FIRMWIDE 360 DEGREE

PERFORMANCE EVALUATION
AT MORGAN STANLEY
ANUBHAV ANAND
KATYAYINI KESHARWANI
ASHESH MATHUR
SHAMBHAWI SINHA
ABOUT MORGAN STANLEY
• TIME :1993
• REVAMPED EVALUATION SYSTEM:360 DEGREE
• PROFESSIONAL EMPLOYEES :2000
• COST OF SYSTEM : 1.5 Mn $
• NEW CHIEF DEVELOPMENT OFFICER : TOM DELONG
WHY 360 DEGREE WAS NEEDED
• To know the blind and hidden area of development for employees –
JoHari window
• Blind and hidden area assessed by employees with whom regular
interaction
• To overcome issues with old system :
Verbal assessments in large group
Oral meetings lead to assessments
No individual feedback
Better decisions by seeing who are good / not good at self promotion
KEY ELEMENTS OF SYSTEM
• 360 Degree Feedback
• Self assessment
• Explicit evaluation criteria
• High quality data and Evaluation Director Managing process
360 DEGREE FEEDBACK
1. Identify regular interaction people and provide feedback for them
2. List of evaluators in ERF was reviewed and discussed
3. ERF submitted to office of development
4. Evaluation forms distributed to people listed on ERF
5. Collection of forms from evaluators
6. Processing of collected evaluation into Year –end data packet
SELF ASSESSMENT
Each professional did own assessment –
Why self assessment ?
• to reflect on their performance
• to incorporate perspective into evaluation
• To highlight private and public area – JoHari window
EXPLICIT EVALUATION CRITERIA
4 broad categories :
• Market /Professional Skills
• Management and Leadership
• Commercial Orientation
• Teamwork /One firm Contribution
Pros of explicit evaluation:
Performance criteria was rigorous as one moved up in hierarchy
Detailed and specific information of employees present with managers
Supervisor bias elimination
Evaluators could freely express themselves
HIGH QUALITY DATA AND
EVALUATION DIRECTOR MANAGING
PROCESS
• Office of development collected forms and combined into 10-20 page
doc –”book”
• Raw data – interpreted by evaluation Director
• Evaluation and development summary created
• Summary – Template for performance review discussion
• Problem with summary – complete disconnect between person’s self
perception and other’s self perception – blind and hidden areas of Jo
hari window
EFFECTIVENESS CHECK
Task – to assess effectiveness of 360 degree performance evaluation
system
• Problems:
Biggest problems - how to weight the criteria and the input from
different evaluators ?
Complete qualitative info not provided – grade inflation
How to achieve correctness of questionnaires
Comparison was thought to be real - leading to fighting for points
Compensation and development discussions separate
SOLUTION- Evaluation criteria
• 10 point scale rather than 5 point scale to be more specific
• Communicate to people – KRA, KPA,KPI after every project ends
• Evaluation criteria will be divided into categories, so they will be more suitable for different kind of jobs.
Categories:
 Personal skills - interpersonal relations, communication, flexibility, creativity, initiative and
commitment
 professional skills - job experience, knowledge and skills, training and transferring new knowledge
and skills,
 Teamwork skills -work participation (mentoring, coaching, job enlargement, job rotation),
evaluating others
 Organizational skills - sense of belonging to the organization
 Negative - absenteeism, investment returns on person.
Correctness of Questionnaires
• Simple and pointed questions – yes/no
• Prepare another test for the evaluated employees which will examine their abilities to carry out
duties. Questionnaire results can be compared with this type of survey
Giving Honest feedback to overcome grade inflation

• Evaluators must get training about how to provide constructive feedback.

• The supervisor must be capable of understanding the feedback for better
clarification
• Quarterly feedback should be given
• Supervisor must also know attitude of person receiving feedback – knower/
understander/thinker/learner
• Appeal process should be in place for less criticism for feedback
• Supervisors, HR staff, and other critical managers must assist the employee
to understand and develop action plans based upon the feedback
To avoid fighting for points
• Group Division :Individuals will not get exact numbers, but
based on numbers, evaluator will divide them into several
groups (excellent, good, satisfactory, unsatisfactory). This will
help to avoid comparisons across individuals. Employees will
only know on which level in each category they are
• BARS method of evaluation
Compensation and Development Discussions
• Defining SMART goals and obtain agreement on same
• Mentoring for career path
• Quarterly discussions instead of annual
• Compensation handbook to employee as soon as they change job
roles / enter organization