Rob Parson at Morgan Stanley 1. 360? Performance Evaluation System Overview 360 ? performance evaluation system is a multi source feedback model for evaluating the performance of the employees within a company. The main purpose of this system is to develop the employees, not to use it for the administrative purposes as promotion, firing, and compensation package. The feedback is received from the direct manager, customers, peers and subordinates. Also, the self-evaluation of the employee is taken into consideration. 2. A Critical Assessment of the Current Evaluation System
The system used within Morgan Stanley is a kind of 360 ? feedback, based only on behavioral data. Although it is recommended for development process, in this case it is used mainly for administrative purposes – promotion and compensation packages. If a performance system is intended to be used for administrative purposes, including promotion, the output data (management by objectives) should be used besides the behavior data. The dimensions of behaviors are not formally defined and not well understood by the company employees, even by the recently hired managers.
The company wants to change the culture through this performance appraisal system, but the design was not complete and not appropriate training was provided. In this 360 ? feedback implementation, the self-evaluation and customers feedback are not included, although Rob Parson has direct contact with them all the time. A relative assessment in not used, only absolute assessment. The relative one is useful in this case to compare internal potential candidates for the managing direct position.
Parsons Essay Example
The new line of business – Capital Markets Services – is a special type of business, which requires a special approach, with high priority activities, which require a fast action. The existing culture does not meet the demands for this type of business. The colleagues are not aware of the importance and characteristics of Rob’s activity and therefore they do not support him enough. 3. Assessment of Rob Parsons Performance 3. 1Business Objectives Achievement Strong revenue producer Increased dramatically the number of clients
Increase market share more then 6 times in one year Change the firm ranked position from 10 to 3. 3. 2Behavior Achievement Positive Ability to cross-sell, willingness to share information and make introductions, energetic approach, outstanding contributor, Very good client relationship skills Self-starter, well known in the industry, good reputation and image. Negative Created a hostile environment around him He always has the right answer, but he doesn’t know to save the face of his colleagues 4. Recommendations
We understand that one of the main objectives of the company is to change the culture through team work, cooperation, cross-selling and improving management skills. On the other hand, the company strategy includes the development of the Capital Markets Services line of business, which is very demanding and whose principal is Rob Parson. We suggest to improve the current performance management system through: The implementation of performance appraisal system including management by objectives to be used for administrative purposes The improving of the 360 ? erformance system by formal definition of behavioral dimensions, appropriate training for all employees, adding self-evaluation and customer feedback. The Morgan Stanley should provide for managers training programs as team-building and programs for the development of coaching and management skills. Socializing events should be organized across the company. The results of each department performances should be presented to all employees through special channels.
Regarding Rob Parson, we suggest to promote him to the managing director position, with the recommendation to improve his management and communication skills, to be less aggressive with the colleagues and also to explain them what are the challenges of his business and to ask for their support. If Rob will not be promoted there are big chances that he will leave the company. He wants this promotion because is part of his long term career goal and this will motivate him to improve himself and his team. If he will leave Morgan Stanley, the company can loose important clients and business opportunities.