How Good Are Managers at Evaluating Sales Problems?

This study examines how sales managers evaluate the severity of problems facing their sales units. Attribution literature is utilized to understand how managers may misjudge the severity of these problems. Interviews were used to identify typical sales problems and to develop measures of performance. A subsequent survey measured problems and performance among a sample of 160 sales distributors. Univariate analysis reveals that managers assess uncontrollable problems as more severe. In contrast, bivariate analysis reveals that more controllable problems have a greater negative impact on performance. Managers appear to exhibit a bias that limits their ability to accurately evaluate sales problems.