Decision Making

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Drivers of Salesperson engagement and performance
Drivers of Salesperson engagement and performance 150 150 Stéphane THION

In 1999, Deci, Ryan and Koestner meta-analysis of 128 studies on children and college students examined the effects of extrinsic rewards on intrinsic motivation. The results of this study confirmed that tangible and expected rewards significantly undermined intrinsic motivation. In other words, tangible rewards have a significant and negative effect on intrinsic motivation for interesting tasks. These results confirmed Deci’s 1971 research and positioned themselves within a debate that took place in 1975 and 1976 and contribute to the development of Deci and Ryan’s Cognitive Evaluation Theory (1980, 1985). The undermining effect of extrinsic motivation on intrinsic motivation received attention in the organizational literature, but this attention quickly fades away for different reasons. Among them, the fact that many activities are not intrinsically interesting, which limits managerial implementation, and the fact that managers will have to focus on one or the other. As a result, Deci and Ryan rethought their work and developed the Self Determination Theory (1985) intended to address this issue.

Fifteen years after Deci and colleagues’ meta-analysis, Cerasoli and Nicklin Meta-Analysis on the predicting effects of Intrinsic and Extrinsic Motivation on performance reiterated the central role of intrinsic motivation in performance. But this study emphasised above all, “in a crowding out” fashion, that intrinsic motivation was less important to performance when incentives were directly tied to performance and was more important when incentives were indirectly tied to performance”. In other words, intrinsic motivation predicted better quality of performance whereas incentives predicted better quantity of performance (Cerasoli, Christopher P., Jessica M. Nicklin, and Michael T. Ford (2014), ‟Intrinsic Motivation and Extrinsic Incentives Jointly Predict Performance: A 40-year Meta analysis,” Psychological Bulletin, 140 (4), 980–1008).

This debate on the combined effect of intrinsic and extrinsic motivations is now long-standing but led us, within the GAPSET lab, to ask the following question: To what extent do motivations interact in the salesperson engagement process and finally contribute to performance?

In other words, in a context that is no longer that of the 1970s and 1980s, where behaviours are changing with the arrival of new generations, what about the commitment of salespeople?

The final aim is therefore to identify the factors that improve performance, to quantify these effects and to predict their consequences.

To this end, a questionnaire was administered to a sample of 224 managers, sales reps, business developers and consultants of all nationalities.

Results

As presupposed, job engagement has a positive effect on performance (two different measurement scales were used, referred to here as “Performance” and “Results”). Nearly 14% of performance variance is explained by engagement. This is an important figure, as we know that engagement alone cannot explain performance: other factors also contribute, such as competence, commitment to objectives, etc.).
As suggested by Self-determination Theory, the main motivation driving engagement is intrinsic motivation, i.e. engaging in work for its own sake, with an effect (β) of 0.527 (p<0.001). Introjected extrinsic motivation or ego involvement, the fact of engaging to be recognized by others, has a smaller effect (β= 0.161, nearly significant with p= 0.021) and external extrinsic motivation a quite comparable effect (β= 0.170, p= 0.014). All the different types of motivation contribute to near 65% of the variance of salesperson engagement.

Interestingly, this study also reveals that external extrinsic motivation—such as working for monetary gain—has a significant negative moderating effect on outcomes (β = -0.230, p = 0.005).

These findings underscore the complex role of reward-based motivation, which can sometimes be counterproductive, and they support the relevance of Deci and Ryan’s original Cognitive Evaluation Theory.

In today’s increasingly VUCA world—characterized by volatility, uncertainty, complexity, and ambiguity—where information, technology, and human behavior are evolving rapidly, traditional frameworks should be applied with caution. Adapting theories to specific contexts is challenging, which highlights the growing importance of developing the right cognitive skills.

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The power of methodology
The power of methodology 150 150 Stéphane THION

For over twenty years, numerous observers have pointed out a persistent gap between management research and the realities of the business world. Various reasons have been cited for this disconnect, with practitioners often criticizing academic research for its lack of practical relevance or even clarity (Avenier, 2009; Glady, 2014). Despite notable progress in recent years, this divide remains.

