Succession Planning performance and to review their progress and shortfalls.

performance and to review their progress and shortfalls. e) The preparation of the management resource inventory is the
final step in succession planning. Such an inventory contains details of personnel data, performance records, skills, potential
There is a considerable body of literature on succession planning. Walter Mahler (1973) wrote a book entitled "Executive
career goals, and the career paths of managerial personnel.
Continuity." It was the first book to completely explore the subject. In the 1970s, Mahler was instrumental in shaping the
General Electric succession process, which became the gold standard of corporate practice. Companies need to develop their Succession planning stages include being proactive about unforeseen departures, engaging stakeholders early in the process,
talent to compete in a global market. Top management is mainly responsible for the growth and survival of the organization. choosing employees thoughtfully based on skill and potential, and sharing frequent feedback throughout the implementation
To discharge such responsibilities, each organization needs to plan management succession. All organizations, no matter their of the development plan.
size, need succession planning. Management succession planning is the process of ensuring that capable managers are
Fundamentals of Succession Planning
available to fill vacant managerial posts. Succession planning is the process used to identify replacements for high-level
positions. It helps increase the availability of candidates prepared to fill critical roles when the senior leaders leave or retire. Most organizations found that they must rely on their employees as the only way to become stable in this competitive age.
Succession planning involves organizing leaders, managers, and protocols to ensure a smooth power transition and that the Organizations need to develop their employees' knowledge, skills, talents and capabilities. Many organizations use succession
new leadership is prepared for their new roles. planning to develop and maintain powerful leadership and other key employees to make sure that they address all the skills
and competencies required for the economic environment.
Three questions need to be answered: first, are there enough potential successors available-a supply of people coming through
who can take key roles in the longer term? Second, are they good enough? Third, do they have the right skills and competencies Succession planning is the process whereby an organization ensures that employees are recruited and developed to fill each
for the future? Succession planning can be seen in terms of identifying successors for key posts and then planning career key role within the company. In this process, managers ensure that they will never have a key role open for which another
moves and or development activities for these potential successors. It is a business strategy companies use to pass down employee is not prepared.
leadership roles to another employee or group of employees. It ensures that business continues to run smoothly and without
interruption after important people move on to new opportunities, retire, or pass away. The fundamentals of succession planning include support from the CEO, building a development mindset in the organization,
an approach that is not just top-to-bottom but also bottom-to-top and cross-functional, aligning the succession plan with the
Succession planning is done in different time frames to ensure the availability of the right managerial personnel at the right overall strategy of the company, ensuring data-driven decision-making, and assessing the performance culture on a regular
time in the right position for continuing organizational strength. Most organizations plan for immediate requirements that basis.
match their budgets and business plans. This short sightedness leads them to an alarming situation when they find a shortage
of managerial manpower to man different positions in the organization, resulting in organizational collapse. To avoid this, good To make succession planning effective, it must be integrated with other processes of talent management, including
organizations try to plan succession in three time frames: immediate, intermediate, and long-term. Succession planning performance management, training and development, compensation, and assessment; succession planning needs to be linked
enables organizations to identify talented employees and provide education to develop them for future higher levels and to competency management; it must be integrated with career development tools; and it is equally important to automate
broader responsibilities. Unfortunately, many companies still struggle with creating a formal process aimed at identifying, the succession planning process for greater efficiency and to minimize operational risk.
developing, and retaining high-potential people within the organization. Factors affecting succession planning
Elements of succession planning Most organizations have found that they must rely on their employees as the only way to become stable in this competitive
Succession planning is not about replacing an existing employee. The purpose is to prepare the organization and develop its age. Organizations need to develop their employees’ knowledge, skills, talents, and capabilities. Many organizations use
"bench strength" for future organizational requirements. Organizations should communicate to all employees that they are succession planning to develop and maintain powerful leadership and other key employees and to make sure that they address
always looking for talent, especially from within. Communicate that the organization is actively engaged with succession all the skills and competencies required for the economic environment (Butler, 2002). One of the human resource tools that
planning as a means to not only support business continuity but to invest in individuals' professional growth with the can help meet the current and future needs of organizations is succession planning. Succession planning is a helpful approach
organization. According to Jones (2020), there are a few elements managing a succession plan and these are: a) identifying to finding the appropriate people who are needed for leadership positions or other key positions in organizations.
