Succession Planning

In: Business and Management

Submitted By andyray58
Words 1942
Pages 8
Succession Management

This year, Jim Pender, the President and CEO of Stonewall Industries, is set to retire after 40 years of service with the company. The executives from the new parent company, US Corp, have absolutely no idea who should replace Pender as President. All of the current VPs have various strengths and weaknesses and no one on the team seems to be viewed as the heir apparent. The internal candidates for the position would be VP Manufacturing, McBain; VP Mining, Khan; VP HR, Byer; VP Finance, Ho; and VP Marketing, Krajevski. Jones, VP of the Plastics Division is not viewed as a candidate because he doesn’t have gypsum wallboard experience. All of the candidates are viewed as ‘competent’ in their current roles. Byer and Ho are viewed as ‘exceptional’. Neither executive, however, has direct line management experience in the manufacture of gypsum wallboard. One of the key problems that the organization faces is that there is no formal performance management system in place, let alone a succession management process.

Your group has been hired as consultants to US Corp with the mandate to: a. determine if there is a viable internal candidate for the President and CEO position within the Stonewall organization, and b. develop and implement a succession management process so that Stonewall will not find itself in this position again.

Questions 1. Outline the major benefits of implementing a succession management process. (10 marks)
- Succession planning enables an organization to respond appropriately and stay on track when inevitable and unpredictable changes occur: it provides for the continuity and future direction even in the turmoil of change
- It helps develop people as they prepare for the new experiences and jobs, and this development can also help improve their performance in current positions.
- When succession…...

Similar Documents

Succession Planning

...Running Head: Developing Leadership Capital Succession Planning: The Critical Challenge for Law Enforcement of Developing Leadership Capital in the 21st Century Kelly Hedum University of Central Florida Abstract Succession planning is a critical leadership tool for ensuring organizational growth and continuity by eliminating substantial gaps in institutional memory, knowledge, and leadership through strategic placement of key personnel. One of the greatest challenges facing many organizations in the 21st century is how to affect a well designed change of leadership while maintaining organizational continuity and meeting or exceeding organizational goals. Current research suggests that many organizations will experience a leadership transition crisis in the absence of the implementation of a well designed, functional succession plan for the future. The purpose of this paper is to examine the leadership concept of succession planning and discuss two theories, trait theory and path-goal theory, and their relationship to the succession planning process. Succession planning is a six step process. Three important dimensions critical to succession planning as a leadership development tool include evaluating the future needs of the organization, the identification and development of leadership talent, and the ability to identify and implement results. Historically, succession planning is not part of an assigned role or task in a police agency and tends to get......

Words: 5563 - Pages: 23

Succession Planning

...William J Rothwell, Putting Success into your succession planning May, 2002. This article identifies the factors and strategies that can assist an established or growing organization meet its continua yearn for skilled people at all levels of an organizational functions through succession planning. Succession planning is simply a process by which the management identifies the potential successors of different functions in the company, thereby creating different initiatives in ensuring the development of identified successors. Succession is all about a smooth continuation and success of the organization and it depends on the competency of the people. The article did hit some very strong points in identifying some good practices in succession planning and management, they are; Clarifying the purpose and desired result of the effort, determine what performance is required, measure the performance, determine what performance is needed in the future, assess the potential, establish a means to narrow the gap, follow up, document competence, create and sustain rewards for developing people, evaluate results and lead from the front. One of the important factors discussed in the article and I agree with is time, an organization has to realize that it is a long term investment, an investment the company needs to devote time and effort to building. The step outlined in the article which describes the best practices of succession is quite easy to implement and actualize, it’s......

