FUZZY ANALYTIC HIERARCHY PROCESS

A FUZZY ANALYTIC HIERARCHY PROCESS (FAHP) APPROACH FOR SALESPERSON CANDIDATE ASSESSMENT

Fatih ECER

Department of International Trade and Finance, Faculty of Economics and Administrative Sciences, Afyon Kocatepe University, Turkey.

E-mail: fatihecer@gmail.com


Fikret YAMAN

Department of Business Administration, Faculty of Economics and Administrative Sciences, Afyon Kocatepe University, Turkey.

E-mail: fyaman78@ gmail.com


Semih AÇIKGÖZOĞLU

Department of Business Administration, Faculty of Economics and Administrative Sciences, Afyon Kocatepe University, Turkey.

E-mail: sacikgozoglu@aku.edu.tr



ABSTRACT

Hiring of salesperson is a crucial factor for firms to survive. In addition, selection of successful salespeople is one of the most important decision facing managers. Salesperson gets across between firms and their costumers. In other words he/she provides information and services to the costumers when they are purchasing. In this study ten salesperson candidates are assessed by five main criteria which are demographic and physical characteristics, experience, aptitude, personality, skills, and their fourteen sub-criteria using with a fuzzy analytic hierarchy process (FAHP) proposed by Chan and Kumar (2007). After calculations, salesperson candidates rank from the best to the worst with respect to their scores. The study shows that FAHP is effective and convenient technique for the selection of salesperson.

Key words: Fuzzy AHP, salesperson, assessment.

JEL Classification: M51, M31, C02.

1. INTRODUCTION

Salespeople are the revenue generators for their companies. This responsibility generates pressure to prove their competence by delivering high-quality work and contribute to organizational goals (Holmes and Srivastava, 2002: 423). Effective selection of salesperson is critical element of long-term organizational success. Selection decisions for salesperson are very important and have the potential to significantly impact an organization's revenues and profitability (Marshall et al., 2001: 19). In other words, hiring the best salesperson is the first step to improve sales productivity for firms (Lawrence et al., 2007: 797). In spite of this, many research devoted to salesperson selection is scarce compared to other sales management tasks such as training, evaluation, compensation, and retention.

The selection of salespeople is a difficult task face in all industries. One of the biggest challenges that a business faces is the effective selection and hiring of salespeople. Many organizations miss the fact that the most important element in developing an effective sales force is selecting individuals with known behavior characteristics required to be a successful salesperson. However, firms usually don't take into consideration something which related to different sales positions require different qualifications (Randall and Randall, 2001: 77).

The literature on salesperson recruitment is substantial (Darmon (1993); Weilbaker and Merritt (1992); Wotruba et al. (1989)) yet, relatively few studies have examined salesperson selection decisions. For instance, Patton and King (1992) on the use of human judgment models and Marshall et al. (1995) on sales manager risk taking. Johnston and Cooper (1981), is denoted salesperson selection process in three levels. This is about preliminary screening of resumes and application form. Level 1 looks at the candidate’s education, work experience, age data. Level 2 is initial interview which is looking for, personal characteristics (dress and appearance, cleanliness), personality (interactive skills, verbal ability), and motivation (interest in company, other interpersonal characteristics, and other historical or factual information). Level 3 is about intensive interview and testing. In this level, managers look the mental aptitude, physical health and career goals more than Level 2.

Before any selection process is developed, a comprehensive job analysis should be conducted. The job analysis must include job descriptions, selection procedures, and training programs. Criteria must also develop through job analysis (Randall and Randall, 2001: 77).  From past to now many different methods about salesperson selection have been used. For example, Wotruba et al. (1989) is expressed that application blanks, interviews, references, psychological tests, physical examinations, and simulation tests can be used for selection. Oberhaus et al. (1993) is identified when a firm assesses salesperson candidates it can utilize the methods which are screening resumes and applications, interview, testing, assessment center, background investigation, and physical exam. Randall and Randall (2001) report that interview, bio data, assessment centers and simulations, letters of recommendations, reference checks, graphology, personality testing, blood type, physical appearance, and hiring a competitor's sales representative are the various selection techniques for salespeople. One of them can be used or a combination of them can be used together for selection.

The purpose of this study is to provide a discussion of criteria used salesperson selection briefly and propose a technique called FAHP proposed by Chan and Kumar (2007) to determine the best salesperson candidate.

The remainder of the study consists of the following sections. First, selection criteria for salesperson selection are presented. Second, fuzzy AHP approach is explained. Third, a salesperson selection problem is solved using with fuzzy AHP approach. And finally, results are discussed.