key positions for which a succession plan is necessary, b) identifying the successor or successors, c) identifying job Osibanjo Omotayo Adewale (2011) developed a theoretical framework for succession planning. This framework consists of six
requirements, d) building competencies, e) assessing progress. variables, such as talent retention, turnover rate, career development, supervisor's support, organizational conflicts, and
It is essential that the organization that creates a succession plan and invests in the development of employees assess its nepotism. He explained the relationship among these variables regarding the survival of organizations. Sohu and Mirani (2020)
progress toward the intended outcome. It has been correctly observed that succession planning is about "what is next?" and conducted a study in Pakistan and found that there were three independent variables, such as coaching and mentoring,
not just "who is next?" There will be one set of competencies (i.e., knowledge, skills, and abilities) for each position. However, training and development, and performance management, that affected the effectiveness of one dependent variable,
in creating development plan to build the competencies of succession candidates to be ready for the intended future role, succession planning. Sherman (2010) asserts that a good number of factors must be considered when making a succession
there will be different development plans for each succession candidate (Shand, 2010). The organization may have more than plan. These factors are: supply of internal candidates; talent development; multiple candidates; retention; diversity; and a
one employee who has demonstrated the knowledge, skills, potential, and interest to develop to a level of additional team approach.
responsibility. The commitment to the process and abilities of the succession candidate are integral to identifying who to Shadi Ebrahimi Mehraban (2011) conducted a study in the private commercial banks in Iran and found a good number of
develop. factors that influence the successful implementation of succession planning. There are: training, management support,
Steps of Succession Planning clarifying the career path, creating a positive vision, a strong organizational culture, technology advancement, a flat
organizational structure, and the financial conditions. For example, a strong organizational culture that provides values, beliefs,
The succession planning process must look at building the competencies and skills for current and future organizational needs. standards, and paradigms for all employees also affects effective succession planning. Financial conditions affect the
Succession planning is not about replacing an existing employee. The purpose is to prepare the organization and develop its implementation of effective succession plans. For example, having enough budgets for human resources is one of the most
"bench strength" for future organizational requirements. There are five elements to managing a succession process important conditions for training people. For implementing a successful succession planning system, there a need lot of
Bhattacharyya (2008) states that succession planning involves a few steps, which are discussed below: a) The first step is to support from the managers.
prepare and develop a management staffing plan and plan for all anticipated needs in different time frames. b) The second
step is staffing and development. Staffing is concerned with recruitment, selection, and placement. Development of
managerial personnel is done through training, job rotation, projects and board assignments, performance appraisal,
counseling, and guidance. c) The third step is to ensure a congenial organizational environment to retain the desired
managerial personnel. d) The fourth step is to develop a good performance appraisal system to get feedback on managerial

Who is Involved in Succession Planning? HR leaders or senior leaders play a major role in making an organization's succession involved in business operations and is well respected years before the current CEO retires. Also, if investors observe a
plan. Management's commitment to succession planning means that supervisors will mentor employees to transfer knowledge well communicated succession plan, they won't sell the company's stock when the CEO retires.
and expertise. The HR department plays a crucial role in Succession planning. They advise managers to identify vulnerable Key Steps in the Succession Planning Process: Succession planning is a four-step process that HR managers use to
positions that may soon become vacant. Board members may also be involved in the succession planning activities for the top determine their organization's leadership needs now and in the coming years. It involves making a strategic leadership
positions, including CEOs, in a company. The role of those involved is to identify positions that may be at risk and then begin human resource plan, building long-term relationships with potential successors, and giving all key stakeholders a
the planning process to identify successors and possible skills gaps. In addition, those involved in succession planning need to sense of direction.
consider how these efforts will be communicated to the organization and its staff members, which can lead to one of the
Succession Planning Challenges
drawbacks of succession planning. Those involved in the succession planning process should craft their communication
messages carefully to focus on why certain positions are considered to be key, the skills and requirements necessary for those Successful succession planning builds bench strength. Thus, one of the benefits of succession planning is reduced risk
positions, and the process to be used in finding successors. associated with a loss of experienced leadership, Succession planning is also an office morale and engagement booster.
