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AN EVALUATION OF THE RECRUITMENT AND MOTIVATION OF THE SALESFORCE IN THE PAINT INDUSTRY, A COMPARATIVE STUDY OF BERGER PAINTS AND SHARON PAINTS.

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CHAPTER ONE

  • Introduction

1.1      Background of the Study

Recruiting salesforce is costly in terms of both time and money. Apart from the direct costs of advertising and interview expenses, there are the hidden costs of executive time consumed during the recruiting period, together the cost of staff used to process the various stages of the recruitment campaign.

People are the most important component of any firms’ ability to cope with the increasing demands of a complex business environment; high caliber staff will overcome difficulties and seize opportunities that their less able colleagues fail to discern. From that general statement, the conclusion that the firm should recruit the most able individuals for any given task is inescapable.

However, in order to do this, the limitations of the job within the overall management structure will have to be carefully studied since it is pointless to recruit individuals who are too highly qualified or able for the job that the organization wants to fit; they will become discontented and leave.

The marketing environment in which companies operate implies that salesforce will be needed as never before to perform a vital but changing function. Thus, according to Lidstone (1996:7), selling is like art, which mirrors the age in which it is practiced. So, where once the salesman was a jack of all trades; selling everything to everyone, he must now specialize, performing fewer tasks but more effectively. Some companies are appointing salesmen to deal with just one major customer or to look after a specialist sector or a market.  Jackson (1972) defined recruitment as securing a supply of possible candidates for jobs in an enterprise. It is the first stage in the process of staffing in an organization which continues with selection and ands with the placement of an individual (Man or Woman) in a job. Recruitment begins with information about the vacancies to be filled, and then determining the sources of the different kinds of human skills required to fill the vacancies.

Recruitment is thus, a human resource function. It is a task that is performed continuously, sometimes in a highly independent way, but no matter the situation, in collaboration with the personnel department. The most important resource which an organization or even a nation can have is its human resources (Hammid, 1983:9). Finding the men with requisite skill, knowledge and experience to fill appropriate positions in the organization is not an easy task, taking note of the aim every staffing practice should have. Haimmann, et al (1978:283) sees its purpose as to achieve optimal use of human resources through rational human resources systems and programmes. They see it as being continuous because an enterprise needs a constant supply or capable employees moving through the system from recruitment to retirement.

Staffing and other recruitment practices are thus, not performed once at ago but are a continuous exercise. The people that are recruited are the vital force of the organization, more valuable to it, in many ways, then efficient operational mention in the production process. Yet, an effective recruitment programme is not at all simple, especially if the labour requirements of the organization are diverse; for it is necessary not only to discover appropriate sources but also to compare their value that is to determine which of them that may be most satisfactory. That is why most authors, see the staffing exercise as embracing recruitment, selection and placement.

However, one may ask, how does a sales manager go about getting things done through and with other people after recruiting candidates for the sales job?

One of the ways is through the motivation of sales personnel. The motivating function is variously identified as encouraging employees towards high performance. It creates condition so that persons can get “self-administered rewards” such as satisfaction from accomplishing a challenging task.

Why should salesforce want to cooperate and contribute toward accomplishing marketing goals? How does a manage motivate his subordinates? In answering these questions, there should be the recognition of individual differences. While the individual has many things in common with his fellow men, his particular needs must be taken into account at all stages of growth and development. A need can be seen as the conscious or unconscious experiences of want (Ejiofor, 1989:166) people form an organization or join existing ones with a view of satisfying certain needs of theirs, which individually they could not and may never meet. Therefore, within organizations, individuals behave in certain ways and pursue particular courses of action in order to satisfy these needs. Since behaviour is directed toward need satisfaction, it becomes strategically important to know what people really desire from a job; hence, a worker with the ability to perform could efficiently, increase his performance, if adequately motivated.            Motivation is the will to achieve a goal in order to meet a personal need (Williams, 1977:160), while Robert Appliby sees it as the “way urges aspirations, drives, and needs to human beings direct or control or explain their behaviour.

Motivation can be either positive or negative. Positive motivation, sometimes called “anxiety-reducing motivation”, or the carrot approach”, offers something valuable to the workers. Examples include pay, praise, and possibility of becoming a permanent employee as rewards for acceptable performance.

Negative motivation, on the other hand, which is often called the “Stick approach”, uses threats of demotion if performance is unacceptable. Each type has its place in organizations, depending on the prevailing situation. For individuals, the greatest satisfaction and the strongest motivation are derived from achievement, responsibility, growth, advancement, work, and earned recognition. Prominent among the motivating factors in any organization are wages, salary, incentives and fringe benefits. Managers believe that if all these things are provided their (workers) favourable attitude and job satisfaction will be high, thereby, bringing about greater productivity.

 

Historical Background of Berger Paints Nigeria Plc.

In 1958, the company was formed in Nigeria, under the name of British Paints (W.A) Limited. The first paint factory in Nigeria was built by British Paints and started production in Ikeja in March 1962. In 1969, Berger, Jenson and Nicholson (B.J.N) merged with British Paints.