Words: 500 - Pages: 2

Succession Management

...the major benefits of implementing a succession management process (10 Marks) Organizations need to be prepared for inevitable and unpredictable change. Decision makers within a company, such as CEOs, CFOs, and other executives, will eventually retire, pass away or leave for other reasons. It is important for organizations to have a plan to replace these employees to ensure business continuance. Succession Management is beneficial as it ensures that a “qualified individual is ready to step into an opening in any of the key management areas” (Module 3: HR Planning and its subsets, Pg2). Organizations have values, ethics and ideas that they want to remain intact year after year regardless of who is in charge. Without a succession management program, an organization may not be able to ensure that crucial programs, services and responsibilities are carried on after an executive leaves the position. Succession planning helps develop people as they prepare for new experiences and jobs, and this development can also help improve their performance in current positions. This allows for internal promotion, thereby helping employees realize their career plans and ambitions within the organization and positively motivating them. Ensuring that there is a plan in place, and employees ready to fill key positions that become vacant will provide a smoother transition as key positions are transferred from one employee to another. Succession planning supports new organizational......

Words: 1538 - Pages: 7

An Assessment of the Effectiveness of Succession Planning in Public Sector:

...TABLE OF CONTENTS: 1.0 Introduction and Background Of The Study 4 1.1 Statement Of The Problem 6 1.2 Main Objectives 7 1.2.1Specific Objectives: 7 1.3 Research Questions 7 1.4 Significance Of The Study: 7 1.5 Limitation Of The Study: 7 2.0 Literature Review Of Succession Planning 8 2.1 Theoretical reveiw 8 2.1.1 Key Steps Towards Effective Succession Planning 9 2.1.2 Measures For Effective Succession Planning 13 Part A Measures: Group 1 -- Basic Plan Usage Factors. 13 Part A Measures: Group 2 -- Assessing Whether Your Plan Contains Key Design Features 14 Part B Measures: Group 3 -- Operational Indications Of Plan Success. 15 Part B Measures: Group 4 -- Measures Of Direct Business Impacts 16 Part B Measures: Group 5 -- Indications Of Plan Failure 17 2.2 Empirical Studies Of Succession Planning 18 3.0 Research Methodology 20 3.1 Introduction: 20 3.2 Research Design: 20 3.3 Area Of The Study: 20 3.4 Unit Of Enquiry: 20 3.5 Sample Size And Sampling Procedure: 21 3.5.1 Sample Size. 21 3.5.2 Sampling Technique 21 3.6 Data Collection Methods: 22 3.6.1 Questionnaires: 22 3.6.2 Interview: 22 3.6.3 Participant Observation: 22 3.6.4 Documentation: 22 3.7 Work Plan and Research Budget...............................................................................22 3.7.1 Research Activities & Work Plan.....................................................................22 3.7.2......

Words: 8255 - Pages: 34

Succession Management

...1.      Outline the major benefits of implementing a succession management process. Succession management programs are used to identify individual employees who have the skill and ability to assume fundamental roles within the employing organization and prepare them for positions if and when they become available, do to uncontrollable situations (1). Otherwise a succession management program can ensure a smooth transition of power under normal circumstances (4).   A succession management program can identify and replace a vital member of an organization quickly and effectively. Without a succession management program in effect, it can take anywhere between 6 months to 2 years to replace a key employee and therefor decrease the operating performance of the company producing a negative effect on the organization for years following the replacement. Here are a few reasons why an organization should ensure they have a succession management program in effect as outlined in course text (2): 1.      Provide increased opportunities for high-potential workers. 2.      Identify replacement needs as a means of targeting necessary training, employee education, and employee development. 3.      Increase the talent pool of promotable employees. 4.      Contribute to implementing the organization’s strategic business plans. 5.      Help individuals realize their career plans within the organization. 6.      Tap the potential for intellectual capital in the organization. 7.     ......