Grooming employees for their future roles by giving them more complex tasks and investing in their growth keeps them
Advantages of Succession planning
focused, motivated, and loyal to the company. Succession planning is important for any business focused, motivated, and am
The goal of succession planning is to ensure that a company is prepared for the future. To do so, organizations recruit new of capable and qualified staff members to move into key roles as they become vacant due to retirement or attrition. Lacking a
talent, or train internal candidates, who will eventually move into a leadership position once the current one leaves. successful plan is dangerous. Although succession planning offers several benefits, businesses need to be aware of the
drawbacks. When assessing the advantages and disadvantages of succession planning, it is crucial to take the disadvantages
Protection from Unexpected Situations: Effective corporate succession planning increases the availability of capable
seriously. The company must be prepared to manage its weaknesses to reap the full benefits of succession planning. Effective
individuals who are prepared to assume such roles as they become available. Succession planning is essential for
succession planning is a difficult task. John B. (1994) indicated that succession planning faces some challenges. These
keeping your organization moving in the right direction even when several key employees or staff quit, retire, or move
challenges fall into two categories: challenges with the process and challenges with the technology.
on for other reasons. Succession planning protects the company from the chaos of uncertainty when a leader is
expected to retire or suddenly resigns, is dismissed or experiences bad health. Succession planning should begin long a) Integration of succession planning with other HRM functions: Integrating succession planning with other processes
before the departure of leadership to ensure the company does not experience the pitfalls of a sudden leadership is the main challenge that companies are facing. Challenges with making the process work include the inability to
change. locate or create a pool of active and passive candidates and a lack of interest from senior executives.
Clarity and Direction: Succession planning is an important part of human resource planning. It helps eliminate b) Lack of assessment tools: A study indicated that it is difficult to make effective succession planning due to a lack of
confusion as to who will carry on the legacy of the business when you are no longer available to make decisions. assessment tools, succession planning tools, and career development tools (Amato, 2013). These concerns in
Effective succession planning brings advantages for both employers and employees. succession planning represent a broader challenge in human capital management, i.e.; getting the talent needed and
Enhanced Self-Esteem and Job Satisfaction: Employees who know that the next role awaits them receive a boost in addressing the talent requirements for the future.
self-esteem and self- respect. This enhances their efficacy and value as an employee. An employee can know the c) The high cost of poor succession planning: Many large companies fail to pay enough attention to their leadership
organization's plans for the next potential opportunity, and this will reinforce an employee's desire for career pipelines and succession practices. That leads to excessive turnover at the top and destroys a significant amount of
development and career opportunities. They know that there is a chance for advancement and possibly ownership, value-close to $1 trillion a year among the S&P 1500 alone (Nagel and Green, 2021). There is a high cost to poor
which could lead to more empowerment and higher job satisfaction. This development is one of the things that succession planning. The biggest costs are underperformance at companies that hire ill-suited external CEOs, the loss
employees want most from their employer. of intellectual capital in the C-suites of organizations that executives leave behind, and, for companies promoting from
Employee Self-Awareness and Development: An employee can identify the skills, experience, and development within, the lower performance of ill-prepared successors. The solution isn't that complicated: Firms need to start
opportunities necessary to help him become prepared for advancement when the next job opportunity turns up. The succession planning well before they think they need to; make sure they identify and develop rising stars; appoint the
employee's value is shared with the rest of the organization so that if an opportunity comes up, the managers can most promising executives to the board to help prepare them to take on the top job; and look at both internal and
consider the employee to fill the role. external candidates.
