Morgan Stanley Case Study

Morgan Stanley Case Study

In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program.

Following are the features of an effective total rewards program that can help in motivating the sales force in order for them to produce the highest number of clients:

Never place the basic salary at risk

Put the basic salary in terms of risk means to ask employees to base their standards of living on the factors that are outside their direct area of influence. Instead, use the basic salary and bonuses as part of an overall strategy of compensation. Keep the basic salary at a competitive level and allow it to raise premiums to the highest level (Dineen, Ash, et al, 2002).

Tie bonuses to strategic objectives

Rewards should be tied to the overall strategic and tactical goals of the organization, which would in turn motivate the overall employees of the organisation in order to work towards achieving the overall (Dineen, Ash, et al, 2002).

Use the "Balanced Scorecard" performance

The lack of many award programs is that they are unidirectional. Pretty quickly employees are to maximize the award from other parts of the organization. A well-designed system uses a set of indicators that balance growth and profits, quality and productivity. This approach makes the employee to take into account the effect of a decision on each of the indicators (Dineen, Ash, et al, 2002).

Determine the average benchmark for measuring performance

Unrealistic expectations inherent in the system of performance evaluation discredit it before use. Instead, set a reasonable value, providing the basic salary and the opportunity for performance bonuses (Ganzach, Pazy, et al, 2002).

Use the ideal goal

After determination of the initial values of parameters, set the ideal values - efficiency, maximizing the potential of an organization or department. Such targets encourage "out of the box" thinking and behavior. To maintain confidence in the system, break the gap between the base and the ideal value at the level of creating a progressive scale of rewards for each level of achievement (Ganzach, Pazy, et al, 2002).

Create interest on multiple levels

Reward employees at the organization level, department and individual. In well-designed bonus program tied to individual performance indicators of departments, which in turn - to the performance of the enterprise. This creates a "line of vision" for the employees - to understand how their daily activities affect the final result. It also focuses attention on the overall organizational success, teamwork, and not the opposition divisions (Ganzach, Pazy, et al, 2002).

Describe the behaviors of the sales force that are targeted with the compensation plan.

One of the most important means of control is a system of financial motivation. This feature is usually referred to as "wages". In modern management, it is compensation for employees and labor forces. This concept includes three components:

Wages.

Cash award for his contribution to the achievement of the organizational objectives and goals.

Allowances, benefits, etc (Backhaus, Stone, et al, 2002).

Compensation may have a dual impact on staff - motivating ...