Contents

CHAPTER 01................................................................................................................. 3
INTRODUCTION........................................................................................................ 3
Introduction................................................................................................................ 4
1.1

Background to the problem.................................................................................... 7

1.2

Rationale, theoretical or conceptual background/Foundation...........................................8

1.3

Statement of the problem..................................................................................... 10

1.4

Purpose of the research project.............................................................................. 11

1.5

Research questions............................................................................................ 11

1.6

STATEMENT OF HYPOTHESES.........................................................................12

1.7

Significance of the research project........................................................................13

1.8

Assumptions.................................................................................................... 14

1.9

Limitations...................................................................................................... 15

1.10

Definition of terms............................................................................................ 15

CHAPTER 02 LITERATURE REVIEW.............................................................................. 19

LITERATURE REVIEW................................................................................................. 20
2.1

Introduction..................................................................................................... 20

RESEARCH DESIGN AND METHODOLOGY.................................................................28

RESEARCH DESIGN AND METHODOLOGY.................................................................29
3.1

Type of Research............................................................................................... 29

3.2

Data Collection................................................................................................. 29

3.3

Population Target............................................................................................ 29

3.4

Sample Size.................................................................................................... 29

3.5

Variables........................................................................................................ 30

3.6

STATEMENT OF HYPOTHESIS..........................................................................30

CHAPTER 05.............................................................................................................. 43
DISCUSSIONS............................................................................................................ 43
DISCUSSIONS............................................................................................................ 44
5.1

Introduction..................................................................................................... 44

5.2

Discussion....................................................................................................... 44

5.3

Implication...................................................................................................... 44
1

CHAPTER 05.............................................................................................................. 45
CONCLUSION AND RECOMMENDATIONS..................................................................45
CONCLISION............................................................................................................. 46
RECOMMENDATIONS................................................................................................ 46

CHAPTER 01
INTRODUCTION

Introduction
Articles I have chosen were of a great deal to me. They helped me in finding the actual thing
behind my statement of problem. I was trying to find out how talent management and succession
planning are linked together and how they contribute in different areas of the business. After
reading the articles, I came to know that firstly the meaning of talent management is not clear to
few organizations hence it is not implemented properly, and when talent management is not
done, companies lose many of their assets and retention issues are created.
The authors have given a holistic view of both the variables and they have seen how it works in
different type of organization for example family firms or private or public limited companies.
Talent management and succession planning both have their benefits and costs. But to create a
right balance between the two is what companies should bring about.

Are efficient employees leaving the organization?

Females are reluctant to work in the company?
Do companies keep hiring for senior level positions?
Employees lack motivation?
Employees do not see proper growth in the organization?

Above questions are the ones that companies should try to answer and realize the root cause of
the problem. It is observed that companies put in a lot of efforts to hire highly skilled employees
but put in fewer efforts to maintain the environment, conditions etc to retain them. They lack
enthusiasm when it comes to work, or they do not see any growth in the organization hence they
leave?
Global competition and the war for talent have reached a point that requires corporate boards to
be self-assured that their corporations are concentrating on succession planning and talent
4

management at the highest levels. Increasingly, the focus of talent management and succession
planning is being knowingly adapted that are usually driven by business circumstances,
economic conditions, internal shortcomings and new performance challenges. Some
organizations talk of a talent fundamental that involves refocusing collective HR, OD and
management efforts to effect some form of business transformation. It is very essential for
companies to integrate new workers, develop and retain current workers, and attract highly
skilled workers to work for a company. Simultaneously identifying and developing internal
personnel with the potential to fill key or critical organizational positions. And if this is not done,
many repercussions can happen. The fundamental factors that locate a business at risk of
succession failure include the business relying on the owner's specific knowledge which cannot
be simply passed on to a successor, the lack of a appropriate and willing successor manager
drawn from the position of employees or the owner's family and the absence of any plans for
transfer. When Talent management and proper succession planning is combined, it gives
marvelous results. Employee is not just a 9 to 5 visitor in
The organization, but engages in the strategic planning process enthusiastically that eventually
benefits the organization. It further goes in the favor of the organization. Talent management
practices have well design and adapted throughout the years in response to many changes in the
workplace, from the industrial revolution and the increase of labor unions, to positive action,
globalization, and outsourcing. There are many things connected to managing a talent and
succession planning, a few of them are listed below:

