The Effect of Motivators on the Performance of Real Estate Agents - Assignment Example

The Effect of Motivators on the Performance of Real Estate Agents Introduction: Selected Topic Countries such as France, which attract a high volume of extra- and intra-regional tourists and have a wide array of geographic differentials, from seaside resorts to ski resorts, from cosmopolitan urban centres to idyllic rural ones, possess the potential for an active and vibrant real estate market. Such a supposition is supported by empirical evidence which identifies France as one of the most important real estate markets in Europe, and a primary attraction for property investors (`France continues,’ 2006). The implication here is that the real estate market in France is not only vibrant but that it has enormous growth potentials. Given the above stated observations, one may surmise that real estate agencies in France have attractive profit-making potentials, insofar as they operate in a market which attracts both domestic and international buyers and investors. While that may be the case, the fact remains that the potential of any real estate agency can only be realised through the efforts of its sales force and its agents. As Davis (2002) explains, the performance of individual real estate agencies is inextricably dependant upon the characteristics, activities and qualities of its sales force with it, therefore, being incumbent upon real estate agency managers to deploy such motivation techniques and strategies as would incite performance (Davis, 2002). As may be deduced from the above, the dissertation proposes to undertake an analysis of the French real estate market and the performance of a select number of real estate agencies therein, with specific focus on the extent to which the deployment of motivation techniques may positively impact agency performance. Importance of Study The importance f the study derives from the fact that it will examine the efficacy of implementing motivation theory as a means of inciting higher sales figures and improving the performance of sales teams. Furthermore, while the study shall specifically focus on the mentioned in relation to the French real estate market, the theoretical models that shall be discussed and the recommendation that will be proposed, are applicable to the international real estate market and to those business firms whose performance is inextricably linked to the activities of its sales force. In other words, even though the study is of immediate importance to the French real estate agencies, its value extends beyond that to embrace real estate agency performance per se, irrespective of geographic location, and sales-based organisations and firms. Literature Review Numerous management researchers and scholars have emphasised the importance of motivation strategies as a tool for the maximisation of employee output and productivity (Igalens and Roussel, 1999; .Reinharth and Wahba, 1975; Kim, 1984). Few, if any, have disputed the fact that management’s adoption of employee-targeted motivation strategies, especially as pertains to sales personnel, improves both individual employee output and overall firm performance but scholars, have, nevertheless, debated the most effective motivation strategies (Kallenberg, 2000; Wallace, 1995). Silvester et al. (2003) maintain that empirical evidence suggests that the adoption of any of the existent motivation theories and the integration of their incentive guidelines into an organisation’s management paradigm positively contributes to organisational performance and maximises employee output. To fortify their argument, the researchers undertake a comparative study of the effect of the implementation of an array of motivation strategies and theories on employee output and performance, maintaining that the study and existent empirical evidence indicates a positive effect, irrespective of the motivation strategies and theories selected (Silvester et al., 2003). Needless to say, Silvester et al.’s (2003) argument is extremely controversial. There is no doubt that application of motivation theory can positively enhance employee output and, as pertains to real estate agency sales personnel, maximise sales. However, as Klein (1990) contends, if a firm is to accrue the optimal benefits promised by motivation theorists, it need carefully select the motivation paradigm that is most ideally suited to its unique organisational and employee characteristics. Motivation strategies, and the theories which inform them, cannot be randomly selected but must be chosen in accordance with a consideration of both firm and employee characteristics on the one hand, and implementation feasibility on the other (Klein, 1990). While the above assertion directly disputes Silvester et al.’s (2003) argument, one has to concede to its inherent logic and acknowledge that it is consistent with management practices and principles. Consequently, and as Davis (2002) explicates, prior to the selection of that set of motivation strategies which would incite its sales force towards better performance, it is incumbent upon real estate agency managers to articulate the firm’s unique characteristics, the observable strengths and weaknesses of its existing sales force and precisely outline its sales’ objectives (Davis, 2002). A study commissioned by the Journal of Training and Development (1984), indirectly upholds the above articulated contention. As noted in the study, there exists a wide array of motivators, whether psychological, social or material. Management’s determination of the motivator mix which would best enhance employee performance must proceed following an identification o those motivators that have already been implemented and n articulation of their failure to produce the required effect. Once having done so, management needs to analyse a firm’s objectives, the social, psychological and material ambitions and requirements of its sales force and then design a motivator mix on the basis of the study’s findings. In other words, and even though the need for financial security, possibly economic comfort and wealth, often functions as a powerful motivator for sales personnel, it is hardy sufficient in, and by itself. In order to incite sales force to its optimal performance, other motivators such as the “need for status,” the “need for respect,” the “need for control,” the “need for stimulation,” the “need for honesty,” and the “need for routine,” have to be considered (`What motivates,’ 1984: p. 11). A real estate agency manager should, in other words, critically evaluate the variant motivators and select those which best address the needs of the agency’s sales force. Largely concurring with the above, Huselid (1995) asserts that the selection and subsequent implementation of motivators designed to enhance sales performance, should be the primary objective of an agency, or organisation’s human resource department. It is incumbent upon HR executive to accurately gauge the characteristics of its sales force, comprehend the areas of strength and weakness and then design and implement a motivational management strategies as would incite higher output (Huselid, 1995). In other words and as also affirmed by Igalens and Roussel (1995), the design of a well-articulated and effective motivational package is the responsibility of the HR department and must proceed from an in-depth knowledge of the competencies and characteristics of the agency’s sales force. The fact that managers can positively use motivation to increase sales and maximise employee output is, according to Reinharth and Wahba (1975), inarguable. However, precisely which motivators or motivator-mix can positively impact the performance of real estate agents is, in the final analysis, dependant upon the characteristics of both the firm and its sales force. Research Questions and Hypothesis The dissertation has elected to test the following hypothesis: The performance of real estate sales personal is positively influenced by the managerial decision to adopt both financial and non-financial motivation techniques which target the individual members of the sales force and incite them towards the attainment of higher and more challenging sales objectives. As determined by the above articulated hypothesis, the research questions are: 1. How do managers of real estate agencies motivate their agents towards higher sales figures? 