360° Performance Evaluation at Morgan Stanley

2107 Words Mar 15th, 2011 9 Pages
Case Write-up

* Case: 360° Performance Evaluation at Morgan Stanley
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Vision Statement: “Connecting people, ideas and capital, we will be our clients’ first choice for achieving their financial aspirations.”
This vision draws on essential skills in connecting the brightest people with the most powerful ideas and the capital to help clients succeed on their own terms. (Letter to Shareholders)
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Strategic Goals | Needed Capabilities | Culture & Values | 1. Increase revenues +10% 2. Maintain a strong Return on Equity (+15%) 3. Diversify source of earnings: Increase Market Share in Derivatives, Global Investments
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These key directions are well stated as the strategic goals, but not implied enough on the evaluation criteria. Thus, employees would be less motivated to focus on most of its strategic goals.
b. Validity and Reliability * Validity * Basically, 360 degree system collects well-rounded feedback from peers, reporting staff, coworkers, and supervisors. This system can be a definite improvement over feedback from a single individual. This fact enhances the validity of evaluation because more people provide feedback, provide more detailed information, and have the flexibility to report on the performance of both individuals and teams. This makes the information more useful for both career and personal development. Moreover, it gathers performance data based on behaviors that he or she has shown to other employees. * Reliability * Based on the information given in the case, Morgan-Stanley selected 360˚ Feedback system including numerical ratings on specific performance criteria as well as space for evaluators to provide comments and descriptive information. However, the feedback heavily relies on evaluator’s subjective comments and descriptive information, both damaging the reliability of the system. My rationale for this critique is that evaluators will answer differently and inaccurately, and more importantly that employees are usually afraid of telling weaknesses of others.

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