Retention
Organizational culture
Career development
Sense of ownership
5

Employee commitment

In an environment where companies are pressured to shift their approach to think more
strategically and efficiently about how to do more with less, the same approach is being useful to
how they manage their talent. In the past this wasn't a concern. People were considered
replaceable. Structural properties comprised of tangible possessions salike the property and
equipment that an organization owned. Not anymore. Now people, mostly talented ones, are
often an organization's most helpful present and future assets.
So why are organizations having so much difficulty hanging onto talent? Why do talent become
so disillusioned and leave? I heard that talented individuals are that their managers have taken
one of their inventive concepts and offered it to upper level management as their own work or
idea. In such situations talent cannot wait to leave and join another organization where they hope
they will be appreciated.
In the wake of a sudden resignation of a chief executive, Companies must find a leader with high
morals and proven skills and this need to be done sooner rather than later. Despite the economy
taking a nosedive and more firms cutting employments, managers of US say they are now
spending additional period employed on retaining key staff, keeping them engaged at the
workplace and paying them bonuses and sending them on training courses
Because of the complex nature of corporations today, it is too not unexpected that company
panels prefer candidates to have come from inside the business because they tend to have market,
product, technical, organizational and cultural knowledge that's required. It is best that
preparations for a fresh executive are directed after the parts.

There's no mystery or silver bullet to assessing the value and potential of your organizations
assets. It's simply a case of how interested you are to find out and how much you care.
1.1

Background to the problem

Talent management is a process that emerged in the 1990s and continues to be adopted, as more
companies come to realize that their employees talents and skills drive their business success.
Companies that have put into practice talent management have done so to solve an employee
retention problem. The issue with many companies today is that their organizations put
tremendous effort into attracting employees to their company, but spend slight period into
retentive and emerging talent. A talent management system must be worked into the business
strategy and applied in day-to-day procedures through the business as a whole. It cannot be left
solely to the human resources sector to appeal and hold workers, but fairly must be practiced at
all levels of the organization. The business strategy must include tasks for line executives to
develop the skills of their immediate subordinates. Divisions within the company must be clearly
division information with other departments in order for employees to gain knowledge of the
overall managerial purposes. Firms that focus on developing their talent integrate plans and
processes to way and achieve their aptitude, as well as the following:

Sourcing, attracting, recruiting and on boarding competitive applicants with viable

trainings

Handling and defining competitive salaries

Training and development chances

Presentation management processes

7

Retaining programs

Promotion and transitioning

It is seen in the organization that they lack a lot when it comes to succession planning and proper
talent management. There is no doubt that talent is immensely available in the market, but to
target the right person for the right job is what companies should put efforts on. At this time
when economy is not in a stable position, it is essential for companies to act pro-actively. To do
so, they would need to think ahead of the time. People lack motivation and are just the 9 to 5
visitors in the company. To eradicate this visitor sense from employees, it is important to
manage the talent effectively. HR department of the organizations should stand on its own and
act responsibly. Once they will start managing the talent well, it will be easier to stream line all
the business processes. Employees will get involved in the organization and take pride to work in
it. According to research countries with the most problems in this area included Romania,
Taiwan, Peru, Japan, Australia and Costa Rica.
1.2

Rationale, theoretical or conceptual background/Foundation

Talent management refers to the process of developing and integrating new workers, developing
and retaining current workers, and attracting highly skilled workers to work for a corporation.
Whereas Succession planning is a process for identifying and developing internal personnel with
the potential to fill key or critical organizational positions. Succession planning ensures the
availability of experienced and capable employees that are prepared to assume these roles as they
become available