Enhances Organizational Performance: Employers benefit from succession planning as well. An employer can rely on d) Data management and analysis: One of the disadvantages of succession planning is data management. Companies
staff to carry out the mission and the vision and accomplish the goals of the organization. The loss of a key employee must prepare to assess all data to ensure they identify the best individuals for the job, adequately prepare successors,
can undermine an employer's ability to accomplish these important objectives. The employer needs to prepare and assuage any concerns others may have about the transition of power.
employees to step into roles as the company grows and expands its offerings and services. Effective, proactive e) Top management support: Another challenge with succession planning includes a lack of support from top
succession planning leaves your organization well prepared for all contingencies. management. Succession planning needs to be aligned with the business objectives of the company. CEO and other
Strengthens Leadership Bench: Successful succession planning builds bench strength. Thus, one of the benefits of senior management involvement is a critical step. Succession planning will not become a companywide initiative if the
succession planning is reduced risk associated with a loss of experienced leadership. management is not involved and plays an active role in ensuring a more cohesive succession.
Boosts Morale and Engagement: Succession planning is also an office morale and engagement booster. Grooming f) Marinating employee morale: One of the side-effects of succession is the negative impact it can have on company
employees for their future roles by giving them more complex tasks and investing in their growth keeps them focused, morale. Deep down, everyone worries about retirement, or redundancy. And the taboo of talking about moving on in
motivated, and loyal to the company. one way or another can impede open discussion and threaten the importance placed on succession planning in
Proactive Approach: A formal succession planning process is a proactive approach to filling a top position. It helps HR organisations. To be effective succession planning needs to be a simple, open process. Every organisation should
professionals anticipate problems in the process before they get started. It fosters cross-functional development and openly discuss who's taking the reins next.
facilitates the integration of HR planning components, processes, and procedures. This is very important to avoid g) Indecision who to promote: It is difficult to decide whom to promote when the number of qualified people exceeds
negative and dysfunctional situations. the requirement. But with careful planning, it is possible to put the right person in the role without upsetting your
Reduces Costs: Effective succession planning activities have a positive effect on performance management, not only other candidates Identifying potential candidates early in the succession planning process and proactively arranging
because they make sure that key positions are filled with competent workers, but also because they save money on appropriate learning and development courses is one possible solution to this painful problem.
hiring and training people from the outside, which can be much more expensive than promoting from within. h) Lack of trust: Lack of trust is a great challenge. Trust is one of the challenges of succession planning for sensitive roles
Improves Strategic Planning: An important benefit of strategic succession planning is identifying in advance where like the CEO. The CEO may not always trust others to run the business as they do. With this belief, paranoia will set in
there may be gaps between what employees need to know and what they currently know. The gaps may be based on and make it difficult for the CEO to take steps toward planning for succession. Leaders need to accept the fact that
current needs for key positions and the lack of employees with the required skills, as well as on a look into the future. someone will do a great job when it's time to take charge. Giving control to a competent and worthy heir can and
Proper succession planning benefits shareholders of public companies, especially when the next candidate for CEO is should be very freeing. A leader may find it challenging to completely commit to the idea of succession if there isn't a
 culture of trust and confidence in the organization. It becomes impossible to retain anyone who appears even Book Question solve
marginally capable of doing so when someone is convinced that no one can step into their shoes.
Can you suggest some ways of making human resource planning more effective?  To make human resource planning
i) Understating the successor: A leader may sometimes fail to give a potential successor the resources and support
more effective, you can: align HR strategies with business goals, conduct regular workforce analysis, utilize gap analysis to
needed to do well in the role. A controlling, insensitive, or cynical leader can hurt a newcomer's morale, making it
identify skill gaps, implement robust succession planning, foster employee development through training programs,
much harder for them to prepare for the job. After proving their worth, a candidate should be given the freedom to
leverage data analytics, actively engage leadership in the process, and regularly review and adapt plans based on changing
carve out their own path towards established corporate goals, instead of being put in a restrictive box that stunts their
business needs; all while ensuring open communication and collaboration across departments.
growth and sets them up to fail.
j) Choosing the wrong successors: Sometimes, succession is hampered by bad selection. An insecure leader might Where does employee retention fit with HRP?  Employee retention is a key component of Human Resource Planning
choose a safe, unthreatening, and therefore less-qualified successor. A leader might make the wrong pick due to (HRP), as it is considered a critical factor in ensuring an organization has the necessary workforce to meet its future needs
disengagement from the succession planning process. The right hire will come with the skills and talents needed to lift by proactively keeping valuable employees from leaving, thus minimizing recruitment and training costs associated with
up the whole organisation and keep their predecessor's legacy alive. high turnover.
