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Contents 1. 2. 3. 4. a) b) c) d) e) f) g) 5. a) b) c) d) 6. INTRODUCTION 2 PURPOSE OF SUCCESSION PLANNING SUCCESSION PLANNING PROCESS BENEFITS OF SUCCESSION PLANNING Leadership Continuity 5 Better Retention & Higher Return on Investment on Employees 5 Increased Preparation for Leadership Greater Employee Satisfaction 6 Enhanced Commitment to work and the workplace Financial Stability 6 7 7 6 6 2 4 5

Enhanced Reputation / Improved Corporate Image

DYSFUNCTIONAL BEHAVIOUR AFFECTING SUCCESSION PLANNING Values of the Present Leadership The Glass Ceiling 8 7

Nepotism / Favoritism 8 Too much management / Inefficient use of Resources 8 CONCLUSION 10 8

REFERENCES

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SUCCESSION PLANNING: BENEFITS AND THE DYSFUNCTIONAL BEHAVIOR THAT PREVENTS SUCCESION PLANNING

INTRODUCTION

Succession planning is a process for identifying and developing employees within the organization with the potential to fill key leadership positions in the company.Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. No matter what size an organization is, the pain and expense of having to fill a gap left by a critical employee can be staggering. And unless promoting the employees within, the organization is faced with the high cost of external recruiting, including hiring, training, and support costs, as well as indirect costs such as the productivity losses incurred while waiting to fill that position. Rothwell (2010) states that the aim of Succession planning and management is to match the organizations available (present) talent to its needed (future) talent (p. 9). Through Succession planning organizations are thus able to meet their strategic and operational challenges facing it by having the right people at the right place at the right times. More specifically, succession planning is the on-going process of identifying future leaders in an organization and developing them so that they are ready to move into leadership roles. Atwood (2007) describes this process to include reviewing the organizations strategic plan, studying the current workforce, forecasting future trends, and developing employees in a structured plan to replace leaders as they retire or depart from the organization (p. 1).

PURPOSE OF SUCCESSION PLANNING The purpose of succession planning is to prepare the organization for the challenges and opportunities associated with changes in critical positions. The scope of succession planning can include only the senior leadership positions or it can extend to key positions across the company. Succession planning can also target specific divisions of the company based on current strategic planning and the mission of the organization. Rothwell (2001) has reviewed and identified the following as the major reasons for having succession planning:

To improve on the retention of talented employees within the company;

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To ensure that there is development of employees who are deemed to have potential to take up leadership positions in the future; To develop appropriate training and employee development programs; To increase the pool of talented employees to fill key positions; To add value to the organizations strategic plan and contribute to ongoing business strategies; To ensure individuals receive appropriate developmental training which are in line with their career planning; To ensure that the organization has full access to the intellectual capital of their employees and to ensure that tacit knowledge is preserved within the organization; To improve employee morale and commitment to the organization; and To encourage the development and advancement of the diverse group of employees.

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SUCCESSION PLANNING PROCESS Succession planning establishes a logical basis for making choices among qualified candidates. Who should be selected, why they should be selected and what skills and competencies they own and what needs to be developed in them are critical factors while identifying the employees for succession planning Succession planning as a process may vary from organization to organization however the following steps are critical to having an effective succession planning process: a) Assess the organization During this stage, there is need to access the organization to determine its strategic and operational objectives. Through this formal evaluation there is better understanding of the organization which in turn enables the management to identify elements that will safeguard the strategic growth of the organization including the key operational functions. This assessment will identify positions that will become vacant within the next six months to three years. Department heads should work with staff to envision what their department will look like by the specified time period and report back their vision information. The team uses this information to create an overall vision that is shared with all employees. Goals are then set to achieve the vision.

b) Determine key positions Once the management has determined its strategic and operational direction the next step is to identify those positions that are deemed critical in the execution of the strategic goals of the organization.A key position in this case refers to those positions that are considered to be vital for mission critical operations of the organization. These may be managerial, technical or function specific in nature. Once key positions are identified succession planning becomes inevitable so as to ensure that knowledge and skills do not disappear from the organization when a position is vacated.

c) Identify competencies for key positions The organization thereafterneeds to identify its existing competencies, related to both its leadership needs and the industry it competes in.Competencies are the knowledge and skills necessary to carry out the function(s) of a position. For each key position identified the organization will need to analyze what competencies of the position present the risk associated with its loss. This will also entail defining the key positions minimum competency level of skill or knowledge.