In current economic conditions, many companies have felt the need to cut expenses. This should
be the ideal environment to execute a talent management system as a means of optimizing the
performance of each employee and the organization. However, within many companies the
concept of human capital management has just begun to develop. In fact, only 5 percent of
organizations say they have a clear talent management strategy and operational programs in
place today.
At its heart, talent management is simply a matter of anticipating the need for human capital and
then setting out a plan to meet it. Current responses to this challenge largely fall into two distinct
and equally ineffectivecamps. The first, and by far the most common, is to do nothing:
anticipate no needs at all; make no plans for addressing them (rendering the term talent
management meaningless). This reactive approach relies overwhelmingly on outside hiring and
has faltered now that the surplus of management talent has eroded. The second, common only
among large, older companies, relies on complex and bureaucratic models from the 1950s for
forecasting and succession planninglegacy systems that grew up in an era when business was
highly predictable and that fail now because they are inaccurate and costly in a more volatile
environment.
Careful succession planning is critical when those at the helm of a business decide to hand over
responsibility to new management. So if you want to boost the value and salability of your
business for the future, start planning for and building the next generation of human resources
right now. If it is not done, efficient employees will leave the organization and the right person
will not be available to take over the job. One of the most significant causes of turnover is that
many employers perceive conventional employee turnover as posing a bigger threat to their

organizational knowledge than retirement, since younger workers leaving an organization not
only take away knowledge, but also take it to competitors.
1.3

Statement of the problem

The actual problem behind the research project is to see that whether the implementation of
talent management and succession planning will contribute to the success of the organization or
not. There are many things linked with the two variables for example, retention, organizational
culture, brain drain employee engagement etc A company needs to see exactly that are they
hiring the right person for the right job? This would be the first step. The second step would be to
see if they are able to get most out of their employees, i.e. whether those employees are engaging
in the work or are they just the visitors to the organization?
There are many things again a company would need to look on when they talk about retaining
good employees. Factors that can affect their performance and retention are many. At times a
company is unable to provide a good environment to the employee hence they lack enthusiasm
and motivation in their work. Furthermore professionals look for growth opportunities as well, so
is the company able to come up to employees expectation? Because if the efficient employee is
hired the company will have to retain him in a way that his skills and capabilities are used up to
the most.
1.4

Purpose of the research project

The purpose of the project is to see how well talent management and succession planning
complement each other in the success of the organization. How well they create an environment
that enhances employee involvement and creates a sense of ownership in him. In short it is the
matter of using correct means to create the right fit between the organization and the
10

employee. Organizations must begin to look at their workforce as an asset and not as a liability,
and on that basis, begin the long hard task of assessing the capabilities of those assets. Clearly,
the larger the organization, the tougher this job will be and it might be argued that it's probably
better to act in ignorance than not to act at all. Chief executives are starting to focus once again
on people issues rather than purely financial survival in an effort to head off any future employee
retention crisis as and when vacancies and job confidence start to return.
1.5

Research questions
1. Does Talent Management helps to create an effective organizational culture? What
changes does the Talent Management bring to the overall culture of the organization?
2. Is succession planning essential for career development? What is the role of succession
planning in career development?
3. Can retention issues be solved by properly implementing Talent Management? Can
retention problems really are possible to solve by Talent Management?
4. Are Succession Planning and Talent Management required to create a sense of ownership
among employees and boost their engagement? How do they contribute to the motivation
and enthusiasm in employees?
1.6

1.6.1

STATEMENT OF HYPOTHESES

Hypothesis 1:

Ho: Talent Management will help people stay longer in an organization

H1: Talent Management will not help people stay longer in the organization
1.6.2

Hypothesis 2:

Ho: Talent Management will boost employee engagement and create sense of ownership in them

11

H2: Talent Management will not boost employee engagement and create sense of ownership in
them
1.6.3

Hypothesis 3:

Ho: Proper succession planning will enhance career development opportunities for employees
H3: Proper succession planning will not enhance career development opportunities for
employees
1.6.4

Hypothesis 4:

Ho: Appropriate talent management and succession planning improves organizational culture.
H4: Appropriate talent management and succession planning will not improve organizational
culture.

