Morgan Stanley Case Study

1.What ate the advantages and disadvantages of the 360 feedback system at Morgan Stanley?

Although there isn’t any perfect feedback instrument or process, experience shows that “360” feedback process comes pretty close to perfection, if it is well planned and executed.

“360” feedback is a process where employees or managers receive information about their performance from peers, superiors and subordinates. It can be said to be a wide picture of the impact one has on those it interacts with on a frequent basis. This kind of process helps to identify strengths and weaknesses, allowing for improvement and enhancement at a personal and professional level.

Its importance is attached to the fact that a “360” feedback (by providing a rounded view on strengths and needs to development) allows to:

Understand the perception of others about our performance

Improve working relations and personal effectiveness

Identify important personal areas to develop

Help with career development planning

This occurs because, and only if, the feedback is relevant, clear and structured, accurate and credible, focused and actionable.

Advantages of the “360” feedback:

A higher integration of all employees in the organization: workers feel more important, key elements to the success of the organization, as it also improves communication and respect among all employees – in a higher or lower position.

By providing evaluators with anonymous information, the likelihood of this information and feedback to be more accurate and true is higher than the one gathered in a non-anonymous way.

Since it is impossible for the supervisor to fully know and control all relations and performances, this kind of appraisal more than don’t expect the supervisor to be the only one observing, allows for a complete and wider feedback to be made.

Relating to this, the opportunity for all those people with whom a person comes into frequent contact to give feedback makes it more accurate and credible.

“360” feedback, by gathering information from several different sources, makes it harder for some one to brush aside constructive criticism, since it is impossible to state that he/she is being pursued by the evaluator.

This process is designed having the costumer in mind, being this an external or internal costumer. For this to be an advantage, it is important for the employees to understand themselves as both costumers and suppliers inside the organization – from this kind of relation arise rights and duties for both parts.

The above point, when clearly understood, improves the overall performance of the company, since employees get more attentive and responsible when dealing with someone else’s interests and needs. From this behaviour it is most likely that the company might improve and look good, rather than having its employees only focusing on their own objectives.

Morgan Stanley is a community oriented organization that puts individuals as a group in front of individual success. For this the company stands for values such as integrity, loyalty and sense of belonging in all processes, as quoted in the text: “This commitment to add maximum value will be characterized by extraordinary effort and innovation, and by conducting ourselves with absolute integrity.”

The use of the “360” feedback process, is a continuation of this desire. People feel part of the company, as they feel their opinion and experiences are worth to the overall performance. Instead of being put aside in the career evolution process, employees feel part of it which can positively influence their performance in two ways: they feel that there are less injustices when it comes to career progress, as well as they feel it more possible for themselves to also progress (it’s like if they could touch the instrument and, therefore, by understanding it, feel themselves near to the promotion).

By