Self-Efficacy Beliefs and Sales Performance

Self-efficacy theory predicts that people will perform better when they believe they have the skills necessary for success. It also suggests, however, that believing in long-term rewards for success ("response-outcome expectations") does not correlate with adequate performance. This paper supports the generality of self-efficacy theory and provides evidence that self-efficacy beliefs predict insurance sales performance, whereas response-outcome expectations did not. A questionnaire was developed to measure self-efficacy beliefs and response-outcome expectations using 200 insurance sales representatives. Regression analyses were computed on a different sample of 97 insurance sales representatives using four separate dependent variables (calls-per-week; number of policies sold; sales revenue and a composite performance index on which actual sales commission was based). (1) These analyses established a correlation (but no causal relationship) between self-efficacy beliefs and sales performance. (2) The generality of self-efficacy theory in a business setting is suggested by the relationship between self-efficacy and objective measures of sales performance. (3) The relevance of these results, and the importance of integrating them into the practice of organizational behavior modification is discussed.