12

The hypothesis detail with its independent and dependent variables is given in the below table:Hypothesis

Independent Variable

Dependent Variable

Hypothesis no 1

Talent Management

Retentions issues

Hypothesis no 2

Talent Management

Employee

Hypothesis no 3

Succession Planning

sense of ownership
Career Development

Hypothesis no 4

Talent

management

engagement

and

and Organizational Culture

Succession planning

1.7

Significance of the research project

This project will ensure the importance of Talent management and Succession planning of
employees in the company. It will provide all stakeholders a wide view of the root causes of
employee turnover or why they lack interest in their work and use organization just as a means to
fulfill their desires. It is essential to understand the employee need as well in todays era to
compete successfully in the market. High turnover, lack of motivation, lack of interest etc. leads
to the bad end for a company and increases their costs enormously.
Hiring the right person for the right job is not enough, and it is now not only the job of the
Human Resource department to look over these issues. Every department operating in the
organization must ensure their employees satisfaction and make sure they give their utmost
output; which will be mutually beneficial for a company and for the growth of the employee. It
happens sometime that a person is hired at the company with full rectitude, but later when he
starts working the company gets shaky of their decision for hiring that person. Reasons needs to

13

be clear, either the employee lack somewhere or the employer has made a mistake during hiring
that could not validate their choice. He might not be getting the right environment or the right
supervision under which he can give his best or a reason can be he has the potential but he lacks
execution. Here the manager job starts, where he will ensure that his employees give their utmost
with full motivation and enthusiasm. He will have to be an employee champion in that case.
Many people even at this time of recession are willing to put their utmost but want growth. Now
how can a company manage their talent which will satisfy both the employer and the employee?
Proper talent management will lead to efficient use of employees and side by side will ensure
their satisfaction, because anyone can never ignore a fact that he is a human and not a machine.
Retirements are something that companies should backup as well. Proper use of succession
planning will help the company run smoothly. Hence this project will in whole find ways that
will be beneficial for the company to manage their Assets in a way that they can compete well
in the market and managers will be contented with their hiring.
1.8

Assumptions
1. Companies have knowledge of Talent Management and succession planning
This is assumed because Talent Management and Succession Planning both are
extremely essential for businesses to operate in todays world
2. Companies try to put in some efforts to retain efficient employees.
This is assumed because for a company to run smoothly, efficient workers are
essential.
3. Good talent is available
This is assumed because still students are graduating from well-known universities
and are still job less.
4. Proper talent management is not implemented
If not proper talent management is practiced in the organization, but they put efforts
to retain good employees, for example increase their pay, give then more benefits etc.

14

1.9

Limitations
1. A time constraint:
The time constraint was there as HR people had less time to give; it was in the middle
of the lunch break.
2. Lack of interest by respondents:
It was very hard to create interest in filling the questionnaire, many filled with interest
but few exceptions were there as well.
3. Get accurate knowledge:
It was difficult to get the accurate knowledge as many companies hide their
information due to privacy policy.
4. Lack of knowledge:
Many were not aware of the HR terminologies; hence I had to explain things to them
in detail.
1.10

Definition of terms

1.10.1 Affirmative action

A process in which employers identify problems areas, set goals, and take positive steps to
guarantee equal employment opportunities for people in a protected class.

1.10.2 Brain Drain

The large-scale emigration of individuals with technical skills or knowledge; it is normally due
to conflict, lack of opportunity, political instability, or health risks.
1.10.3 Career development

15

The process by which individuals establish their current and future career objectives and assess
their existing skills, knowledge or experience levels and implement an appropriate course of
action to attain their desired career objectives.
1.10.4 Competencies
The knowledge, skills and abilities required to perform a specific task or function.
1.10.5 Content validity
The degree to which an interview, test, or other selection device measures the knowledge, skills,
abilities, or other qualifications that are part of the job.
1.10.6 Core competencies
The skills, knowledge and abilities which employees must possess in order to successfully
perform job functions that are essential to business operations
1.10.7 Demographics
The physical characteristics of a population, such as age, sex, marital status, family size,
education, geographic location and occupation
1.10.8 Development
Efforts to improve employees ability to handle a variety of assignments.
1.10.9 Effective manager