2. SELECTION CRITERIA FOR SALESPERSON SELECTION

Many selection criteria are used in the salesperson selection process in the literature. It depends on the industry or sector. Also in the same sector, different firms can use different criteria.

Andaleeb and Anwar (1996) have identified some salesperson characteristics which are expertise (knowledgeable and competent), intention, and likability (friendly and pleasant) to trust in salesperson.  Swan and Nolan (1985) claimed that if salesperson increased his some characteristics such as formal education and years of sales experience then costumer perception about salesperson's ability could occur. Hawes et al. (1993) implied that the single most often mentioned characteristic of the top salespeople is thoroughness and follow-through, with these subsequent high ranking traits: knowledge of product, willingness to go to bat for the buyer, market knowledge, imagination in solving buyer problems, knowledge of buyer's needs, tact, preparation, regularity of sales calls, and technical education. Churchill et al. (1990) identified the many variables to predict sales success which are cognitive abilities, verbal fluency, sales aptitude, responsibility, dependability, keeping promises, dominance, taking command, sociability, gregariousness, confidence, technical knowledge, and interpersonal skills. Prus (1989) used the phrases which are generating trust, offering customer assistance, being attentive to customer needs, approaching repeat customers, uncovering product applications, evidencing product quality, demonstrating products, providing price comparisons, developing and maintaining loyalty, closing sales, dealing with returns, and maintaining selling enthusiasm to describe sales activities.

Johnston and Cooper (1981) divided selection criteria into two groups called most important which includes educational experience, responsibility, trustworthiness, interpersonal relation with colleagues and costumers, and least important which includes marital status, quality of voice, parts of country lived in, and size of city where he grew up. Sheets and Bushardt (1994) pointed out that some criteria which are appropriate appearance, personality, attractiveness, and dress could be important in the selection. Randall and Randall (2001) classified selection criteria in six main criteria which are demographic and physical characteristics, background and experience, current status and lifestyle, aptitude, personality, and skills.

In our study, we use five main criteria and their fourteen sub-criteria as shown in Fig. 1. They are determined by the shopping center human resources manager's experience and salesperson characteristics in the literature as mentioned above for selecting candidate to store department. These criteria and their short explanations are specified in following.


2.1. Demographics and physical characteristics

Salesperson's demographic and physical characteristics affect customers’ opinions. In the consumer decision making, first impressions are essential. Salesperson conveys his personality, affect, and motivations in the first several seconds of an interaction, perhaps even before any verbal contact, in the way they approach or greet consumers (Ambady et al. 2006: 4).  Age, sex and physical appearance can be studied in this subject.

Age : Age is a part of the demographic characteristics. It is also important for selection of salesperson candidates. Firms desire to select young candidate in that their long term employee-employer relationship can more profitable to both sides.

Sex : Male or female salesperson can be desired by firm managers. A research found that males were thought to be more qualified then females for “masculine” jobs, females were thought to be more qualified than males for “feminine” jobs in personnel selection decisions (Sheets and Bushardt; 1994: 374). Moncrief et al. (2000) found that there were no difference between male and female salespeople with respect to performance, role ambiguity, job stress, and job satisfaction, yet they differed in accordance with role conflict, met expectation, and propensity to leave.

Physical Appearance: Hawes et al. (1993) found that personable style is one of the most important salesperson sub-criteria. Customers may hold favorable or unfavorable perceptions of salesperson based on whether sales personnel look professional. Potential indicators of salesperson might be clothing, neatness, and hairstyle. Such factors are considered critical to selling success (Lee and Dubinsky; 2003:29). Randall and Randall (2001) indicate that firms may be hiring based on looks. Also they emphasize that certain things in appearance, including clothing, demeanor, and cleanliness is looked for in candidate. Shannon and Stark (2003) showed that various physical appearance variables which are not job related have a substantial impact on personnel decisions in accordance with firms.

2.2. Experience

Experience is sum of the product knowledge, job knowledge and past years in the specific jobs (Roman and Munuera, 2004: 480). A salesperson's experience will increase both his/her success and also job satisfaction. On the other hand, firms should look at a candidate's inherent abilities and not attempt to hire experienced one forasmuch as training can overcome lack of experience (Randall and Randall, 2001: 77). Experience includes education and sales experience in this study.   

Education : Education is sum of the level of education and educational content. Level of education subsumes salespersons’ years of schooling. Educational content subsumes salespersons’ collage major and number of business sales course (Churchill et al., 1990: 389).