Words: 3600 - Pages: 15

Succession Planning

...Succession planning is a strategic approach to ensure that necessary talent and skills will be available when needed, and that essential knowledge and abilities will be maintained when employees in critical positions leave. The smooth operation and future development of IT systems are indispensable to a company. Succession planning in the IT department is critical because you want to make sure the business is always prepared and protected while the technology’s role as a business enabler continues to grow. It is also particularly important in high tech because the field is so specialized and ever changing. An executive can never be in a position where he/she is leaving the business, worried about getting the support the organization will need once they are absent. As the impact of technology has grown across global enterprises, IT has become critical to every corporate function, and IT effectiveness has become a competitive weapon. The key to maintaining department wide continuity and reliability is identifying not just the stars of tomorrow, but going a few levels deeper to scope out employees with the potential to step up to the plate years from now (Nash). Globalization and corporate productivity is driven increasingly by information technology’s ability to make data available to decision makers anytime, anywhere. The CIO must understand the company’s products, services and structure like never before and wear a number of different hats while working with internal and......

Words: 1215 - Pages: 5

Succession Planning: Insurance for the Organization's Future

...Succession Planning: Insurance for the Organization's Future What is Succession Planning? Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company (Mathis, Jackson & Valentine, 2013, p. 47). The process of succession planning begins by recruiting excellent employees. Managers in turn utilize their workers abilities and understanding by preparing them for advancement into more challenging roles. Succession planning essentially is what makes it possible for employees to continually advance into a needed role within the organization. So the sole purpose of succession planning is to ensure that the organization has employees ready to fill these new roles when needed. Done effectively, succession planning can prepare the company for expansion and organizational reform for new opportunities to help build your company for success. Why Should Businesses Use Succession Planning? Succession planning is a logical way for businesses to prepare for the future. Eventhough many employees think of succession planning as, who is going to take over the business? Succession planning is much more than just the changeover of ownership. Businesses must prepare to develop and interchange key employees and staff and anticipate and plan for the impacts that any transition in ownership could have. When succession planning is effectively executed, companies experience a smooth transition (Simoneaux......

Words: 3151 - Pages: 13

Ge Succession Planning

...ETHICAL DILEMMA An ethical dilemma can be defined as a complex situation that often involves an apparent mental conflict between moral imperatives. In this movie context, an ethical dilemma is a debate between two moral principles, where two sides can argue about what is wrong or what is right. This is simply because each person has their own self-interest. However, there is no real answer to an ethical dilemma. It is simply a matter of what one believes in. In this movie, it tells us the story of parents who conceived a daughter which is Anna through genetic engineering in purpose to save her elder daughter Kate who was the patient of leukemia by donating her sister the blood and other body organs like kidney and marrow all over her life span. The ethical dilemma issue was portrayed in the movie started when Anna want to protect her own body from medical procedure by engage a lawyer and filed a law suit of medical emancipation against her parents. Now the question arises who is ethically correct? Whether Anna or her parents. Both sides argue that they are right and have a right to do so. From the parents’ perspective, the mother, Sarah fitzgerald strongly stick with ethics of care which a person should take care of the person close to him or dependent upon him. In this case, Kate depending on Anna for her living and Anna should help her out in every possible way. During the court session, Sarah make statement that people give their kidney to total stranger and...

Words: 855 - Pages: 4

Charismatic Ceos and Succession Planning: Not so Charismatic

...CEOs and Succession Planning: Not so Charismatic” This article takes a look at CEO succession planning. It essentially focuses on charismatic CEOs and how they chose their successor. This article argues that the approach most charismatic CEOs take is flawed, hence, their successors tend to struggle. Most charismatic CEOs often do not make succession planning a priority until it is too late. In cases where a company puts a process in place, charismatic CEOs tend to be domineering in their choice of a successor. In other cases, charismatic CEOs die on the job, thereby making the transition shaky. Although this article delves into the open literature for insights, it also uses a case study to drive home the point that charismatic CEOs’ approach to succession planning is flawed. The challenges of succession planning are truer today than ever. Indeed, the abrupt departures of two important charismatic CEOs – Charles Prince of Citygroup and Stanley O’Neal of Merrill Lynch – in the aftermath of the 2008 financial crisis, which fetched these firms colossal losses have made scholars to beam their searchlight on this neglected aspect of corporate governance. The nonchalance with the way some CEOs handle the process of succession planning not only puts their companies in jeopardy, but also signposts a major criterion on which outgoing CEOs and their executive board members will be evaluated. Before we proceed, we will issue a caveat: the practice of succession planning runs......

