The Synergy of Control Systems: Exploring the Interactive Effect of Formal and Informal Controls on Salesperson Well-being.
(A2025-126321)

AUTHORS

Melanie Bowen, Justus-Liebig-Universität Giessen; Rhett Epler, Old Dominion University; Laurianne Schmitt, IESEG School of Management

ABSTRACT

This study explores the interplay between formal and informal controls in sales management and their effects on salesperson work well-being, which in turn is suggested to affect salesperson performance. While prior research has primarily focused on the impact of formal controls on sales performance, our study elucidates the interactive effects of formal and informal controls and how they affect work well-being. This interactive perspective provides a more detailed and sophisticated understanding of control systems and their effects. Our results show that formal controls (i.e., activity, outcome, and capability controls) impact well-being differently, with outcome controls enhancing well-being and activity controls diminishing it. Informal controls (i.e., self-control, social control, and cultural control) moderate these effects. Further, we find that work well-being positively affects salesperson performance. These insights contribute to a deeper understanding of the role of formal and informal control systems in affecting employees well-being, and provides actionable insights for improving sales management practices through a balanced and culturally sensitive approach. In addition, our results underscore the significance of psychological and emotional elements in attaining desired sales outcomes, thereby expanding the purview of research on performance metrics beyond conventional behavioral and output measures.