Leading the Effective Sales Force: The Asian Sales Force ... - Insead

CHAPTER 3: CONTROL SYSTEMS: THEIR RELATIONSHIPS WITH JOB
PERFORMANCE ACROSS TWO DIFFERENT CULTURES
Introduction
In this document, the findings of two recent studies on the linkage between control systems
and job performance in China are summarized. The studies offer very important findings on
the Chinese market – an emerging economic power which Westerners are interested in. In
addition, direct comparisons are made to the USA – the world’s largest economy which
Westerners are very familiar with.
Comparisons between China and the USA
1 st Source: Fang, Eric, Evans, Kenneth R., Zou, Shaoming (2005), “The moderating effect of
goal-setting characteristics on the sales control systems – job performance relationship,”
Journal of Business Research, 58 (9), 1214-22.
This research investigates how goal-setting characteristics determine the effectiveness of
sales control systems (outcome control, activity control, and capability control) on job
performance.
The authors propose a contingency model in which the effects of sales control systems on job
performance are moderated by goal-setting characteristics (goal difficulty, goal specificity,
and goal participation). They empirically tested the model using two studies conducted in the
USA and China respectively.
The definitions:
− In this research, sales control systems are classified into the following three types of
supervisory controls defined by Challagalla and Shervani (1996), and Kohli, Shervani and
Challagalla (1998):
(a) Outcome control focuses on the achievement of end results, such as sales volume.
(b) Activity control focuses on routine activities employees are supposed to perform.
(c) Capability control focuses on the development of employees’ skills that enhance the
quality of their behavior.
Though the above-mentioned classification of control systems appears different from that
adopted by Anderson and Oliver (1987) at first glance, the two classifications are actually
similar. In Anderson and Oliver (1987), control systems are classified into those that
emphasize end results (i.e. outcome control) and those that stress inputs and processes (i.e.
behavior control). Hence, outcome control is the same in both papers. Also, Anderson and
Oliver (1987)’s definition of behavior control can be viewed as a combination of Fang, Evans
and Zou (2005)’s activity control and capability control.
− In this research, goal-setting characteristics are defined according to definitions adopted
by Locke and Latham (1990):
(a) Goal difficulty refers to the degree to which the goals assigned by a supervisor are
attainable.
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