In Nigeria, both companies continued to operate as British Paints from Ikeja while B. J. N. had their paint factory in Port Harcourt. In 1972, the two companies in Nigeria were merged and the new name:

 

The company operates two paint factories at Ikeja and Port-Harcourt. Berger Paints Nigeria Limited then was an associate of Berger, Jenson and Nicholson Limited of London, U.K. now known as Jenson and Nicholson, a member of “UB INTERNATIONAL LIMITED” which is one of the largest paint manufacturing companies in the world.

Berger, Jenson and Nicholosn was then in turn a wholly owned subsidiary of Farwarke Hoechst A. G. of Frankfurt Germany, one of the largest chemical companies in the world; manufacturers with a wide range of products including pharmaceuticals, plastics, fertilizers and paint. Thus, the company is backed by vast resources of technology research and management skills.

In 1973, in accordance with the wishes of the Nigerian Government the company offered 40% of its shares to the public with an offer of 1,152,592 shares of 50 kobo each. This was rapidly taken up by Nigerian Nationals, 10% of these shares were taken up by staff of the company.

Berger paints was the first paint manufacturing company to be quoted on the Nigerian Stock Exchange.

Further, in order to meet the requirements of the Nigerian Enterprises Promotion Decree 1977, the foreign shareholders sold on the Nigerian Stock Exchange another 1,918,026 shares to the Nigerian public.

At a selling price of 80 kobo per share, the sale was over-subscribed 1.5 times. This is an indication of how the public view the value of this company. 10% of the shares again were reserved for staff and were completely taken up.

To this and, the company in 1977, totally complied with the Decree and 60% of the company’s shares were now owned by Nigerians. Berger Paints U.K. under a Technical Agreement on a continuing basis supplies Berger Nigeria Technology and Training facilities.

In 1990, Berger Paints Nigeria Plc offered rights issue of 10,800,000 ordinary shares of 50k each to existing shareholders in August 1990 on the basis of one ordinary share for every three ordinary shares held at 100k per share and the shares were oversubscribed.

 

 

The Company Organization

The running of the company is the direct responsibility of the Managing Director who has split the company organization into three major operating groups retaining marketing marine/protection and administration under his direct control.

  1. Finance

–           Company finance

–           Accounting

–           Training/Development

–           Costing

–           Credit control

–           Salaries

–           Data processing

  1. Operations:

–         Technical

–         Production

–         Maintenance

–         Quality Control Laboratory

–         Warehouse and Dispatch (Distribution)

–         Raw materials/procurement

  1. Sales

–           Sales

–           Depots

 

 

 

Historical Background of Sharon Paints and Chemical Limited.

The company was incorporated in 1984 and started operation in the same year. The establishment was through the efforts of a Youth Corper named Barrister Joseph Rapuluchukwu Nduka.

During his Youth Service year he had an inspiration to go into the paint industry. After his service year, he met his relations and pulled resources together. When the capital base was gotten, he went into the logistics; a temporary land was acquired at Gariki, Awkunanaw. Because it was at its’ embryo stage, most production was done manually by the factory hands headed by a Chemical Engineer, a graduate of IMT.

There came the problem of getting into the market. And the marketing strategy he adopted then was the personal selling strategy. When new buildings were constructed, he had an uphill task of canvassing and convincing owners of building and when convinced they supply the product. Another method of marketing strategy he adopted was the sale-on-return strategy.

Gradually, the paint gained wide acceptance into the market and later the marketing strategy changed. This was the embrayo stage.

After the embrayo, the proprietor went into legal practice and drafted his senior brother to take up the business. This was in 1986.

The management of the company or team comprises the Managing Director, the General Manager, Accountant/Personnel Manager, Marketing Manager, Production Manager, Quality Control Officer and the Research and Development Officer.

Before now, there was no management team in the company, there was no organigram in the company and the General Manager was largely efficient academically as NCE World was restructured and properly organized with the employment of the current Accountant/Personal Manager by the person of Mr. Chinedum Sam Elekwa an M. B. A. Graduate of ESUT.

It was his input that has turned the company round, brining in his managerial experience into play. It was through his effort that Management Team was constituted, budget and budgetary control were put in place and some scientific management tools were adopted.

The company has six departments:

  1. Accounts Department
  2. Personnel Department
  3. Production Department
  4. Marketing Department
  5. Research and Development Department
  6. Quality Control

All these departments are headed by graduates of various institutions. The workforce is made up of 200 staff with Field Representatives or Sales Force making up 20 in number.

 

1.2 Statement of the Problem

Recruitment of salesforce is a positive function of which the complement is selection. Recruitment finds workers and makes them available. Selection picks and chooses among them to secure those most likely to succeed on the job.

Recruitment in large organization has always been a Herculean tasks for most managers especially in the marketing oriented organizations. There are some basic factors that hinges on this exercise.

Based on the above therefore, the Statement of Problem in this regard is as follows; first and foremost, writing the job analysis, job description and job specification always constitute a bane in the recruitment exercise. Once a good job is done on the above, the exercise is most completed by the manager.