Words: 3191 - Pages: 13

Hrm Succession Planning

...Succession Planning, A parallel between Corporate America and the American Military Cong T. Nguyen DeVry University Professor HRM594 October 07, 2015 Introduction Continuity, a word often spoke of but not practiced. In the human resources world, continuity has been and always good for business but due to many factors such as turnover rate, market and economic forces, succession planning is incomplete or was developed and gather dusts until an emergency arises. Being a military veteran, I’m always mindful of continuity and what it means to accomplish the mission. Succession planning is important as it ensures plans are in place to deal with disruptions of the workforce. In this paper, I will attempt to show how the Marine Corps’ concept of continued leadership development can take place of succession planning in the corporate world. I will use mostly journals from DeVry Database specifically ABI/Inform Global to prove my points and how the concept of continued leadership development should be used in the corporate world of America for better succession planning. Approach: As an HR manager or professional, one will almost assuredly deal with succession planning, to be more specific, continuity in the staffing of any organization. The problem is that at any given time, someone is thinking about a career change, and when they find a new job or career, they tend to drop everything and focus on the new job. This burning of bridges can cause human resource a lot...

Words: 1135 - Pages: 5

Succession Management

...| ELITE 9 | | | SUCCESSION MANAGEMENT | | Submitted to- Muhammad Abdul Baset Assistant Professor Department of Management Studies Jahangirnagar University, Savar, Dhaka. Submitted by-   ELITE 9(Academic Group) Session: 2014-2015 Department of Management Studies Jahangirnagar University, Savar, Dhaka. Date of Submission: 25/02/16 ------------------------------------------------- Group Name- ELITE 9 Department of Management Studies Jahangirnagar University Savar, Dhaka. Members of the group- Name | ID | Tasnia Zannat | 682 | Farjana Akter | 684 | Manal Binte Md Ullah | 686 | Homaira Amin | 689 | Asura Akter Sunna | 692 | Raiyan-Ul Jannah | 694 | Munmun Rahaman | 695 | Fahima Sultana | 696 | Robiul Awal Tuhin | 697 | Course Name: Human Resource Planning Course Code: HRM-502 Group leader: Tasnia Zannat ID-682 Letter of Transmittal 25th February, 2016 Muhammad Abdul Baset Assistant Professor, Department of Management Studies, Jahangirnagar University, Savar, Dhaka. Subject: Submission of an assignment on “Succession Management”. Dear Sir, We the students of Elite 9 group from Department of Management studies of 1st batch. We are going to submit our report as the part of our course objectives. During the process of preparing the assignment, we get the chance of...

Words: 6192 - Pages: 25

Managerial Economics - What Is Succession Planning

...from the nominal rate. What is the error from using this rule of thumb for calculating real rates of return in the following cases? Nominal rate (%) 7 12 18 22Inflation rate (%) 4 6 8 10 7. When financial leverage is considered favorable? Are the share holders of a company likely to gain with a debt component in the capital employed? Explain with the help of an example? Human Resource Management Section – A (Marks – 25) Attempt all questions 1. What is Human Resource Management and what is the importance of HRD in an organization? 2. Explain Recruitment and what is the different type of recruitment process? 3. Discuss the Grievance procedure? 4. Explain Concept of Training Evaluation? 5. What is Succession Planning? Section – B (Marks – 25) Attempt all questions – 1. Explain Sensitivity Training? 2. What are the various method of appraisal? 3. Discuss the importance of training in organization? 4. Discuss various factors that influence selection process? 5. Explain the various type of incentive systems? Section – C (Marks – 50) Attempt any five questions – 1. Discuss what Human Resource Management is and explain the difference between Personnel Management and HRM? 2. Discuss the ethics and concept of Performance Management and explain MBO method of performance appraisal? 3. Discuss what collective bargaining is and explain its importance in industrial relations? 4. What is Trade Union?......

