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Sticking together under pressure : the risk-sharing approach and trust-building in sales management

Author

Listed:
  • Madeleine Besson

    (CEMANTIC - Centre d'Études et de recherches en Management et TIC - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Hélène Löning

    (HEC Paris - Ecole des Hautes Etudes Commerciales)

  • C. Mendoza

    (ESCP-EAP - ESCP-EAP - Ecole Supérieure de Commerce de Paris)

Abstract

Companies that rely on Management By Objectives systems typically encounter two types of difficulty: objectives may be too difficult to attain, especially when there is top-down pressure; and reference to objectives defined at the start of the year may be a questionable basis for year-end performance evaluation when managers' results have been affected by unforeseen events. Our purpose is to examine how MBO is used when managers simultaneously face high pressure to achieve objectives and high environmental uncertainty.Based on a study of fourteen sales executives, this article identifies two types of organizational adjustments brought into play by executives to cope with this type of situation: a more collective management approach to ensure achievement of overall corporate objectives, and development of close interpersonal relationships that build mutual trust between sales executives and their staff.

Suggested Citation

  • Madeleine Besson & Hélène Löning & C. Mendoza, 2008. "Sticking together under pressure : the risk-sharing approach and trust-building in sales management," Post-Print hal-00853262, HAL.
    • Handle: RePEc:hal:journl:hal-00853262
    DOI: 10.1016/j.emj.2007.08.007
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    Citations

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    Cited by:

    1. Spillecke, Susanne B. & Brettel, Malte, 2013. "The impact of sales management controls on the entrepreneurial orientation of the sales department," European Management Journal, Elsevier, vol. 31(4), pages 410-422.
    2. Kroeger, Frens, 2015. "The development, escalation and collapse of system trust: From the financial crisis to society at large," European Management Journal, Elsevier, vol. 33(6), pages 431-437.
    3. Madeleine Besson & Laure Lavorata, 2013. "Adaptation des systèmes de contrôle en temps de crise. Perceptions et réactions des commerciaux," Post-Print hal-01123789, HAL.
    4. Lueg, Rainer & Borisov, Boris Genadiev, 2014. "Archival or perceived measures of environmental uncertainty? Conceptualization and new empirical evidence," European Management Journal, Elsevier, vol. 32(4), pages 658-671.

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