Secondly, sourcing for the right candidate, assessing application forms and evaluating and placing successful candidate also constitute a major hindrance in the proper execution of the recruitment of salesforce exercise.

In order to achieve its goals, one of the most important of which is to increase the level of sales, an organization cannot do without motivation and should be considered a veritable tool of industry’s policies after the’ recruitment- of staff so that the rate of staff turnover would not be so high.

Good motivation programmes have not always been easy to evolve in some organizations because of the forces that impede the achievement of the desired objectives. Some of these constraining forces include the problems of selecting the appropriate motivational tools, limited resources to finance such programmes, and lack of their proper implementation.

Based on the above premise, questions that arise here include: what type of motivational programmes can these organizations use to make the salesforce increase their level of sales volume, what are the needs and wants of the salesforce that can be identified for motivation? What are the motivational plans for these selesforce? And lastly, has the provision of compensation and motivational packages been satisfactory?

It is expected that the answers to the above questions will enable the researcher to understand how optimally the recruitment process and motivational tools can be used to elicit a better programme in the organizations.

 

1.3 Objectives of Study

The decision to conduct a research on the area of recruitment and motivation resulted from the ever increasing problems and concern about ways and means of achieving pre-determined goals through increased efficiency and high level of productivity on the part of the salesforce. This study is, therefore, designed to examine the following areas:

  1. To investigate the timing of the recruitment exercise and how it is undertaken by the management of the organizations under study?
  2. To ascertain to what extent the recruitment process has contributed to the effectiveness/ineffectiveness of the organizations.
  3. To examine the kind of motivational programmes adopted by Berger Paints and Sharon Paints in other to make the salesforce increase their sales volume.
  4. To determine the needs and wants of the sales-force, which when satisfied, leave them motivated workers.
  5. To investigate whether motivation has any effect on the sales volume of the salesforce of these organizations.
  6. To identify factors that impedes the effective implementation of the motivational prorammes.
  7. To examine the relationship between recruitment and the motivation of sales force in the area of staff turnover.

 

 

 

 

 

  • Research Questions

The following are the research questions:

(a) How is the recruitment exercise timing undertaken by the management of Berger paint and Sharon Paint?

(b)  To what extent has the recruitment process contributed to the effective ineffectiveness of the organizations under study?

(c)  What kind of motivational programmes are adopted by Berger Paints and Sharon Paints in other to make the salesforce increase their sale volume?

(d) What are the satisfactory needs and wants of the salesforce of the organizations understudy that make them motivated?

(e) Has motivation any effect on the sale volume of the salesforce of Berger paints and Sharon paints?

(f) What are the factors that impede the effective implementation of the motivational programmes?

(g) What is the relationship between recruitment and the motivation of salesforce in the area of staff turnover?

 

1.5 Formulation of Hypotheses

The following are the hypotheses formulated for this study. They are in both null and alternative forms.

  1. Ho: Salesforce recruitment practices have not been satisfactory in Berger Paints and Sharon Paints.

Hi: Salesforce recruitment practices have been satisfactory in Berger Paints and Sharon Paints.

  1. Ho: Training programme is not organized for the efficient performance of the salesforce in Berger Paints and Sharon Paints.

Hi: Training programme is organized for the efficient

performance of the salesforce in Berger Paints and Sharon Paints.

  1. 3. Ho: The Managements of Berger Paints and Sharon Paints have no motivational plans for the Salesforce.

Hi:  The Managements of Berger Paints and Sharon

Paints have motivational plans for the Salesforce.

 

  1. Ho: The Managements of Berger Paints and Sharon Paints do not provide satisfactory compensation and motivation packages for the Salesforce.

Hi: The Managements of Berger Paints and Sharon    Paints provide satisfactory compensation and motivation packages for the Salesforce.

 

1.6 Significance of Study

A study of this nature is of immense significance in that it makes for prudent management of personnel (sales force) requiring personnel with the appropriate qualifications, skill, and experience in the first place. Moreover, management should be able to understand ways of improving salesforce efficiency and productivity through adequate motivation of salesforce.

The significance of this study, therefore, lies in its potentiality in serving as a reference tool for both private and public organizations which might desire to eliminate all obstacles associated with recruitment and motivation. It is also expected that the study will bring to lime-light, the success or failure of these organizations under study recruitment and motivation progremmes.

This research will also be beneficial to students of marketing who intends to write on a topic of this nature. It will serve as a material of reference to students undertaking such a research.

 

1.7 Scope of the Study

This study was conducted among the Management (sales) of Berger paints and Sharon paints, the staff of both companies-made up of the salesforce.

This study is limited in scope to the areas of recruitment of salesforce and their motivation.

 

1.8 Limitations of the Study

Several constraints were met in the course of this project report and these include:

  1. FINANCE:

This was the most serious constraints of this study, and which to some extent limited the scope of this research work. This is because the researcher had learned financial resources as of the period of the research.

2.         TIME: Time was another critical constraint for the researcher. With the nature of the academic programme, this study was conducted in combination with other academic works and the researcher encountered a limited period

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