Behrman and
Perreault 1984; Fry et al. 1986; Johnston,
Parasuraman and Futrell 1989; Teas 1980),
Job Satisfaction
Job satisfaction is one of the most widely studied
constructs in the sales management literature and
is well documented as a key job outcome for salespeople (Bagozzi 1978, 1980a,b; Behrmann and
Perreault 1984; Churchill, Ford and Walker 1974,
1976; Jaworski and Kohli 1991; Kohli 1985).
Transformational leadership behaviors have been
found to affect follower's job satisfaction (Podsakoff
et al. 1990), while Teas (1983) found traditional
leader behavior to be a significant predictor of sales
force job satisfaction.
Hypotheses
Challenging the Process
In Challenging the Process, the key behaviors are
initiating and fostering change and confronting and
changing the status quo. The process of innovation,
of bringing new ideas, methods, or solutions into
use, requires leadership (Kanter 1983). Change reduces a person's understanding of how to do his or
her job because old routines and procedures are no
longer available. Leaders who encourage followers
to try different ways of doing things create ambiguity (Podsakoff et al, 1990),
Hla: A salesperson's perception of a sales
manager's use of the leadership practice Challenging the Process by the sales
managers is negatively related to salesperson role clarity.
Challenging the Process also includes the specific behavior of providing followers with a challenge that they
find intrinsically motivating. EnoDuraging people to risk
failure gives people an opportunity to grow within
their jobs, Berlew (1974) describes similar opportunities
as the basis for meaning and satisfaction in work.
Hlb: A salesperson's perception of a sales
manager's use of the leadership practice Challenging the Process by the sales
managers is positively related to salesperson job satisfaction.
Figure 2
Hypothesized Modei of Perceived Transformational Leadership Practices of Saies Managers and Their
Association with the Self-Efficacy, Roie Clarity, and Job Satisfaction of Saiespeopie
Self-Efficacy
Role Clarity
Job Satisfaction
FaU 1999
Research Method
Sample and Data Collection
Survey questionnaires were mailed to 277 U.S.
electrical/ electronic control component salespeople
from a single manufacturer. A cover letter promised confidentiality and a stamped self addressed
return envelope was included. Responses were received from 168 salespeople, representing all sales
managers and most sales locations. Of those, ten
were unusable. This provided a response rate of 57
percent. The sample is predominately white, 94 per-
Measurement Scales
Leader Behavior. Leader behavior is measured
by the 30 item Leadership Practices Inventoiy (LPIObserver) developed by Kouzes and Posner (1987).
It consists of 6 behavior based items for each of the
five practices, summed for a single measure for
each practice. Internal reliabilities for the LPI Observer ranged from .81 to .92 for the five practices.
Kouzes and Posner tested their instrument extensively. Their factor analysis yielded five factors
consistent with a priori expectations (Posner and
Kouzes 1988). Also, the five factors of the LPI explained nearly 55 percent of the variance around
the subordinates' assessments of their managers'
effectiveness. Discriminant analysis indicated the
LPI could group managers into low and high performers. Test-retest reliability was at .93 or above.
Posner and Kouzes (1992) also tested the LPI
Observer's sensitivity to individual differences in
gender, functional field, culture and ethnic background.
This current study employs Kouzes and Posner's
30 items constituting the five leadership dimensions. Thus, six items comprised each leadership
dimension.
Self-Efficacy. In this study, self-efficacy is measured by a slightly modified scale developed by Kohli
(1989). The five dimensions of this scale are 1) sales
objectives, 2) technical knowledge, 3) providing information, 4) controlling expenses and 5) sales presentations. For the Sales Objectives and Sales Presentations measures, Kohli combined the three
Behnnan and Perreault statements that had the
highest factor loadings for those dimensions. Where
appropriate, those statements were disaggregated
to modify this study, creating a nine item scale,
summed for a single self-efficacy measure.
Role Clarity. Role Clarity is measured by the
MULTIRAM scale (Singh and Rhoads 1991a). This
scale specifically addresses the multidimensionality of the components of role ambiguity perceived
by boundary spanners in marketing-oriented posi-
FaU 1999
agers. This study uses the supervision and job dimensions to create an 8 item scale, summed for a
single job satisfaction measure.
Data Analysis
Multicollinearity
The initial correlation matrix (Table 1) suggests
substantial multicollinearity among the five leadership variables. Modeling the Way and Inspiring a
Shared Vision, and Inspiring a Shared Vision and
Challenging the Process have bivariate coefficients
greater than .80, which indicates high
multicollinearity (Berry and Feldman 1985; LewisBeck 1980). The Kouzes and Posner model incorporates the concept that the five practices will be interrelated. A common solution, to delete entire variables, would introduce specification error, a greater
problem than multicollinearity (Pedhazer 1991).
