The aim of the present paper is to study the reward system for key roles in firms with high added value, high qualification employees and high research investments. Specifically, the main objective of this study is to analyze the logic that guides and governs reward system in relation to motivational processes of individuals. In order to investigate empirically this topic, the paper analyses the compensation system applied for the role of medical sales representative (MSR) in the pharmaceutical industry and his/her motivation profile. Pharmaceutical firms are organizations in which technology is a critical variable in the pursuit of the competitive advantage. The features which distinguish these firms are the high impact of personnel and R&D expenses, the high technical sophistication of products and the presence of rules governing the development, production, distribution and marketing of the product that are more restrictive than other sectors. The success of pharmaceutical firms seem to be based on two main levers, which are: research for product innovation and the management of the relationship with the “client”. Considering the second lever of the pharmaceutical firm success and the difficulty in the use of traditional operational marketing, medical sales representatives play an important role due to their position of ‘cornerstone’ in the relationship between the firm and the market. Starting from reflections made in previous studies, this paper considers that the effectiveness of incentives systems depends on the perception of individuals and therefore, the effectiveness of incentives is determined by the characterization (intrinsic or extrinsic) of motivational push to work. In our consideration, strategic incentive processes should deny the “mechanicistic” logic oriented to the search for and apply of the most effective incentive able to produce a behaviour which is requested by the organization. Rather, strategic incentive processes should look at the perception of the individual with regard to incentives as perceived by the individual and therefore mediated by motivations. In this sense, in our empirical work we adopt the idea of categorization of groups of individuals belonging to the same profession according to their motivational push and we analyse, then, their preference in terms of incentives. The empirical analysis presents the results of an investigation based on of 5 pharmaceutical firms operating in Tuscany (Italy). In order to create prior evidences for the construction of an interpretative framework, a questionnaire was given to a sample of 41 medical sales representatives working for the five firms investigated. The questionnaire measured the extrinsic rewards, intrinsic rewards and motivation profile of the job holder. In the approach here adopted self-reported scores evaluations which are accepted, on the basis of previous researches, as suitable proxies. The extrinsic rewards derive from factors associated with the job context. This include financial payments, working conditions and managerial behaviour. Intrinsic rewards than refer to ‘psychological enjoyment’. These rewards derive form factors inherent in the way in which the work is designed that is the job content. Furthermore, the motivation profile of the job holders was build based on the measurement of a 9 factors motivation profile questionnaire. Through a statistical analysis we first identified motivational profiles and than relate them to perception in terms of incentives. A further reflection was made on the policy actually used by the firms for the different motivational profiles. In conclusion, the paper will define an interpretative framework for managing key positions in ‘people intensive firms’ through the ‘lever’ of the rewards systems, by considering a new methodological approach which seems, in our opinion, much more coherent with a SHRM approach to key people. At the end of the paper will be stated the premises for the construction of an incentive system based on the categorization of workers based on individual characters and on typicality of their motivational profile.

Reward system and employee motivation in knowledge intensive firms. The case of the medical sales representative for pharmaceutical firms / V. Cavaliere; D. Sarti. - ELETTRONICO. - (2007), pp. 1-19. (Intervento presentato al convegno 1st European Reward Management Conference (RMC 2007), EIASM tenutosi a Brussels nel 2007).

Reward system and employee motivation in knowledge intensive firms. The case of the medical sales representative for pharmaceutical firms

CAVALIERE, VINCENZO
;
SARTI, DARIA
2007

Abstract

The aim of the present paper is to study the reward system for key roles in firms with high added value, high qualification employees and high research investments. Specifically, the main objective of this study is to analyze the logic that guides and governs reward system in relation to motivational processes of individuals. In order to investigate empirically this topic, the paper analyses the compensation system applied for the role of medical sales representative (MSR) in the pharmaceutical industry and his/her motivation profile. Pharmaceutical firms are organizations in which technology is a critical variable in the pursuit of the competitive advantage. The features which distinguish these firms are the high impact of personnel and R&D expenses, the high technical sophistication of products and the presence of rules governing the development, production, distribution and marketing of the product that are more restrictive than other sectors. The success of pharmaceutical firms seem to be based on two main levers, which are: research for product innovation and the management of the relationship with the “client”. Considering the second lever of the pharmaceutical firm success and the difficulty in the use of traditional operational marketing, medical sales representatives play an important role due to their position of ‘cornerstone’ in the relationship between the firm and the market. Starting from reflections made in previous studies, this paper considers that the effectiveness of incentives systems depends on the perception of individuals and therefore, the effectiveness of incentives is determined by the characterization (intrinsic or extrinsic) of motivational push to work. In our consideration, strategic incentive processes should deny the “mechanicistic” logic oriented to the search for and apply of the most effective incentive able to produce a behaviour which is requested by the organization. Rather, strategic incentive processes should look at the perception of the individual with regard to incentives as perceived by the individual and therefore mediated by motivations. In this sense, in our empirical work we adopt the idea of categorization of groups of individuals belonging to the same profession according to their motivational push and we analyse, then, their preference in terms of incentives. The empirical analysis presents the results of an investigation based on of 5 pharmaceutical firms operating in Tuscany (Italy). In order to create prior evidences for the construction of an interpretative framework, a questionnaire was given to a sample of 41 medical sales representatives working for the five firms investigated. The questionnaire measured the extrinsic rewards, intrinsic rewards and motivation profile of the job holder. In the approach here adopted self-reported scores evaluations which are accepted, on the basis of previous researches, as suitable proxies. The extrinsic rewards derive from factors associated with the job context. This include financial payments, working conditions and managerial behaviour. Intrinsic rewards than refer to ‘psychological enjoyment’. These rewards derive form factors inherent in the way in which the work is designed that is the job content. Furthermore, the motivation profile of the job holders was build based on the measurement of a 9 factors motivation profile questionnaire. Through a statistical analysis we first identified motivational profiles and than relate them to perception in terms of incentives. A further reflection was made on the policy actually used by the firms for the different motivational profiles. In conclusion, the paper will define an interpretative framework for managing key positions in ‘people intensive firms’ through the ‘lever’ of the rewards systems, by considering a new methodological approach which seems, in our opinion, much more coherent with a SHRM approach to key people. At the end of the paper will be stated the premises for the construction of an incentive system based on the categorization of workers based on individual characters and on typicality of their motivational profile.
2007
1st European Reward Management Conference
1st European Reward Management Conference (RMC 2007), EIASM
Brussels
2007
V. Cavaliere; D. Sarti
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Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/337523
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