Rob Parson at Morgan Stanley
analysis Submitted for
Human Resource Management (HRM 5003)
ARUN. R – 17F705
KOSHICA OBEROI – 17F715
MAYANK AGRAWAL- 17F718
SHIVA SRIVATAVA – 17F733
KARTHIKEYAN VVR – 17H106
SOUMYA KHANDURI – 17H112
Under the Guidance of
To address the issue of
Rob Parson’s recommendation for promotion to Managing Director at Morgan
Stanley based on his significant contribution in building Morgan Stanley’s
reputation and revenues and his continuously poor performance evaluation and
also taking into consideration whether or not he would stay if not promoted.
SWOT LISTING: ROB PARSON
Star performer with unique selling
Good decision maker
Excellent client relationship
Excellent market and product
Highly committed and hard worker
Cooperative and helpful
Impatient and difficult to adjust
Lack of Management and interpersonal
Too judgemental and rushes to a
Lacks team player skills
Volatile personality: Reacts too
quickly and impulsively
If management, interpersonal and
leadership skills are improved, Rob can get promoted to managing director’s
Not aligned with “One Firm Firm”
vision of Morgan Stanley
Negative performance review may
hinder his chances of getting promotion
He has created a hostile work
environment around him with disgruntled syndicate guys and traders.
SWOT LISTING: MORGAN
Leading U.S Investment bank since
Strong work culture and hierarchy
Low market share in financial
Capital market business was low
Capital market business, if
resurrected, had high potential.
Important investment banking
clients already present, who can be better utilized.
Other firms were capitalizing in
financial services and capital markets sector
Financial industry clients moved at
a rapid pace and were very demanding and competitive
The colleagues in the
organization had animosity for Rob Parson, since they feel-
Ø He doesn’t give time to build consensus
Ø He assumes he is more knowledgeable than his fellow colleagues
Ø He was criticized for lack of team player skills.
Ø They accuse him of creating a hostile environment around
him as – “volatile” and “abrasive”.
Nasr received frequent
complaints of him
Traders and syndicate
members are not satisfied with his knowledge of markets
Detailed Analysis of the
The Capital Markets
Services (CMS) division at Morgan Stanley, required professionals who had
industry knowledge as well as skilled at responding to client needs. It was
these requirements that lead to appointment of Rob Parson, a managing director
at a smaller firm, as market coverage professional.
The nature of Rob’s
responsibilities involved resurrecting Morgan Stanley’s capital markets
business. His tasks were difficult to perform with various obstacles like
understaffing, dramatic turnover in trading coverage and very low coverage. Rob Parson, despite unconventional education,
has been acknowledged for his ability to interface with clients and sell
products effectively. In financial
services sector, Morgan Stanley’s market share jumped from 2% to 12.2% due to
the exceptional work by Parson in obtaining substantial revenues from new and
But all this came at the
cost of company culture and vision of its senior management of an environment
that promotes teamwork and emphasizes respect and dignity of its employee.
With his 360-degree
feedback indicating dissatisfaction over the level of professionalism he
displays, his lack of interpersonal and managerial skills and concerns over the
nature of his volatile personality, a decision regarding his promotion needs to
This evaluates the possibility of Rob Parson’s promotion and the repercussions
that will accompany the verdict.
Impact of a particular course of action on company’s revenue.
Impact of a course of action on Morgan Stanley’s customers and their
interaction with CMS division.
Impact on other employees and the precedent that the action sets in the
Recommend Rob Parson for promotion
after recommending Parson for promotion, evaluation and development summary
will be valued by a promotions committee. The senior directors will likely
reject the recommendation based on the assessment summary and continued
Parson’s recommendation is rejected, there is the risk that he may exit the
company given his personal managerial ambitions. This will be detrimental to
both revenue as well as customer relationship.
recommendation for promotion will set a wrong precedent that attracting
business at the cost of company culture was acceptable
Defer the recommendation for promotion and
provide him incentives for his performance
Parson can be clearly informed of his areas of improvement, which once improved
upon, he can be recommended for promotion in the following year.
providing incentive and recognition for his promotion along with the feedback
on his areas of improvement, Rob might get the belief that if he improves his
areas of weakness informed to him, he will make it to senior manager position
If Rob Parson
is recommended by Paul Nasr, for the promotion, he has high chances of being
rejected by promotions committee. It would be better if his promotion is
deferred for one year, wherein he is personally advised about his weakness and
the cultural parity, which he should try to overcome. Since he is a star-performer,
losing him would be a huge loss to the firm. Performance based incentives can
be provided to keep the morale up.