To reduce the impact of the multicollinearity in
the original data, the factor scoresthe composite
measure of the variables in each factor based on the
factor loadingswere used in the regression equations (Rummel 1970). The regression results are
shown in Table 2.
Regression Analysis
Multiple regression analysis was used to examine the strength of the relationship between the
independent leadership practices variables and each
of the dependent variables.
Findings
Regression of all three leadership practices on selfefficacy resulted in an R^ of .001 and none of the
individual practices were supported (H3a, H4a, H5a).
The five leadership practices aggregated accounted for 33 percent of the variance in the
10
Table 1
Intercorrelations and Reliabilities
SD
Range
Challenging
the Process
20.71
4.9
6-30
Inspiring a
Shared Vision
20.47
5.14
6-30
.83*
Enabling
Others to Act
23.23
4.86
6-30
.67*
.75*
Modeling
the Way
21.14
4.84
6-30
.79*
.84*
.75*
Encouraging
the Heart
21.51
5.69
6-30
.63*
.67*
.67*
.61*
6.
Self-Efficacy
36.85
4.07
9-45
.12
.13
.14
.15
.12
7.
Role Clarity
95.07
11.93
23-115
.37*
.46*
.47*
.56*
.40*
.52*
5.17
8-40
.62*
.67*
.71*
.67*
.65*
.32
1.
2.
3.
4.
5.
Mean
0.85
0 .87
0.86
0.87
0.92
0.81
0.92
.57*
*p<.01,n=158
Cronbach alphas are on the diagonal.
Table 2
Regression Anaiyses Using Factor Scores
Dependent
Variables
Self-Efficacy"
Role Clarit/'
Job Satisfaction^
Independent
Variables
Hypothesis
Direction
Standardized
Beta-Coeff.
(constant)
ENABLE
MODEL
HEART
(+)
.092
.067
.068
112.906
1.147
.838
.851
.000
.253
.403
.396
.050
.162
.288
.412
.207
119.926
.743
2.431
4.313
6.180
3.098
.000
.459
.016
.000
.000
.002
.393
.298
.387
.213
.408
124.238
7.711
5.839
7.593
4.178
7.996
.000
.000
.000
.000
.000
.000
(constant)
CHALLENG
VISION
ENABLE
MODEL
HEART
(constant)
CHALLENG
ViSION
ENABLE
MODEL
HEART
w
{+)
( )
(+)
(+)
(+)
(+)
(+)
(+)
(+)
(+)
(+)
Sigt
0.84
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11
Discussion
Leadership practices as a group, and most practices individually, have a significant association with
role clarity and job satisfaction of salespeople, but
no association with their self-efficacy.
Self-Efficacy
The lack of support for self-efficacy as an critical
perception was unanticipated. Bandura (1982) may
provide a theoretical explanation for this finding.
Bandura identified four antecedents to self-efficacy.
Bandura asserts that the first antecedent, enactive
attainments, authentic mastery experiences, and
the second, vicarious experiences, seeing others perform successfully, can be more important than the
third, verbal persuasion. Verbal persuasion is one
means of Encouraging the Heart. Both enactive attainments and vicarious experiences are unlikely to
be significantly impacted by leader behaviors, so that
self-efficacy may be independent of leader behavior.
Whether the problem is the construct, the measure, or respondent fatigue is unknown. The high
means and small standard deviations of the selfefficacy measure demonstrates that salespeople generally felt very competent on those dimensions of
their jobs. The self-efficacy measure used was modi-
fied and there is little precedent for any self-efficacy measure in industrial sales. Possibly, it is essential to have great confidence in your abilities as
a salesperson to select a sales career or succeed in
a sales position.
Role Clarity
The findings for Challenging the Process suggest
that those leadership behaviors have little influence on role clarity. One explanation may have to
do with the perception of that behavior. Innovation
and risk-taking behaviors may be perceived as disruptive, unfocused, or unproductive and may not
coincide with the salesperson's view of leadership
as positive, goal oriented, and uplifting. Another
explanation is that the source of challenge is not
the first-line sales manager. A corporate climate of
innovation and risk-taking may necessarily come
from higher management or the challenges may
stem from customer insistence on innovation.
The significance of the Inspiring a Shared Vision
hypothesis suggests that a sales manager who creates and inspires a clear direction for the desired
future for salespeople enables those salespeople to
identify what is required of them. If salespeople are
focused on a vision, they will waste less energy
pursuing unimportant activities.
