ROB PARSON AT

MORGAN
STANLEY(A)
Group 2

HIMANSHU AGARWAL (P16002)

AYSWARIA C (P16010)
MANYAM VENKATA VAMSI (P16032)
VINAY NAIR (P16035)
TAMAL SAMANTA (P16048)

0
 Letter of Transmittal
To,
Mr. Paul Nasr
Senior Managing Director,
Capital Market Services,
Morgan Stanley.
Date: 30th July 1995
Subject: Recommendation on advocating Mr. Rob Parson for promotion
Dear Mr. Paul,
Please find appended below, a detailed evaluation of the recommendation of Mr. Rob Parson
to the position of managing director. The report analyses the potential consequences involved
with advocating the recommendation and rejection of the promotion and delaying the
promotion.
Thank you in advance.

Yours Sincerely,
Regina Phalange
Executive Assistant
 Executive Summary

Rob Parson was hired by Morgan Stanley in the Capital Market Services (CMS) division at
Morgan Stanley. With his market knowledge and working ability, Rob has contributed greatly
in increasing companys market share. But Rob failed to adhere to the cultural norms of
Morgan Stanley, which plays a critical part in the performance appraisal. Therefore it is
suggested not to recommend Rob for promotion at this point. Rob can be presented
performance incentive for his effort in business generation, along with a chance to improve
his interpersonal skills.

2
Table of Contents

Situational Analysis................................................................................................ 1
Problem Statement................................................................................................ 2
Options.................................................................................................................. 2
Criteria for Evaluation............................................................................................ 2
Evaluation of Options............................................................................................. 2
Recommendations................................................................................................. 3
Action Plan............................................................................................................. 3

3
Situational Analysis
Capital Market Services (CMS) at Morgan Stanley demands a high understanding of client
business and ability to design custom products. Professionals in CMS division should be able
responsible and accountable to their respective client base to generate business. Rob Parsons
innate characteristics along with comprehensive product knowledge lead to his success in
improving the Morgan Stanleys (MS) market share from 2% to 12.2% in a year. However
360-degree evaluation of Rob has shown negative aspect regarding his team working skills
and his treatment of peers. In the midst of Robs outstanding performance and negative
feedback on interpersonal skills, the recommendation of Robs promotion is being evaluated.

Robs lack of team skills and rude behavior towards his fellow employees was indirectly
informed to him in several instances.

Rob presents a strong case for his promotion by improving the rank of MS from tenth to third
by working in CMS division which is deemed to be very difficult. Rob is good at establishing
client relations and uncovering the customer needs with deep understanding. If Rob is
recommended and the group of senior managing directors (GSMD) accept his promotion,
Rob can attract more clients and bring more business. Also, Rob is aware of his deficiency in
interpersonal skills, and also the feedback specifies his improvement in the same. Promotion
can serve as a motivator to align himself with the MS culture. As a motivator, he can make
his team work with a high focus towards the consumers leading to the growth of business.

However, MS is a company which puts organization above all the individuals. Promoting
Rob can send a wrong a message across the organization as he doesnt fit well with
companys culture. Rob undermines the work done by his peers and this can demotivate his
team resulting in below par results. MS wants to transform itself into a One-Firm Firm with
the motto of teamwork and treating each other with dignity and respect. Organization culture
should percolate from top to bottom and having Rob as a manager can lead to deviation in the
culture. Rob doesnt attend morning meetings and shouts at his peers which can affect his
leadership.

Robs personality is a negative for him to get promotion as Managing Director. Rob defies the
MS mission statement of teamwork and treating each other with dignity and respect. If Rob is
recommended and the GSMD doesnt accept his promotion, MS can lose an employee who
played a major part in increasing their revenue by more than 500% in a span of one year.
Replacing him would be extremely difficult. As most of the CMS division clients have good
personal relationship with Rob, they might also switch the company along with him. Robs
relationship with clients helped MS to cross sell the products leading to expansion of other
divisions. Losing him can affect divisions other than CMS also. Not recommending Rob for
promotion to managing director position will also lead to similar situation.

1
An implicit promise to promote Rob in lieu of good performance was made with his offer.
Rob has the performance to be recommended for promotion but lacks the skills to manage
and lead as Managing Director properly. This can be identified from the poor ratings he
received in evaluation for management of people. Rob can be explained to wait for next year
for his promotion as to evaluate his development as a team player and improvement in
leadership skills. Rob can be recommended for incentives for his exemplary performance in
enhancing the MS revenue. Deferring the promotion sends the right message to the
company that employees have to adhere to the culture of the organization and also that
substantial importance is given to the performance of the employee. Also, the company will
not lose their star performer because of the behavioral issues, which can be improved with
time.

Problem Statement
Whether to recommend Rob for promotion?

Options
Recommend Rob for promotion
Do not recommend Rob for promotion
Do not recommend Rob for promotion, but recommend for incentive as per
performance

Criteria for Evaluation

Evaluation is done primarily based on two criteria:
Revenue This criterion evaluates the consequences on MS business
Organization culture This criterion evaluates the consequences on the morale of the
organization employees, which is considered to be of higher priority in the appraisal.

Evaluation of Options
Rob can be recommended for promotion:
Within a short span of one year, Rob had made a significant contribution in
establishing a first-time business relation with more than ten new clients as well as
securing deals with the present clients. In a highly competitive market, MS has
improved its market share from 2% to 12.2%, resulting in an improvement in ranking
from 10th to 2nd regarding market share within a year.
Rob manifests a very good rapport with his clients, which is important for companys
business as well as future profit.
Rob possesses extensive knowledge about the market scenario. If Rob is not
promoted, chances are there that he may leave the organization. That can affect not
only the growth prospect of the company but also the loss of many present clients
with whom Rob maintains a very good equation.
MS approached Rob, with an implicit promise of promotion. He is also not apprised
clearly of the issues which can create hindrance in the promotion process.
Rob performed very well as per the requirement, and it is not wrong from his side to
expect promotion.

2
Rob should not be recommended for promotion:
Rob has not shown competence in one of the four main judging areas considered for
evaluation: Teamwork/One Firm Contribution.
Recommending Rob for promotion can create ill-effect among the other employees
within the organization, and a similar situation may arise again in the future for
consideration.
Recommending Rob for promotion can indicate a credibility loss for the senior
management.

Rob can be recommended for an incentive, but not a promotion:

Rob has been a misfit in the cultural mix of MS, but he has performed exceptionally
well in the business management and should be rewarded for that.
Promotion should not be recommended as Rob is not fulfilling the required criteria. It
is the responsibility of the senior management to clarify the necessary conditions to
Rob for making himself eligible for promotion, rather than providing an implicit
promise of promotion.

Recommendations
It is recommended not to advocate Rob for a promotion, but definitely, reward him with an
incentive for the good work Rob has done in one year. And ask Rob to wait for another cycle
to align himself with MS culture which is very important for a person in managing directors
position.

Action Plan
The decision to defer Robs promotion should be conveyed to him personally and
explain the reasons explicitly.
Praise Rob for his excellent performance and explain that improving his leadership
and team working skills can certainly lead him to Managing Directors position.
Explain that company is not willing to lose a good performer and ready to help Rob to
improve the skills required for managing director position and align him with MS
culture.

(Word Count: 1178)