--- RESEARCH PROJECT (BMBR5103) HOW CAN MOTIVATON IMPACTS ON PRODUCTIVITY OF INSUARANCE SALES STAFF? STUDENT’S NAME : ĐOAN TRUNG CHAU STUDENT ID : CGS00019866 INTAKE : September 2015 ADVISOR’S NAME : DR BUI PHI HUNG (March 2017) DOAN TRUNG CHAU – CGS00019866 1 --- Advisor’s assessment. Advisor’s signature Content Format: DOAN TRUNG CHAU – CGS00019866 2 --- TABLE OF CONTENT EXECUTIVE SUMMARY .6 CHAPTER 2: LITERATURE REVIEW .3 Concept of Motivation .6 Training and coaching .7 Taking care of Managers .5 The Gap in Literature .18 CHAPTER 3: RESEARCH METHODOLOGY AND DATA COLLECTION METHOD. Validity and Reliability .26 CHAPTER 4: RESULTS, FINDINGS AND PRESENTATION OF DATA. Distribution of the Respondents by Gender.
Distribution of Insurance Sales staff by Highest Academic Qualifications. 27 DOAN TRUNG CHAU – CGS00019866 3 --- 4. Distribution of Insurance Sales staff by Age Bracket. Distribution of Sales staff by Experience in Insurance Industry.
The influence of compensation on insurance sales staff motivation at Manulife Viet Nam. The influence of benefit on insurance sales staff motivation at Manulife Viet Nam. The influence of taking care of manager on insurance sales staff motivation at Manulife Viet Nam. The influence of training on insurance sales staff motivation at Manulife 33 4.34 CHAPTER 5: DISCUSSION AND ANALYSIS THE FINDINGS.
Discussion of Key Results. Key finding one – salary on insurance sales staff motivation. Key finding 3 – taking care of manager on insurance sales staff motivation 36 5. Key finding 4 – promotion on insurance sales staff motivation.
Key finding 5 – training on insurance sales staff motivation .40 CHAPTER 6: RECOMMENDATIONS AND CONCLUSION. Summary of the Study .1 Addressing the Research Question .2 Methodology of the Study and Data Analysis .3 Limitation of the Study .52 DOAN TRUNG CHAU – CGS00019866 4 --- ABSTRACT An insurance agent’s productivity when making sales is the most important task for a successful business. A salesperson’s attitude can be the one thing that makes or breaks a sale to any client. If your insurance sales staff are not happy or are not feeling motivated, that could be difficult to hide on a phone call to a potential client—and especially face to face.
If your insurance agent doesn’t feel particularly motivated, why should the potential client feel motivated to purchase insurance from him or her? With any sales job, keeping your sales staff motivated and helping them get the most out of their time at the office is one of the most important things you can do to boost sales. Successful insurance agent professionals have to maintain a positive attitude that is the way to keep themselves motivated, especially during tough times. Keeping insurance sales staff (insurance sales staff) productive is one of the most important tasks at any insurance company because the sales staff are the key force who are going to help the company grow its business. According to research, those factors that motivate the insurance sales staff are important to achieve the business goals.
The purpose of this case study is to determine the factors affect the insurance agency motivation in the life insurance company. Delivering motivation to the insurance sales staff also help they love their work and engaging for long- term with the company. This research focuses on all of insurance sales staff at Manulife Vietnam. Total populations will use the number of samples is chosen at random from 500 insurance sales staff of Ho Chi Minh Office – Manulife Vietnam.
Questionnaires were used to collect data from sales staff. The results suggest an improvement of productivity and recommend that Manulife Vietnam should build motivated policies for insurance sales staff to ensure satisfaction with their jobs. DOAN TRUNG CHAU – CGS00019866 5 --- CHAPTER 1: INTRODUCTION When Vietnam delivered open-door policy, many insurance companies are formed and developed with the desire to bring the noble values help to the life of Vietnamese becoming better. In current, there are 18 insurance companies.
Therefore, the competition between companies is becoming fiercer than to gain market share. Insurance is a high humane profession because in addition to helping people practice the disciplined savings, it also helps that they can protect solid financial background in the case of occurring unexpected risks in life. Meanwhile, demands and expectations of customers about savings and protection increase more and more and more diversified. At any insurance company, insurance agent is one of the most important factors because the sales staff are the ones who are going to help the company grow its business.
Insurance Sales staff are the first line operators in the Insurance sector and they play a very critical role in the distribution and uptake of Insurance products. They offer the “last mile” connection with the Policyholders where personalized service come handy when closing Insurance contracts. Their role is to sell insurance; insurance is sold, not bought! Because insurance sales staff sell the intangible products, they are often rejected by their customers, who do not understand about life insurance. This leads to the closing ratio of insurance (especially new sales staff who lack of the selling skills) is not high.
Besides, the insurance agent does not have a fixed salary but receive compensation according to the number of contracts they successfully consulted, this means insurance sales staff will have no income in a month if they do not close any contracts with their customers. No income as expected, customers often refuse, sales target are not always reached… all this makes insurance sales staff do not want to stick with the job. Because of this, insurance sales staff need to be motivated, caring, sharing timely and properly. By Remez Sasson, motivation is the inner power that pushes you toward taking action and toward achievement.