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d) Identify and assess candidates The organization evaluates and assesses current employees to determine how they match up to organizational needs. This is done by narrowing down on candidatesthrough an assessment process or through an interview/evaluation process.It helps HR specialists in knowing and understanding why a specific individual should be developed and trained for promotion to the next level.

e) Create development plans The organization then introduces coaching, mentoring, training and recruitment methods that match personnel requirements and future needs. Through this process employees are mapped to succession pipelines with an individual development plan.The individual development plan describes the objectives and activities for the employees career development. It describes competencies that the employee will apply and enhance and how this development will occur. f) Measure, monitor, report and revise

This includes an assessment of how well the program has worked when compared to the desired objectives and how well an individual is progressing through their developmental experiences. During this stage, the management of the organization continually re-evaluates the overall effectiveness of the succession plan. BENEFITS OF SUCCESSION PLANNING Organizations with a succession plan recruit the right employees, train and develop them, and reward them with promotions and recognition. Succession planning works best where there is a genuine commitment to develop the existing workforce and ensuring that staff members have the skills, experience and knowledge to meet changing work requirements. When change takes place at the top, capable professionals are ready to take over leadership positions. The following are some of the key benefits of succession planning: a) Leadership Continuity A significantbenefit of succession planning is to ensure continuity of leadership through creation of a diverse talent pool. Organizations that develop leaders through succession planning and from the ranks of current employees are more likely to succeed in their operational and strategic objectives. The advantage is that employees from within are able to carry through the ideals of the organizations and grow them as they ascendto leadership positions. b) Better Retention& Higher Return on Investment on Employees Through individually tailored development programs which are career paths for able individuals Management is able to maintain active interest in employees which is vital for retention of talent within 5|Page

the organization.Organizations with succession plans offer key employees training opportunities and help them understand their potential career paths soon after they join. Through individual development plans, employees are exposed to training opportunities which in turn translate to gains to the organization when employees put their newly acquired skills and knowledge to us within the organization.

c) Increased Preparation for Leadership Through Succession planning the company is able to provide a steady supply of able successors selected for key positions. Through HR forecasts capable employees are identified who have the potential to be promoted to next level in the hierarchy.It ensures that there is no vacuum created after a vacancy in a key position, and that there is back-up staff ready to fill in with the necessary training skills and experience.

It reduces the randomness in organizations processes and managerial development movements and establishes formal steps and actions, policies and procedures to support the process of selecting the CEO and other top management executives. It helps HR managers in overcoming the limitations of reactive management approaches and fosters pro-active management approaches to make the organization a better place to work. d) Greater Employee Satisfaction Succession planning benefits the employee by improving his or her understanding of the potential career paths available and the development he or she needs to move along these paths. This leads to improved retention, morale and commitment of the workforce.Employees develop a greater admiration and respect for the organization and management when they see that their interest and their growth is important to the organization.It helps in avoiding premature promotions because employees are guided in their development and prepared for their leadership roles. This also prevents the problem of losing valuable talent because an employee feels disgruntled or dissatisfied with the selection process and their developmental advancements. e) Enhanced Commitment to work and the workplace Employees know where they fit and throughsuccession planning, the management is able to provide a sense of direction, stability and expectations for all key stakeholders: employees, customers, shareholders and vendors. A critically important employee, especially one who knows their value, may not stick around without a succession process that demonstrates the companys commitment to them. f) Financial Stability

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Financial stability is another benefit of succession planning, particularly in regard to saving the company's recruiting and hiring costs over the long-term.Timely succession planning helps in reducing the cost of hiring a person from outside the organization, which would have to be the case if there were no able successors in place. The entire process of external recruitment can be eliminated thereby reducing the financial burden that comes with it. There is also the reduced burden of retraining by the organizations as employees promoted from within have better understanding of the existing business processes and organizational procedures. g) Enhanced Reputation / Improved Corporate Image An enhanced reputation is another benefit of a succession plan. When employees and those outside the organization realize that a succession plan is in place, they are more likely to have confidence in the organization and its mission. The organization can leverage its position in the industry as a great employer or employer of choice by projecting its sincere efforts and interest in employee growth.The Organization thus becomes very attractive to prospective employees because they know the company is well-organized and ready for the future. A succession plan thus becomes a good recruiting tool, because it attracts high-achieving employees who appreciate knowing where their careers may lead them. DYSFUNCTIONAL BEHAVIOUR AFFECTING SUCCESSION PLANNING Behavior is deemed dysfunctional or deviant when an individual or a group violates an organizations norms, policies, or internal values, and threatens the welfare of the organization or its constituents (Bennett and Robinson, 2003).Dysfunctional behavior could hinder the effectiveness of any succession planning that has been put in place by the organization. Failure to have good processes and procedures in the execution of such programs can lead to dysfunctional behavior creeping in. The following are key dysfunctional behaviors that could affect succession planning: a) Values of the Present Leadership Leaders have many different values and attach different levels of importance to each. Leaders thus tend to behave in a manner consistent with their values and because we like people who have similar values and dislike those with different values, values also determine organizational fit (Hogan and Curphy, 2008). No matter how talented an individual may be, if his/her values are inconsistent with the culture, then it is possible that the employee may be passed over as an ideal candidate for grooming into a leadership position. The problems associated with organizational fit reflect the fact that leaders tend to hire people with similar values, which mean that good candidates with dissimilar values will not get hired in leadership positions. To rectify the problem, companies must be willing to develop for promotion, employees with diverse values and then learn to act on those values.