k) Resisting Bias: The temptation to hire someone who fits a certain stereotype can override logical, skill-based thought
processes. Leaders tend to search for successors who resemble themselves. Men tend to pick men; women tend to What would happen in absence of HRP?  Without Human Resource Planning (HRP), a company would likely face
choose women; scientists tend to pick scientists; and so forth. The problem with the "like me" bias is that you might significant challenges like difficulty predicting future workforce needs, inability to adapt to changing market demands,
overlook the talent your business needs because certain people do not fit your mold. Planning ahead to identify potential overstaffing or understaffing issues, lack of skilled employees due to poor recruitment strategies, and a general
characteristics required for a successor will ensure the candidate with skills best suited to the job (beyond their age, inability to effectively manage employee development and career progression, potentially hindering overall business
gender, and background) will be hired. Write up a description of the characteristics and skills a person would need to growth and performance.
fill the position effectively. Then search for candidates based on their attributes. You might be surprised by which Are there any best practices for succession planning? 
candidates rise to the top (Walsh, 2021).
l) Excessive reliance on outside sources: Large companies' excessive tendency to hire leaders from outside is one of the
biggest problems with succession practices. They do not develop good successors within the organization. Another
negative by-product of poor succession planning and excessive outside hiring is rising CEO compensation as companies
compete for the same top executives. Maintaining company morale is difficult. One of the side effects of succession is
the negative impact it can have on company morale.
m) Inadequate budget: Without clarity on the best way forward, organizations are likely more hesitant to funnel
resources into succession planning and this is one potential barrier preventing organizations from reaching their true
potential. Many organizations do not have the budget to develop qualified human resources. Inadequate training and
development will result in employees who are not ready for a promotion.
n) Family considerations: Succession in family businesses takes the form of transfer from one generation to another, but
succession planning appears to be left to chance by many firms. This neglect of succession planning and the emotions
generated by the process make owners ill-prepared for succession (Frishkoff, 1994). Most family businesses do not
survive to the third generation. A well- designed succession plan can help avoid this fate. In a family-owned company,
succession can be particularly problematic because business mixes with family dynamics. Due to the relationships and
feelings involved, succession planning in family companies may be particularly difficult. This difficulty is increased by
the fact that most individuals are uncomfortable talking about matters like aging, mortality, and their financial affairs,
even with their immediate family. Family members should be given the opportunity to learn about the company and
decide if they want to be a part of it while in turn being evaluated for leadership potential. There are also other
considerations, such as tax planning and equity transfer between generations.
o) Team Approach: No executive should be fully responsible for choosing a replacement (Sherman, 2022). A succession
plan is a project for the firm and its board of directors, not for a specific individual. You don't want to hire a carbon
copy of a departing executive, so be aware of the precise skill set, knowledge base, and traits you're seeking (these
may be different or similar to the individual who's leaving).
p) Poorly conducted succession planning: A poorly conducted succession planning process will lead to poor decisions,
disharmony, and ultimately poor company performance as well (Minto, 2021). Making poor decisions is never a good
practice, and this will happen if proper thought, time, and consideration are not applied.
q) Unawareness of personality factors: These and other challenges must be addressed so that a company has a
successful transition of leadership. Failing to do so may mean the failure of the business. Many of the issues in
succession planning mentioned here can be linked to the leader's personality features. A stable, agreeable leader will
allow things to move forward smoothly, whereas deep fear, pride, and mistrust can sabotage the peaceful transfer of
power, hurting an entire workforce from the top down. This is why development and insight are crucial for leaders.
Executives who "know themselves" and are enlightened about how they may be derailing succession plans can choose
better behaviors for the good of their colleagues and their own legacies. We all have room for improvement in our
self-awareness. When leaders take honest inventory of their own personalities, they're more able to secure a graceful
retirement, create succession plans in the best interest of their organizations, and cultivate the talent that's most
worthy of assuming the helm.

…
 …

….

…….

….

……….

………