Sales experience : Sales experience refers to the length of time a salesperson has worked in a professional selling position (Shoemaker, 2002: 120). Sales performance is influenced by the salesperson’s knowledge of selling situations (Macintosh et al., 1992: 25). Experienced salespeople demonstrate a higher level of adaptiveness.

2.3. Aptitude

These criteria show that some personal abilities and inherent abilities play critical roles in an evaluation process. Aptitude can be divided into three parts such as cognitive ability, verbal, and intelligence. Aptitude consists of cognitive ability, verbal and intelligence part in this study.

Cognitive ability : Cognitive approach focuses on linking behavior to the underlying knowledge structures of the individual (Macintosh et al., 1992: 23). This skill enables salesperson to interact with other people, to work effectively as a member of a team, to motivate other salespeople, and to resolve conflicts.

Verbal : Articulateness is accepted potential indicator of salesperson professionalism (Lee and Dubinsky; 2003: 29). The salesperson’s verbal behavior provides cues for customers to use in making inferences about the salesperson’s disposition and motives. Also it helps to make evaluations of the salesperson and his/her firm (Brown, 1990: 17). Verbal skill has been placed fifth of ten indicator of sales aptitude in a study (Churchill et al., 1990: 387).

Intelligence :   If salesperson knows the needs of consumers and answer their questions cleverly, consumers will tend to buy products or services. In the literature, Sternberg (1985) recognized that intelligence is important factor for success of salesperson and also firms. McDaniel et al. (1997) found that intelligence is correlated with job performance.

2.4. Personality

A successful sale depends on a customer’s perception of the salesperson’s personality (Ambady et al. 2006: 4). Personality subsumes social insight, social maladjustment, social appropriateness, social openness, social influence, empathy, warmth, and extraversion (Hough and Oswald, 2000: 637). Responsibility, compliance and self-assurance are thought components of personality.

Responsibility : The primary responsibility of a salesperson is to conclude a sale successfully. This task will involve the identification of customer needs, presentation and demonstration, negotiation, handling objections and closing the sale (Jobber and Lancaster; 1997: 85). Also, salesperson must be responsible to his/her firm.

Compliance : Kotler and Amstrong (2001) denoted that salesperson should have some specifications. Compliance is one of these specifications. Compliance is an important criterion in selection process.

Self-assurance : If a person is confident, he can stand criticism, claims to have abilities and skills, is confident of success, and believes others have a positive attitude toward him/her (Churchill vd; 1990: 390). Self assurance is formed when salespeople getting and experience in the course of time (Russell et al., 1978: 72).

2.5. Skills

As a skill is practiced, awkwardness is overcome and skillfulness takes its place. Skillful is the result of conscious effort and requires thinking, planning and practice (Oberhaus et al., 1993: 65). Vocational skills, sales presentation and communication skills are thought in our study.

Vocational skills : Vocational skills encompass a salesperson’s acquired knowledge and abilities directly related to his/her firm, its products, and customers. The more such skill a salesperson has the better his or her performance. Vocational skills account on average for more than 9 percent of the variance in sales performance (Churchill vd; 1990: 400).

Sales presentation : People do not buy products or services, they buy solutions to their problems. The salesperson able to translate product features into people benefits will find customers buying faster and returning again and again (Marks, 1997: 283).

Communication skills :  The importance of communication skills in marketing is widely accepted. Many studies have focused on verbal and nonverbal (facial expressions, eye contact, gestures, postural movements, vocal intonation, proxemic behaviors) communication on sales success (De Meuse and Erffmeyer, 1994: 11).

3. FUZZY AHP (FAHP) APPROACH

Analytic hierarchy process (AHP) has been widely used to address the multi-criteria decision making problems. However, it has been generally criticized because of the use of a discrete scale of one to nine which cannot handle the uncertainty and ambiguity present in deciding the priorities of different attributes. In AHP, the pairwise comparison is established using a nine-point scale which converts the human preferences between available alternatives as equally, moderately, strongly, very strongly or extremely preferred. Yet, it is not sufficient to take into account the uncertainty associated with the mapping of one’s perception to a number. The linguistic assessment of human feelings and judgements are vague and it is not reasonable to represent it in terms of precise numbers. It feels more confident to give interval judgements than fixed value judgements. Hence, triangular fuzzy numbers are used to decide the priority of one decision variable over other. Synthetic extent analysis method is used to decide the final priority weights based on triangular fuzzy numbers and so-called as fuzzy AHP (FAHP) (Chan and Kumar, 2007: 423). Steps of this approach are the following:

Step 1: First the fuzzy evaluation matrix of the criteria is constructed by the pairwise comparison of the different criterion relevant to the overall objective using triangular fuzzy numbers shown in Table 1. 