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b) The Glass Ceiling The glass ceiling is an invisible barrier to advancement to the higher levels of the organization. This barrier may be due to stereotypes perceptions or company practices that adversely affect the development of women or minority groups in an organization. This may affect succession planning if there is bias during the selection process that identifies potential employees as candidates for succession planning. Where managers are influenced by such stereotype or display of affinity only towards a select group of employees then this can affect effective succession planning. Managers making developmental assignments need to carefully consider whether gender biases or stereotypes are influencing the types of assignments given to women versus men or certain minority groups. c) Nepotism / Favoritism Such dysfunctional behaviors may include the practice of nepotism or favoritism in the selection of suitable candidates for succession. This also occurs when managers choose candidates for succession planning based on personal feelings about the individual, without regard to whether the person is qualified for the position or not. Through such skewed selection of potential candidates the succession planning process will most probably fail to achieve the desired objectives of grooming the best candidates for leadership positions. This may in the long run expose companies to failure when those at the helm are unable to steer the companys strategic and operational objectives.

d) Too much management / Inefficient use of Resources In situations where employees are micro-managed and not given freedom to act in the execution of their duties, the organization may be unable to identify suitable candidates for succession planning. Employees facing such management styles have a muted level of commitment and enthusiasm and as a result they tend not to showcase their skills. Further, in large organizations the majority of employees may not be well known their managers, and their view of the person(s) may be influenced by the level of visibility the person has in the organization. As a result such employees become passed over for grooming to key positions as they are deemed to be ineffective or inefficient. CONCLUSION

Organizationsneed to therefore put in place effective succession plans as it is through this that organizations are able to safeguard the loss of valuable institutional memory. All things considered, the effort required to establish a development program for future leaders is worthwhile because it creates a motivated and capable group of employees that are ready to move forward in the organization when the need arises.

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Succession planning is not something a well-run company can ignore because the consequences of not being prepared to replace key personnel will have a major impact on an organization's ability to achieve its goals and strategic targets.Despite the many benefits of having a succession plan in place, many companies neglect to develop one. On the other hand, where in place, succession plans may fail when serious conflict or dysfunctional behavior cannot be overcome. It is thus critical for organizations to continually assess their succession planning efforts to ensure that these serve the desired organizational objectives.

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REFERENCES

Atwood, Christee Gabour (2007). Succession Planning Basics. Baltimore: American Society for Training and Development Bennet, R. J., and Robinson, S. L. (2003).The past, present and future of workplace deviance research. In J. Greenberg (Ed.), Organizational Behavior: The State of the Science. Mahwah, NJ: Lawrence Erlbaum Associates. Deb, Tampomoy (2006). Strategic Approach to Human Resource Management.New Delhi: Atlantic Publishers & Dist. Jones, Med. Dysfunctional Leadership: Dysfunctional Organization Workplace Politics & Poor Performance. International Institute of Management http://www.iim-edu.org/dysfunctionalleadershipdysfunctionalorganizations/ Rothwell, William J. (2010). Effective Succession Planning: Ensuring leadership continuity and building talent from within, (4th Edition). New York: AMACOM Rothwell, William J. (2001). Effective Succesion Planning. New York: AMACOM Succession Planning: http://www.orgchart.net/wiki/Category:Succession_Planning Hogan, Robert and Curphy, Gordon. (2008). Leadership Matters: Values and Dysfunctional Dispositions: http://www.leadershipkeynote.net/articles

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