Methodology Performance Feedback - Essay Example

Methodology performance feedback In each and every organization management has to evaluate the performance of its employees which acts as a basis for employee development, their hiring and promotion, internal fillings and improvements in areas where they lack. This helps improve the company's productivity and provides employees with the clear view of how their performance has been and how have they contributed towards the organizational goals. Today, performance feedback takes many forms in different organizations such as a traditional way of managers letting their subordinates know where have they been lacking or where did they perform exceptionally well, self-appraisals are common nowadays, what is gaining popularity nowadays is the 360 degrees performance feedback system.

The case under consideration is that of Morgan Stanley, which is one of the largest investment banks in US. The firm was facing issues of conflicting goals amongst its various divisions such as corporate finance, merchant banking and mergers and acquisition etc. This problem of disunity occurred as the organization grew larger and larger and the divisions started to focus on the divisional performance and profitability rather than maximizing the targets for the firm itself. Thus, the new CEO John Mack faced the challenge of making Morgan Stanley a "one-firm firm".

Therefore, one of the foremost efforts made by John Mack was to unite the people under one umbrella; therefore he improved upon the performance feedback system at Morgan Stanley which until then employees considered as unimportant or of no use. Morgan Stanley was then revolutionizing to ensure its commitment to merit based performance and reward system; there fore whole of the performance measurement system was revamped and restructured. With the previous annual review system the employees were unsatisfied as it was not considered as developmental for the employees rather just a formality.

Later, the performance appraisal system was made more objective and fair with well defined criteria for measuring the performance on characteristics such as commercial orientation, management and responsibility dimensions, team work and collaboration was also made a part of the performance measure as this was the area where the organization lacked. The new system focused on cross divisional feedback, peer evaluation, supervisor and the subordinate evaluation and also the self appraisal of the individual.

The performance feedback system was designed as such that evaluators themselves were asked to recommend the people whom they thought know them better or have worked with them enough to evaluate their performance; once this was approved by the office of the development the performance appraisal forms were distributed to the persons evaluating the individual. After the evaluation the director would prepare the evaluation and development summary; this then acted as the basis for improvement in the performance, for promotion and also the compensation planning systems.

Later the success of the system was evaluated by surveying the employees and it revealed that now the process is more result oriented and helps the evaluatees to know what are the criteria they are rewarded on and ultimately whether they are contributing positively to the organization's overall goals or not. Some of them thought the process was tiresome but the results of the process were helpful. ReferencesBurton, Diane, Thomas DeLongas, and Katherine Lawrence. "Morgan Stanley: Becoming one firm firm.

"Burton, Diane. "Rob Parson at Morgan Stanley."Burton, Diane, Thomas DeLongas, "The firm wide 360 degrees performance evaluation process at Morgan Stanley."