Marshall & Gordon

1030 Words Apr 17th, 2013 5 Pages
HUMAN RESOURCE MANAGEMENT
Assignment 2

Marshall & Gordon:
Designing an Effective Compensation System





Situational Analysis

Paul Nasr is the president of Morgan Stanley (MG) who has nearly 20 years of experience in the capital markets business. He assumed the leadership of the newly created Capital Markets Services division.

The Capital Markets division is an interdisciplinary entity created to serve as a link between the Investment Banking division and the sales and trading arms of the firm, Equity and Fixed Income. The division is created to provide the clients with more focused attention and service. The employees in this division were also expected to generate business from organizations that were not previously
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During the performance evaluation before his supposed promotion to the managing director or partner of the firm, Parson is credited for his good marketing skills, knowledge of the market and product, aggressiveness in making the deals with clients, his ability to cross-sell products to the clients. But he also got some very negative comments for being judgmental, not being a team player, not being professional at times. Nasr, though, defended that Parson is still young in MG and needed time to align himself with the firm’s values.

Problem Definition

Nasr is staring down the barrel on whether to promote Parson as a Managing Director/Partner of the firm or give him more time. He also did not want to lose Parson who might leave the firm if he did not get the promotion.

Options

Nasr has three ways of coming out of this quagmire:
a. Promote Parson and assume that he will get better with time.
b. Hold his promotion till the next evaluation and give him a chance to overcome his shortcomings.
c. Terminate his employment because his work doesn’t align with the firm’s core values.

Evaluation Criteria:

The following criteria should be used to evaluate the options available to make a fair decision:
a. The employee should be result-oriented
b. He should have good interpersonal skills
c. He should…