Myths of Sales Management – Quota is an Employee Management Tool

Myth #3: Quota is an Employee Management Tool

Why It’s a Myth: Quota defines the minimum performance standard of an organization and the minimum performance of the individual inside that organization. When it is used as a management tool, managers are placing maximum emphasis on minimum performance. The result is entirely predictable: the entire sales team aims at the minimum standard and seldom exceeds it.

Why It’s Believed: Human beings are complex and difficult, with variable means of becoming motivated. By contrast, a quota is easily understood, making it a convenient short-cut when it comes to setting goals that are suppose to motivate the team to sell.

The Real Truth: Quota is a corporate measurement tool. Quota is simply what the organization needs to achieve in order to fulfill its goals. Quota has nothing to do with what the employee wants from his or her employment with the organization. It does not motivate, even when managers uses it as a club to beat employees about the head and shoulders at the end of the month.

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