Yet, in an increasingly unstable world—marked by volatility, uncertainty, complexity, and ambiguity—knowledge management is more crucial than ever. Today, uncertainty is no longer the exception but the rule. As a result, the acquisition, revision, and even creation of knowledge have once again placed learning at the center of our concerns.

Learning how to conduct research, however, is first and foremost about acquiring specific skills—such as analytical thinking and systems thinking—as well as mastering a methodology. This methodology, along with its associated methods, enables individuals to engage with the latest knowledge in a given field: to challenge it, refine it, and contribute to its evolution.

Such research methodology and the skills it develops can offer significant value to the business world. Ultimately, it enhances decision-making processes. Furthermore, mastering these skills provides access to a vast body of scientific literature in management—and beyond—allowing professionals to analyze, understand, and apply this work effectively.



N. Glady (2014), Comment réconcilier le monde de la recherche et celui de l’entreprise, Harvard Business Review.
M.J. Avenier (2009), Franchir un fossé réputé infranchissable : construire des savoirs scientifiques pertinents pour la pratique, Management & Avenir 2009/10 (n°30), pages 188 à 206.

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Cognitive skills
Cognitive skills 150 150 Stéphane THION

As part of its ‘Skills Revolution by 2030’ project, the World Economic Forum is working on a taxonomy of global skills. This taxonomy currently includes two main categories of skills: skills, knowledge and abilities, and attitudes.

Within the first category, cognitive skills stand out alongside managerial, technological and engagement skills.

According to the World Economic Forum’s ‘Future of Jobs’ 2025 report, cognitive skills are increasingly in demand by large companies. And they will become even more important in the years to come.

Hence the question: what do cognitive skills cover?

According to the World Economic Forum, cognitive functioning refers to multiple mental abilities, which are categorised into three groups:

(1) creativity and problem solving,

(2) mathematics and statistical thinking, and finally,

(3) speaking and writing languages.

Creativity and problem solving include analytical thinking and systems thinking, which we discussed in two previous videos, as well as creative thinking, i.e. the ability to come up with a new idea or concept.

Statistical and mathematical thinking encompasses the ability to handle numbers, calculate or estimate, use advanced mathematical techniques or solve equations, and finally data analysis and mathematical modelling.

Finally, speaking and writing languages includes the basic skills of reading, speaking, writing, editing, and finally communicating in foreign languages.

Which brings us to the second question: how can this set of skills be acquired?

Clearly, the set of cognitive skills identified by the World Economic Forum corresponds to the purpose of doctoral programmes.

These programmes, whether the academic PhD or the DBA, which aims to improve the decision-making process in organisations, generally integrate all these skills through action learning.

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Analytical Thinking
Analytical Thinking 150 150 Stéphane THION

The world is changing. Rapidly. The production of knowledge, for example, through academic publications, is evolving exponentially. Technology, of which AI is the most emblematic example, is also following this trend. And what about the proliferation of dubious or even false information?

Unfortunately, in this complex and uncertain world, we all suffer from many prejudices. Within organisations, decision-making is becoming increasingly complex and risky.

As early as 1973-74, the work of Tversky and Kahneman highlighted the cognitive biases to which decision-makers were subject. Hogarth identified some thirty of these in 1987. And the work of Eisenhardt and Zbaracki, in 1992, showed that rationality was not the norm in decision-making processes within large organisations.

In this context, a skill is emerging: analytical thinking.

According to the World Economic Forum’s ‘Future of Jobs’ 2025 report, analytical thinking is and will remain the skill most in demand by large companies. This report is based on a sample of more than 1,000 large international companies. This skill has thus become a training priority for half of them.

So, what is analytical thinking?

According to the taxonomy of skills created by the World Economic Forum, analytical thinking is the ability to break down complex concepts and ideas into basic or fundamental principles. This skill encompasses critical thinking, which allows one to make judgements by analysing and interpreting facts and information.

The world of research has, of course, taken an interest in this skill. According to Facione (1990), analytical thinking involves skills such as classification, relating concepts and organising information, with the aim of identifying solutions or solving problems in a systematic way. According to Paul and Elder (2006), critical thinking covers skills such as clarifying concepts, analysing arguments and evaluating evidence and counter-arguments. It involves the ability to identify biases, prejudices and logical flaws.