Enabling Others to Act, which emphasizes cooperative goals, information and power sharing, leads
to role clarity. With more information and power,
salespeople feel empowered to plan their own work,
make their own decisions and consequently gain
greater control and understanding of what needs to
be done and why.
It is unsurprising that Modeling the Way, described as behaving in ways that are consistent
with stated values, and dividing long term goals
into smaller doable tasks would be important in
increasing role clarity. A sales manager practicing
Modeling the Way may model key values by treating the salesperson as a customer should be treated
(Corcoran et al. 1995).
As for Encouraging the Heart, receiving and
watching others receive positive reinforcement for
specific accomplishments increases certainty about
the actions expected. The praise, recognition, appreciation, and support reinforce role expectations.
Job Satisfaction
Job Satisfaction does appear to be related to the
manager's ability to Challenge the Process, to allow
12
Figure 3
Revised Model of Perceived Transformational Leadership Practices of Saies Managers and Their
Association with the Self-Efficacy, Roie Clarity, and Job Satisfaction of Saiespeopie
Role Clarity
Job Satisfaction
FaU 1999
people to risk failure, and innovate. Salespeople
seek challenges and often choose a sales position
because of the opportunity to innovate in an environment where risk taking is rewarded.
Inspiring a Shared Vision enables salespeople to
see the value of their own work in the future of the
firm. They also feel valued and possibly more secure when involved in the planning and discussion
of the future. Salespeople perceive their work as
more meaningful and can relate its importance to
the success of the firm.
Enabling Others to Act provides salespeople with
a sense of ownership of their work, permits significant discretion, allows involvement in planning, and
creates an atmosphere of mutual trust and dignity
and respect. This trusting and empowering environment engendered by a sales manager appears to
impact the salesperson's job satisfaction.
A sales manager practicing Modeling the Way
may demonstrate his or her values by treating the
salesperson as a customer (Corcoran et al. 1995).
Identifying salesperson needs, listening (Rich 1998),
and offering solutions encourage customer (salesperson) satisfaction. Setting goals, establishing milestones, and breaking up tasks indicate to the salesperson that the sales manager values and supports
his or her success, thus promoting job satisfaction
(Berlew 1974).
Encouraging the Heart emphasizes praise, recognition, appreciation and support. These are traditional
methods of rewarding and encouraging the sales force,
frequently utilized to keep salespeople satisfied.
Managerial Implications
Study results indicate that use of thesefivepractices may enable the sales manager to positively
impact his or her individual salespeople. To Challenge the Process, a sales manager should create a
climate of encouraging innovation and risk-taking.
To Inspire a Shared Vision, a sales manager should
communicate and involve salespeople in the vision
of the future of the firm.
To Enable Others to Act, managers should view
salespeople as partners in producing sales results.
Managers need to involve salespeople in developing
sales goals and need to continue to allow salespeople considerable discretion in achieving sales
goals. Sales managers must build a relationship
with individual salespeople based on shared information and mutual trust.
A manager who succeeds in Modeling the Way
creates and communicates a basic philosophy that
13
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Appendix A
Instruments
18
Appendix A (continued)
Instruments
Self-Efficacy
(adapted from Kohli, 1989, performance dimensions from Behrman and Perreault, 1982)
Low (1) to High (5)
Sales Objectives
Meeting sales objectives such as market share, and dollar volume
Selling high profit margin products
Identifying and selling to major accounts
Technical Knowledge
Technical knowledge pertaining to your company's products, production processes, etc.
Providing Information
Submitting timely, accurate, complete reports, records, and paperwork related to orders
Controlling Expenses
Controlling expenses by saving the company money in general where possible
Sales Presentations
Understanding the real concerns of customers
Working out solutions to customers questions and objections
Making effective sales presentations
FaU 1999
19
Appendix A (continued)
Instruments
What aspects of my job are most important to my boss
The level of professionalism my boss expects of me
Ethics
How top management expects me to handle ethical situations in my job
What I am expected to do if I find others are behaving unethically
The ethical conduct my boss expects of me
Customer-Interaction
How I am expected to interact with my customers
How much service I should provide my customers
How I should behave {with customers) while on the job
Customer-Objection
How I am expected to handle my customers' objections
How I am expected to handle unusual problems and situations
How I am expected to deal with customers' criticism
Supervision Dimension
sales manager really tries to get our ideas about things
sales manager has always been fair in dealings with me
sales manager gives us credit and praise for work well done
sales manager lives up to his/her promises
Job Dimension
My work is satisfying
My job is exciting
My work gives a sense of accomplishment
I'm really doing something worthwhile in my job