Developing and Managing Others
Learning how to attract and retain the best people
Part A. Morgan Stanley Case 3
My assessment of the new performance evaluation process 3
Did the new system meet expectations and targets? 4
Critical factors that contributed to the successful implementation of the system at Morgan Stanley 5
Part B. My personal development plan 5
Part C. Two people management examples using the SARL form 9
First example 9
Second example 10
Part A. Morgan Stanley Case
Morgan Stanley is an American multinational financial services corporation. The corporation, formed by partners Henry S. Morgan, Harold Stanley and ...view middle of the document...
Below are the advantages of the new process.
* It was implemented at the right time. The old performance appraisal system was formal, not systematic, and biased; no hard copies of assessment results were kept and no individual feedback was provided to an employee who was being assessed. That’s why the system was not effective. It couldn’t determine which areas of knowledge and skills of an individual employee, a team, and the whole company needed to be improved. It no longer met the company’s new needs and goals.
* The new process is a part of the overhaul strategy. Evaluation is performed on a regular basis and it involves a bigger number of participants (a director, colleague, subordinate, and client) who provide feedback and details about each employee and the team in general.
* An employee assesses him/herself.
* There are four clearly defined evaluation criteria.
* Forms that must be filled in are open-ended and have sections with specific questions for each criterion.
* All assessment data regarding each employee is consolidated in a separate document.
* Feedback is provided to an employee who is being assessed.
* More objective, honest, and open results.
On the other hand, the process has several disadvantages.
* The new process is long and complex.
* It’s characterized by a high probability of errors because clear and consistent summaries are required to assess comments.
* Neither appraisers, nor employees being appraised underwent relevant training.
* The system is based on digital assessment, which makes it difficult to compare two employees whose results differ by a small margin.
* Problems with providing fair assessment. Employees are not always ready to evaluate fairly weaknesses of an employee under assessment.
* Feedback was provided once a year when decisions about annual bonuses and promotions had already been made.
* Some employees believe that the new system “captures so many soft qualities that don’t really matter.”
Did the new system meet expectations and targets?
The goal of the new performance evaluation process was to implement the company’s new strategy based on new values and mission. Hence, it was important to introduce a new structured professional development system and make the evaluation process more independent, transparent, easy to understand, honest, and open. Another goal was to give managers tools to create an atmosphere of trust and have “career-related conversations” with their subordinates. Finally, the company had to ensure individual feedback on assessment results, promote professional development and team work, and explain decisions on promotions and bonuses.
It was impossible to combine two absolutely different processes: evaluation system and professional development. Thus, the implemented process focuses on the annual 360 assessment of the personnel. The company reached its goal: it managed to make the assessment a mandatory,...