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Why does methodology matter?
Why does methodology matter? 150 150 Stéphane THION

John D. Sterman (2000) wrote: “People are poor intuitive scientists, generally failing to reason in accordance with the principles of scientific method”. Sterman then goes on to explain his thinking with examples:

  • We do not generate sufficient alternative explanations or consider enough rival hypotheses.
  • Our judgements are strongly affected by the frame in which the information is presented.
  • We suffer from overconfidence in our judgements, wishful thinking and the illusion of control.
  • We violate basic rules of probability, do not understand basic statistical concepts such as regression to the mean or Bayes’ rule.
  • Memory is distorted by hindsight, the availability and salience of examples, and the desirability of outcomes.”

In other words, data can be biased because people are biased. Even scientists are biased. For instance, Hogarth (1987) discusses 30 different biases and errors documented in decision-making research.

Further evidence that highlights the importance of methodology in the difficult process of managerial decision-making.

This is probably why analytical thinking is the skill that will be most in demand in the business world between now and 2027, according to WEF Future of Jobs 2023 and 2025.

  1. Sterman, J. D., 2000, Business Dynamics, Systems Thinking and Modelling for a Complex World, Boston, McGraw Hill, p.30.
  2. Hogarth, R. M., 1987, Judgment and choice, 2nd Edition, New York: Wiley.
  3. World Economic Forum (2023), Future of Jobs Report 2023: Insight report, Figure 4.6 p.43

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Does decision process matter?
Does decision process matter? 150 150 Stéphane THION

This was the question posed by Dean & Sharfman nearly 30 years ago in their paper: ‘Does decision process matter? A study of strategic decision-making effectiveness’ (Academy of Management Journal, 1996, n°39).

To examined whether decision-making processes are related to decision effectiveness, they studied 52 decisions in 24 companies. More specifically, the goal was to determine if procedural rationality and political behaviour influence decision success.

The main finding of their research was that ‘managers who collected information and used analytical techniques made more effective decisions than those who did not’. And ‘those who engaged in the use of power or pushed hidden agendas were less effective than those who did not’. But their research also confirmed that ‘environmental instability and quality of decision implementation play important roles in influencing decision effectiveness’.

If this well-known research confirms the importance of rationality, in an increasingly unstable environment, most chief executives and managing directors acknowledge the importance of analytical thinking in skills management.

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Systems thinking
Systems thinking 150 150 Stéphane THION

According to Sterman (2002), “In a world of accelerating complexity and change, thoughtful leaders increasingly recognize that the tools we have been using have not only failed to solve the persistent problems we face but may in fact be causing them. All too often, well-intentioned efforts to solve pressing problems create unanticipated side effects. (…) For many, the solution lies in systems thinking, the ability to see the world as a complex system, to understand how ­everything is connected to everything else.”

Indeed, Systems Thinking is an approach to understand the complexity of the world by focusing on wholes and relationships rather than breaking it down into individual parts. It is used to explore and develop effective actions in complex situations, promoting systems change.

Interestingly, Systems Thinking complements analytical thinking, whose aim is to process and break down complex information, by identifying cause and effect relationships.

This specific top skill is a core skill for 1/3 of companies in the world, an increasingly important skill for 60% Of companies and a reskilling priority for 15% of them (WEF, Future of Jobs report 2023).

System dynamics forms a complete module within the TBS Educations executive DBA, and it is possible to study it in greater depth as part of one’s thesis.

According to John D. Sterman (2002), “In a world of accelerating complexity and change, thoughtful leaders increasingly recognize that the tools we have been using have not only failed to solve the persistent problems we face but may in fact be causing them. All too often, well-intentioned efforts to solve pressing problems create unanticipated side effects. (…) For many, the solution lies in systems thinking, the ability to see the world as a complex system, to understand how ­everything is connected to everything else.”

Systems Thinking is an approach to understand the complexity of the world by focusing on wholes and relationships rather than breaking it down into individual parts. It is used to explore and develop effective actions in complex situations, promoting systems change.

Interestingly, Systems Thinking complements analytical thinking, whose aim is to process and break down complex information, by identifying cause and effect relationships.

This specific top skill is a core skill for 1/3 of companies in the world, an increasingly important skill for 60% Of companies and a reskilling priority for 15% of them (WEF, Future of Jobs report 2023).

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