Sales Performance Rankings: Examining the Impact of Information Display on Performance Improvement
(A2024-119457)

AUTHORS

Molly Ahearne, Terry School of Business, University of Georgia; Mohsen Pourmasoudi, Fowler College of Business, San Diego State University; Yashar Atefi, Daniels College of Business, University of Denver

ABSTRACT

Although performance rankings are commonly used as a motivational tool by sales organizations, research on their effectiveness remains limited. The scant research that has examined performance rankings has not looked at the effect of displaying various types of information alongside rankings. This research addresses this gap in the literature by examining the differential effects of performance rankings across three unique information conditions. In an observational study of more than 27,000 salespeople from over 170 firms, the authors pinpoint situations where performance rankings can serve as a highly effective tool for stimulating competition among salespeople and motivating performance improvement. However, the authors also identify conditions where performance rankings can do more harm than good. Specifically, managers should exercise caution when sharing supplementary information alongside performance rankings, particularly regarding sales quotas.