2. What motivation theories are best suited for implementation in real estate agencies? 3. Does empirical evidence supports the theoretical contention that management’s adoption of motivation strategies enhances sales and improves overall agency performance? Methodology Of the various epistemic stances and methodological approaches that could have been adopted, the research sought to embrace those which were the more pragmatic, imposed objectivity upon the researcher and, at the same time, allowed the research to escape the conceptual limitations which could have been imposed upon it by the highly specified nature of the selected topic. Within the parameters of the articulated objectives, data collection will be both desk-based and ethnographic and a mixed methodological approach was selected. As pertains to the selection of the data collection tools which will inform the research, the primary criterion are practicality and the fulfillment of the articulated objectives. While its importance is often overlooked, thereby leading the researcher to stray from his/her original guidelines, Creswell (2003) emphasizes the importance of a pragmatic selection of data collection methods. On the one hand, researchers need respect the value of secondary data on their selected topic, both to avoid the repetition of redundant findings and to benefit from earlier findings. On the other hand, the researcher must not solely rely on secondary information as doing so will invariably reduce the academic value of the study. Therefore, it is incumbent upon the researcher to adopt, concomitant with desk-research, an ethnographic approach to data collection (Creswell 2003). The selected primary data collection strategies are observation, structured interviews and questionnaires. Through the observation of the performance of real estate agents in two firms and the motivation strategies, or lack thereof, employed, the research shall collect such data as would help determine the effect of motivation on sales. In addition to that, structured interviews with real estate agency managers will function to furnish the data regarding whether or not motivation strategies are deployed and if so, what type. The questionnaires that shall be distributed amongst real estate sales personnel shall provide insight into the degree to which motivation techniques influence performance. Even though the selected primary data collection tools are integral to the research, the possibility of systemic bias among respondents cannot be eliminated. Validation, therefore, is necessary and shall proceed by comparing the information collected against published literature. As regards the research methodology and, as earlier stated, the research shall adopt a mixed methodology approach. As argued by Creswell (2003), a mixed model is often the most suitable approach for two reasons. In the first place, the adoption of a mixed methodological approach enables a researcher to escape the conceptual confines which a precisely articulated research concern may impose upon the study. It does so by encouraging the adoption of variant research strategies and theoretical perspectives, thereby expanding the parameters of the study, while simultaneously shedding greater understanding upon the core concern. The adoption of a mixed model approach shall also allow the researcher to analyze the efficacy of motivation techniques and their impact upon firm performance from several theoretical perspectives. The theories that have been selected primarily draw from within the variant sub-theories of motivation and organisational management. As explicated in the above, the research has not ignored any specific methodological approach. Instead, given the parameters of the researcher’s concerns, an amalgamated methodological approach has been deemed the most appropriate. Conclusion In the final analysis and without rushing towards any conclusions regarding the validity of the stated hypothesis, the available literature seems to confirm the existence of a correlation between motivators and employee, especially sales personal, performance and output. Bibliography Creswell, J.W. 2003, Research Design: Qualitative, Quantitative and Mixed Method Approaches, Sage Publications, California. Davis, D. 2002. How to Become a Power Agent in Real Estate. McGraw-Hill, London. `France continues to attract property investors,’ 2006. Assetz Property News Service. [Online]. Available from: http://news.assetz.co.uk/articles/2482.html [4 Feb. 2006]. Huselid, M.A., 1995, `The impact of human resource management practices on turnover, productivity, and corporate financial performance,’ The Academy of Management Journal, [Online], vol. 38, no. 3. Available from: Jstor. [4 Feb. 2006] Igalens, J. and P. Roussel, 1999, `A study of the relationships between compensation package, work motivation and job satisfaction,’ Journal of Organisational Behaviour, [Online], vol. 20, no. 7. Available from: Jstor. [4 Feb. 2006] Kallenberg, A.L., 2000, `Nonstandard employment relations: Part-time, temporary and contract work,’ Annual Review of Sociology, [Online], vol. 26. Available from: Jstor. [4 Feb. 2006]. Kim, J.S., 1984. `Effect of behavior plus outcome goal setting and feedback on employee satisfaction and performance,’ The Academy of Management Journal, [Online], vol. 27, no. 1. Available from: Jstor [4 Feb. 2006]. Klein, J.I., 1990, `Feasibility theory: A resource-munificence model of work motivation and behavior,’ The Academy of Management Review [Online], vol. 15, no. 4. Available from: Jstor. [4 Feb. 2006] Reinharth, L. and M.A. Wahba, 1975, `Expectancy theory as a predicator of work motivation, effort expenditure, and job performance,’ The Academy of Management Journal, [Online], vol. 18, no. 3. Available from: Jstor. [4 Feb. 2006]. Silvester, J. et al., 2003, `Comparing two attributional models of job performance on retail sales: A field study,’ Journal of Occupational and Organisational Psychology [Online], vol. 76. Available from: EBSCOhost. [4 Feb. 2006]. Wallace, J.E., 1995, `Organisational and professional commitment in professional and nonprofessional organizations,’ Administrative Science Quarterly, [Online], vol. 40, no. 2. Available from: Jstor [4 Feb. 2006]. `What motivates top sales performers?,’ 1984, Journal of Training and Development, [Online], vol. 38, no. 6. Available from: EBSCOhost. [4 Feb. 2006]. Read More