Organizational Behavior and Structure of Morgan Stanley

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  • Topic: Morgan Stanley, Morgan Stanley Smith Barney, Private Wealth Management
  • Pages : 6 (1562 words )
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  • Published : April 5, 2011
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Ⅰ. Introduction

Morgan Stanley is a global financial business firm serving a diversified group of corporations, governments, financial institutions, and individuals in 36 countries around the world, and sets its headquarter in New York City. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management. Morgan Stanley settled its Asia Pacific headquarters in Hong Kong in 1987 and its main business helps shape global views on China and the Asia Pacific region. The Morgan Stanley of Hong Kong provides services to clients in investment banking, real estate, private equity, equity and securities trading, derivatives, prime brokerage, private wealth management and investment management.

Starting a business in a foreign country will certainly cause many problems for the company, Morgan Stanley may have to deal with problems arise from culture differences. A well-designed organizational structure would help Morgan Stanley to be more efficient and to avoid interpersonal problems in the workplace. This report is a brief introduction and analysis of Morgan Stanley H.K.’s organizational structure. In the report, we present the organizational structure used in Morgan Stanley Hong Kong, and we analyze how this structure helps the company to avoid some individual behaviors that may harm the company.

Ⅱ.Organizational Structure of Morgan Stanley

Morgan Stanley splits its businesses into three core business units. They are Institutional Securities, Morgan Stanley Smith Barney and Asset Management. As a service firm, Morgan Stanley designs its organizational structure based on its different services. It build its organizational structure to become a boundaryless organization, which seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.

Institutional Securities, also can be divided into three main business, which are Investment Banking; Sales, Trading, Financing, and Market-Making Activities; and Others. This is the most profitable business segment of Morgan Stanley, and it also can be defined as the energy provider unit.

Morgan Stanley Smith Barney(MSSB), can be defined as a retail brokerage joint venture between Morgan Stanley and Citigroup, which is also recognized as one of the industry's premier global wealth management firms. Its main business can be defined as provideing different financial products and services to its specific clients.

Asset Management, provides global asset management products and services in equity, fixed income, alternative investments and private equity to institutional and retail clients through third-party retail distribution channels.

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1.1 organizational structure of Morgan Stanley

After the introduction of Morgan Stanley’s Organizational Flat Structure, we can easily find its organizational system settings by the business function base. Managers place each distinct business line or business in its own self-contained division and give divisional managers the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its services and market. And the information also can be shared with symmetry to avoid many bad phenomenon like misunderstanding, deferred and second-hand mistakes.

The Flat Hierarchy can shorten the time needed for the decisions and orders of upper-level managers to reach lower-level manager in the hierarchy. For example, if the problem happens in raising capital, there is no need for the lower-level manager to report the problem to its entire higher-level supervisors but just the special business supervisor of Investment Banking can deal with it. It is not only reducing the problem solving time, but also well for the decision making process for the specialized manger, the person who are the professional on its own part business.

As a service firm, the speed to deal with...
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