MM5002 People in Organization29111311 29111328 29111329 29111338 29111344 29111384 29111387 29111393 Haidir Afesina Hendra Winata Mita Listyatri Andek Prabowo Aprian Eka Rahadi Chairunnisa Mirhelina Franciscus Xaverius Kresna Paska Agung Indri Pramantyo Rob Parson at Morgan Stanley (A) Outline Strategic Leadershi p Problem People Factor HR Analysis Recomme ndation HR Practices Fact “Morgan Stanley held The 3rd rank position with A market share of 12.2%” Problem Paul Nasr promised the PROMOTION when recruited Rob Parson to Morgan Stanley Rob Parson had GENERATED substantial revenues since joining the firm However, Rob Parson has INTERPERSONAL PROBLEMS in working with PEOPLE INSIDE the firm DECISION MAKING to Promote as Managing Director Performance Organization Division Company Culture Decision Do not fit the culture i.e. teamwork Rob Parson WIL NOT GET PROMOTION Attitude No guarantee he will change The position is crucial i.e. standard bearers to junior Strong business acumen “securing major deals and generating revenues for his desk” Rob Parson WILL STAY at the company Strong relationship with clients “..people look forward to having meals with him” In condition not to report to Paul Nasr “..group felt that I was his protector” Lesson Learn #1 “Morgan Stanley, hierarchical, was attempted to transform its work environtment that fosters teamwork and innovation by putting people as competitive advantage” Strategic Leadership Financial Industry Complex, fast paced, the most demanding client and global industry Vision ONE FIRM Mission The world`s best investment bank and the firm of choice for our clients, our people and our shareholders Values Strategy To provide a unified face to the customers and also to have mechanism in place to effectively coordinate work across the firm Operating Goals & Metrics Strategic Leaders Consensus and Up or out Promotion system in a hierarchy as standard bearers for all junior staff Exceptional service Integrity Dignity Respect Market Share People Factor Paul Nasr Hired by John Mack to shake up the culture Rob Parson Hired by Paul Nasr as a principal Young banker with proven track record Strong relationship with important players in the industry Low adaptation to organization culture Gary Stuart Senior Market Coverage Professional Very good understanding of market and customer relation Think that interdependent with other professional in firm is very important John Mack The president in 1993 Transform the firm into “one-firm” 360 degree performance appraisal Highly regarded banker Leadership role “…the culture is important…” Lesson Learn #2 “Morgan Stanley use 360 degree performance appraisal that delivers employee`s job measurement by combine information from managers, peers, subordinates, self and customers” Analysis Goals Nasr said “…it takes more than traditional corporate banker to get this job done” Stuart said “He makes things happen that wouldn`t otherwise happen” 360 Degree comments “A self starter who is unusually aggressive in pursuing the business” “He has made a big difference with several clients” Hierarchy PAUL NASR PROBLEMS Hire reactively in order to develop presence in the market “I handled him with kid gloves” “..give him time. He doesn't’t know the Morgan Stanley system yet.” LEADERSHIP GAPS Nasr said “…in the meantime he broken every following rule within Morgan Stanley to get there” Rob Parson said “What`s the problem? What did I do wrong?” 360 Degree comments “Lack of team player skills” “Lack of team player skill” “…are not happy with him basically questioning their prices….are not happy with him questioning their knowledge of the markets” Lesson Learn #3 “ A star from previous company, when joining new company, not only has to understand the products but also The people, processes, platform, and politics that delivers collaborations and delegation of organization culture HR Practices How to say to Rob Parson? What Acknowledge the positive Provide the negative Talk about the future How Say “it`s company decision that he would not get the promotion” Say “As supervisor I didn`t do good job orienting and developing Rob to fit the culture” Say “What can we do together to improve in the future?” Where Make it informal, to create a dialog in a relax place to get Rob Parson to talk (discussion). Preferably outside the company e.g cafe Recommendations • Hire Strategically not reactively • • • • Developed the company stars to create the sustainable competitive advantage i.e. Mapping and create the program Compensation for stars i.e. Compensation based performance On board deep orientation i.e. Emphasized the important of the organization culture and goals since the 1st day to every new employee Performance feedback to every employees i.e. Unfortunately, the people who typically receive the least attention from their boss are the average performers. However, they are the ones who could probably benefit from it the most Exhibit 3 – E&D Summary Form(1) Evaluation and Development Summary Evaluatee: Parson, Robert,L Title : Principal Div/Dept : IBD/Capital Market Evaluation Director: Nasr, Paul A Signature : Date : Review of Performance Performance Summary, including accomplishment -Has almost good in Professional Skills and Commercial Orientation. - Average on Management Skills - Low on One Firm Contribution, especially in Team Player Skills with downward Evaluation THEMES Strengths 1. Professional Skills 2. Commercial Orientation Comments Mostly very high rating of this item Need development on Adherence to firm policies Exhibit 3 – E&D Summary Form(2) Evaluation and Development Summary Evaluatee: Parson, Robert,L EVALUATION THEMES Development Area 1. One Firm contribution 2. Management Skills Comments Low Team Player Skills Low leadership & management of people, evaluation, development and coaching, management of diverse workforce Evaluation Director: Nasr, Paul A PERFORMANCE OBJECTIVE FOR NEXT YEAR: Business Goals : increase market share and got the second rank position Professional Development Goals : Develop the team player sense and absorb the culture of Morgan Stanley CAREER GOALS -Short term : Principal while development low item of his performance rating as define in development Area above