Motivation is powered by desire and ambition, and DOAN TRUNG CHAU – CGS00019866 6 --- therefore, if they are absent, motivation is absent too. Sometimes, insurance sales staff might have the desire to get something done, or to achieve a certain goal, but if the desire and ambition are not strong enough, they lack the push, the initiative, and the willingness to take the necessary action. In these cases, they lack of motivation and inner drive. According to Kendra Cherry (2016) the instinct theory of motivation, all organisms are born with innate biological tendencies that help them survive.
This theory suggests that instincts drive all behaviors. Instincts are goal-directed and innate patterns of behaviors that are not the result of learning or experience. For example, infants have an inborn rooting reflex that helps them seek out a nipple and obtain nourishment while birds have an innate need to build a nest or migrate during the winter. Thus, the motivation for the insurance sales staff will play an important role to achieve the goal of increasing sales.1 Research Purpose This research aim at finding out how motivation can impact on production of sales staff (insurance sales staff) at Manulife Vietnam Company.2 Research Question: “How can motivation impacts on productivity of insurance sales sales staff at Manulife Vietnam Company?” 1.3 Context and Relevance This study is important because there are many insurance sales staff have just come to the office every day without sales and they could not find a job results in their business.
They think that they have not achieved that what they want. They feel that size their endeavor in work has not been of recognized worthy yet. When lack of motivation to work, they could not inspire others positively. That will cause the insurance sales staff boredom and do not want to come to the office.
And this will greatly affect the business results of the company. This topic will explore the factors of motivation that affect the insurance sales staff. DOAN TRUNG CHAU – CGS00019866 7 --- By highlighting these factors, Manulife Vietnam may make decisions to motivate the agency forces.4 Structure The study has six chapters: Chapter 1 will be introduction about study. Chapter 2 will aims to analyze the literature around the topics of sales staff motivation.
The next section chapter 3 will discuss the research methods that will be used to collect relevant data from the target population who are insurance sales staff at Ho Chi Minh Office. Chapter 4 will present results, findings of the primary data collected and presentation of data. Similarly, chapter 5 will analyze the data and discuss how the results relate to the literature. Finally, chapter 6 will conclude conclusion about the research, and provide recommendations for further studies.
DOAN TRUNG CHAU – CGS00019866 8 --- CHAPTER 2: LITERATURE REVIEW 2.1 Introduction There are many studies researched the motivational factors for sales staff at different organizations, which may be the motivation for the sales staff in a particular department within an organization. Overall, this studies mentioned factors such as compensation, payment package, reward system, benefit, training and development, work situation factors, leadership, relationship between sales staff and managers, and so on. Base on referring to available literatures in relation to the research question “How can motivation impact on sales staff at Manulife Vietnam Company?” The purpose of chapter two is investigate literatures in regards to determine factors affect to insurance sales staff motivation at Manulife Vietnam. And this chapter was accomplished under the following subheadings: Motivation, Concept of motivation, Conceptual Framework, Compensation, Benefit, Taking care of managers, Promotion, Training.2 Motivation Motivation refers to “the reasons underlying behavior” (Guay et al.
Paraphrasing Gredler, Broussard and Garrison (2004) broadly define motivation as “the attribute that moves us to do or not to do something” (p. Intrinsic motivation is motivation that is animated by personal enjoyment, interest, or pleasure. As Deci et al. (1999) observe, “intrinsic motivation energizes and sustains activities through the spontaneous satisfactions inherent in effective volitional action.
It is manifest in behaviors such as play, exploration, and challenge seeking that people often do for external rewards” (p. Researchers often contrast intrinsic motivation with extrinsic motivation, which is motivation governed by reinforcement contingencies. Traditionally, educators consider intrinsic motivation to be more desirable and to result in better learning outcomes than extrinsic motivation (Deci et al. Motivation involves a constellation of beliefs, perceptions, values, interests, and actions that are all closely related.
As a result, various approaches to motivation can DOAN TRUNG CHAU – CGS00019866 9 --- focus on cognitive behaviors (such as monitoring and strategy use), non-cognitive aspects (such as perceptions, beliefs, and attitudes), or both. For example, Gottfried (1990) defines academic motivation as “enjoyment of school learning characterized by a mastery orientation; curiosity; persistence; task-endogeny; and the learning of challenging, difficult, and novel tasks” (p. On the other hand, Turner (1995) considers motivation to be synonymous with cognitive engagement, which he defines as “voluntary uses of high-level self-regulated learning strategies, such as paying attention, connection, planning, and monitoring” (p. Motivation is the word derived from the word “motive” which means needs, desires, wants or drives within the individuals.
It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the people’s behavior can be -desire for recognition, success, money, job-satisfaction, team work, etc. One of the most important functions of management is to create willingness amongst the sales staff to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of sales staff in their jobs.
The process of motivation consists of three stages: A felt need or drive, A stimulus in which needs have to be aroused, When needs are satisfied, the satisfaction or accomplishment of goals. Therefore, we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan. Effectively motivating sales staff has long been one of management's most important and challenging duties. Motivation refers to the psychological processes that stimulate excitement and persistence of voluntary actions aimed at some goal.