Words: 1096 - Pages: 5

Business Succession Planning

...Assignment #5 - Business Succession Planning Dr. Kerry Lanza Entrepreneurship & Innovation – BUS521 12/11/2011 1. Discuss the current small business start up success and failure rate in the U.S. market. As of 2009, according to the U.S. Small Business Administration Office of Advocacy there were 627,200 in successful start-ups, 595,600 in business closures and another 43,546 in bankruptcies. According to the Small Business Administration, over seventy five percent of jobs are created by small companies; and according to the Bureau of Labor Statistics' (BLS) job-growth projections for small businesses in the next ten years are on the rise for the following categories: IT, employment services, management, home health care, childcare, and entertainment. However, the business closures and bankruptcies are staggering. The recent failure rates in the US are due to a variety of reasons; the greatest at this point is the global economic recession. 2. Discuss the red flags for a small business related to business failure and bankruptcy. Approximately fifty percent of company start-ups shut their doors in approximately four years. This is due business owners not recognizing red flags such as insufficient planning, meager cash-flow managing, undercapitalizing, and too much debt. Many businesses fail to due the appropriate market research which would have justified whether there was a demand for their service or product. A major red flag, yet one time and again......

Words: 1421 - Pages: 6

Succession Planning

...Whilst the aforesaid succession strategies were relatively successful, the need to plan ahead has rendered them ineffectual (Cannell, 2009). The nineties marked the period of growing uncertainty, of increasing sped of change in the business environment and flatter structures (Mowtani et al., 2006; Cappelli, 2008; Cannell, 2009). Without a doubt, it was difficult to ascertain as to whether or not the job one has will still exist after one year. It is because of this then that succession planning has increased its importance. Succession planning is defined as the process of identifying and developing internal people who possess the potential to fill key leadership positions in the company (Whitmore, 2006). In view thereof, many scholars believe that it is through succession planning that the company is assured that more people who are experienced and capable in assuming leadership positions are available. Whitmore (2006) further adds that it is because of the abovementioned that the so-called replacement planning for key roles is at the core of succession planning. This research paper has been devoted to the analysis of succession planning in the field of human resource management. In addition, it would also highlight the issue of succession planning in the hospitality industry. This research shall therefore be divided into the following sections: first, introduction; second, succession planning: an overview; third: the practice and processes of succession planning; fourth,......

Words: 3353 - Pages: 14

Succession Planning

...GENESIS Lurgi is a leading international technology company operating in the field of process engineering and plant execution and design. Around the globe, Lurgi engineers, supplies and builds turnkey plants for application in the fields of gas technology, refining, in the petrochemical and polymer industries as well as for the renewable markets. As the market leader in this field Lurgi fulfills the customers' demands for a cost-efficient planning and construction of safe and profitable plants with the specified quality. In order to remain the first address in the field of plant contracting for all its customers, Lurgi continuously invests in the qualification of its employees and promotes innovation, commitment and flexibility - among others through job rotation and the exchange of employees within our global network of companies. For a couple of years already Lurgi has been part of the worldwide Air Liquide Engineering and construction network with a working relationship that streches back to 1970 and covers several completed projects, Lurgi and Air Liquide have an excellent knowledge of their own respective fields of their expertise. One of the key strength is that the technology owned and mastered by both companies are complementary. The combinations result in an enlarged capacity to meet customer’s needs especially in high potential markets linked to energy and environmental applications. Lurgi maintains a highly competitive edge by using proprietary......

Words: 351 - Pages: 2