Source: Chan and Kumar, 2007: 424.

Step 2: In this step, priority weights at different levels of hierarch are calculated. Suppose that  is object set and  is objective set. Then, according to the concept of extent analysis (Wang et al., 2007: 2-3) each object is taken and extent analysis for each objective  is performed, respectively. Therefore the  extent analysis values for each object are obtained with the following signs:


where all the   are triangular fuzzy numbers.

The value of fuzzy synthetic extent with respect to the th object is defined as

The value can be found by performing the fuzzy addition operation of  extent analysis values from a particular matrix such that

and the value of  can be obtained by performing the fuzzy addition operation of   such that


where  is a non-fuzzy number and this gives the priority weights of one alternative over other.

Step 3: After the fuzzy evaluation matrices of decision alternatives and corresponding weight vector of each alternative with respect to corresponding sub-criteria are determined, the priority weights of alternatives are calculated by adding the weights per alternative multiplied by weights of the corresponding sub-criteria.

Step 4: Finally the priority weights of each alternative are calculated by weights per alternative multiplied by weights of the corresponding criterion. The highest score of the alternative gives the idea about the best alternative among all alternatives.

4. APPLICATION

Combinations of various techniques generally produce the best solutions (Randall and Randall, 2001: 79). Therefore, in our selection process contains both interview and FAHP approach.

Decision maker, human resource manager of a shopping center, first determines the selection criteria discussed in Section 2. He desires to hire someone whose age between 20-30 years, genial, at least high school degree, having sales experience, available for teamwork, having verbal and nonverbal communication skills, having always ready to answer, taking a responsibility, having compliance to his work an firm, self-assured, and having selling presentation skill. After that, he begins the screening process by conducting a background check to eliminate undesirable candidates. Then he interviews with salesperson candidates. He assesses them in accordance with five main criteria and their fourteen sub-criteria. Pairwise comparison of main criteria with respect to the overall objective and priority weights are shown in Table 2.



In accordance with Table 13, the salesperson candidate  is the best candidate in that it has the highest priority weight. On the other hand,  is the worst candidate. Through this approach, it is found that salesperson selection problem can be solved in a hierarchy and simple manner without involving much complexity.


5. CONCLUSION

In this paper a FAHP approach is presented to select the best salesperson candidate. For this purpose, five main criteria and fourteen sub-criteria have been decided based on the literature and human resource manager of shopping center. It should express that the criteria we used cannot be the best for the selection of salesperson for two reasons. First, there are so many sales positions and so many personalities and skills which are required to overcome in these positions. Second, the selection must be conformed for each industry or each firm. The large number of criteria and sub-criteria demonstrated complexities being involved in the selection of salesperson. Each factor affected the selection process have been discussed briefly.

According to FAHP, main criteria are compared with each other. Similarly, sub-criteria are compared with each other, too. Thus, priority weights of them are obtained. Then, priority weights of candidates are calculated in accordance with both sub-criteria and main criteria. The final priority weights of different criteria shows that "skills" carry the highest priority (0.52) and it is followed by "demographics and physical characteristics" (0.18), "aptitude" (0.11), "personality" (0.11), and "experience" (0.08). Communication skills, one of the skills' sub-criteria, have the highest priority and it is followed by sales presentation and vocational skills. Similarly, under the demographics and physical characteristics, physical appearance has the highest priority and it is followed by age and sex. Verbal has the highest priority and it is followed by cognitive ability and intelligence under the aptitude criterion. Under the personality, responsibility has the highest priority and it is followed by compliance and self-assurance. Finally, under the experience, sales experience has the highest priority and education is the last important attribute.

Discussed FAHP approach in this paper is proved to be simple, less time taking and having less computational expense as compared to other existing decision-making models. The use of this approach does not involve clumsy mathematical operation. Also, it has the ability to capture the vagueness of human thinking and effectively solve multi-criteria decision making problems. This study can be extended to add more salesperson candidates but this can increase the computational complexities.

Any technique used in the past for selection of salesperson is not superior to another. If it is false, then firms may use a specific technique as a decision tool. So, we don't assert FAHP is the best technique, yet we assert that it is very appropriate for salesperson selection.