Rob Opportunities · If management, interpersonal and leadership

Rob Parson at Morgan Stanley

A case
analysis Submitted for
Human Resource Management (HRM 5003)

 

by

FAS: AI1

ARUN. R – 17F705

KOSHICA OBEROI – 17F715

MAYANK AGRAWAL- 17F718

SHIVA SRIVATAVA – 17F733

KARTHIKEYAN VVR – 17H106

SOUMYA KHANDURI – 17H112

 

Under the Guidance of

Prof.
Sushanta Kumar

T.A. PAI
MANAGEMENT INSTITUTE

MANIPAL, INDIA

 

 

Problem Statement

To address the issue of
Rob Parson’s recommendation for promotion to Managing Director at Morgan
Stanley based on his significant contribution in building Morgan Stanley’s
reputation and revenues and his continuously poor performance evaluation and
also taking into consideration whether or not he would stay if not promoted.

SWOT LISTING: ROB PARSON

Strengths
·        
Star performer with unique selling
skills
·        
Good decision maker
·        
Excellent client relationship
skills
·        
Excellent market and product
knowledge
·        
Highly committed and hard worker
·        
Cooperative and helpful
 

Weakness
·        
Impatient and difficult to adjust
·        
Lack of Management and interpersonal
skills
·        
Too judgemental and rushes to a
decision
·        
Lacks team player skills
·        
Volatile personality: Reacts too
quickly and impulsively

Opportunities
·        
If management, interpersonal and
leadership skills are improved, Rob can get promoted to managing director’s
position

Threats
·        
Not aligned with “One Firm Firm”
vision of Morgan Stanley
·        
Negative performance review may
hinder his chances of getting promotion
·        
He has created a hostile work
environment around him with disgruntled syndicate guys and traders.

 

SWOT LISTING: MORGAN
STANLEY

Strengths
·        
Leading U.S Investment bank since
inception
·        
Strong work culture and hierarchy

Weakness
·        
Low market share in financial
services sector
·        
Capital market business was low
 

Opportunities
·        
Capital market business, if
resurrected, had high potential.
·        
Important investment banking
clients already present, who can be better utilized.
 

Threats
·        
Other firms were capitalizing in
financial services and capital markets sector
·        
Financial industry clients moved at
a rapid pace and were very demanding and competitive

Symptoms

·        
The colleagues in the
organization had animosity for Rob Parson, since they feel-

Ø  He doesn’t give time to build consensus

Ø  He assumes he is more knowledgeable than his fellow colleagues

Ø  He was criticized for lack of team player skills.

Ø  They accuse him of creating a hostile environment around
him.

·        
Superiors described
him as – “volatile” and “abrasive”.

·        
Nasr received frequent
complaints of him

·        
Traders and syndicate
members are not satisfied with his knowledge of markets

Detailed Analysis of the
problem

The Capital Markets
Services (CMS) division at Morgan Stanley, required professionals who had
industry knowledge as well as skilled at responding to client needs. It was
these requirements that lead to appointment of Rob Parson, a managing director
at a smaller firm, as market coverage professional.

The nature of Rob’s
responsibilities involved resurrecting Morgan Stanley’s capital markets
business. His tasks were difficult to perform with various obstacles like
understaffing, dramatic turnover in trading coverage and very low coverage.  Rob Parson, despite unconventional education,
has been acknowledged for his ability to interface with clients and sell
products effectively.  In financial
services sector, Morgan Stanley’s market share jumped from 2% to 12.2% due to
the exceptional work by Parson in obtaining substantial revenues from new and
existing clients.

But all this came at the
cost of company culture and vision of its senior management of an environment
that promotes teamwork and emphasizes respect and dignity of its employee.

With his 360-degree
feedback indicating dissatisfaction over the level of professionalism he
displays, his lack of interpersonal and managerial skills and concerns over the
nature of his volatile personality, a decision regarding his promotion needs to
be taken.

Decision Criteria

·        
Promotion Decision:
This evaluates the possibility of Rob Parson’s promotion and the repercussions
that will accompany the verdict.

·        
Revenue:
Impact of a particular course of action on company’s revenue.

·        
Customer Relationship:
Impact of a course of action on Morgan Stanley’s customers and their
interaction with CMS division.

·        
Cultural:
Impact on other employees and the precedent that the action sets in the
organization.

 

Alternative Solutions

·        
Recommend Rob Parson for promotion

 

Ø  Even
after recommending Parson for promotion, evaluation and development summary
will be valued by a promotions committee. The senior directors will likely
reject the recommendation based on the assessment summary and continued
negative feedback.

Ø  If
Parson’s recommendation is rejected, there is the risk that he may exit the
company given his personal managerial ambitions. This will be detrimental to
both revenue as well as customer relationship.

Ø  Parson’s
recommendation for promotion will set a wrong precedent that attracting
business at the cost of company culture was acceptable

 

·        
Defer the recommendation for promotion and
provide him incentives for his performance

 

Ø  Rob
Parson can be clearly informed of his areas of improvement, which once improved
upon, he can be recommended for promotion in the following year.

Ø  By
providing incentive and recognition for his promotion along with the feedback
on his areas of improvement, Rob might get the belief that if he improves his
areas of weakness informed to him, he will make it to senior manager position
next time.

 

Recommendations

If Rob Parson
is recommended by Paul Nasr, for the promotion, he has high chances of being
rejected by promotions committee. It would be better if his promotion is
deferred for one year, wherein he is personally advised about his weakness and
the cultural parity, which he should try to overcome. Since he is a star-performer,
losing him would be a huge loss to the firm. Performance based incentives can
be provided to keep the morale up.