16

An active leader who creates a positive work environment in which the organization and its
employees have the opportunity and the incentive to achieve high performance.
1.10.10 Effectiveness
The extent to which goals have been met.
1.10.11 Efficiency
The degree to which operations are done in an economical manner OR the ratio of outputs to
inputs
1.10.12 Employee champion
Listen and respond to employees and find the right balance between demands on employees and
resources available to employees.
1.10.13 Employee retention: Organizational policies and practices designed to meet the diverse
needs of employees and create an environment that encourages employees to remain employed
1.10.14 Globalization
The term used to describe increasingly mobile organizations that are performing their operations
in foreign countries.
1.10.15 Goal
A statement outlining the long-term results, accomplishments or objectives an organization seeks
to attain.

17

1.10.16 Outsourcing
A type of flexible staffing option; an independent company with expertise in operating a specific
function contracts with a company to assume full operational responsibility for the function.
1.10.17 Organizational culture
A pattern of shared values and beliefs giving members of an organization meaning and providing
them with rules for behavior.

18

CHAPTER 02
LITERATURE
REVIEW

19

LITERATURE REVIEW
2.1

Introduction

Articles I have chosen were of a great deal to me. They helped me in finding the actual thing
behind my statement of problem. I was trying to find out how talent management and succession
planning are linked together and how they contribute in different areas of the business. After
reading the articles, I came to know that firstly the meaning of talent management is not clear to
few organizations hence it is not implemented properly, and when talent management is not
done, companies lose many of their assets and retention issues are created.
The authors have given a holistic view of both the variables and they have seen how it works in
different type of organization for example family firms or private or public limited companies.
Talent management and succession planning both have their benefits and costs. But to create a
right balance between the two is what companies should bring about.
2.2

Talent Management, understanding the dimensions.

We can see in todays era that the war of talent has emerged and it demands proper work-life
balance. There are skill shortages at times, or sometimes companies are unable to find the right
person for the vacant position. Due to this many problems can occur, so it is better that
companies put in their efforts on Talent Management and succession planning to avoid the
haphazard in the end. It is true that companies need to revitalize and change themselves
according to the changing situations.

20

This article gives a good understanding of the talent management and succession planning. It is
indeed very important to understand what is the relationship between them and how can
organizations use it for the benefit of the company and the employee as well. It states that talent
management has become a key strategic issue, now here we need to see that they are using a
word strategic for the talent management implementation. This clearly tells us how important it
has become now in todays era to manage the efficient talent well.
For talent management to work in the success of an organization, we need to understand what
exactly is meant by talent management, this article gives a thorough understanding on the
subject. It is indeed true that women workforce is increasing day by day, and keeping the
statistics in mind we can see a rising trend in this. It is true that when organizations face
demographic or any change, they need to refresh their HR practices, and this is how they can
coop up with the changing situation.
Succession planning is important because it saves a lot of cost to the companies for example,
hiring cost of the new employee. Then altogether hiring an outsider for the senior level positions
can be risky. Hence the companies heads like the CEO, or the corporate boards of director
should keep an eye and constantly work on planning a successor so that any hindrances in the
business processes are avoided.
It is essential to retain good employees for the company, because they can be a source of
providing information to our competitors. This is the valid point that article suggests and a
company must be aware of it.
They have interviewed many high level position executives who belong to different
organizations. For example, they interviewed senior executive at Cargill company, then an
21

executive at NHS trust and then head of development pricewaterhouse coopers. The results
stated that they believe a proper implementation of Talent Management and Succession planning
in firms.
2.3

Management turnover and succession planning in firms

It is true that a lot of work has been done to see how succession planning is implemented, but we
need to see how exactly succession planning effects the turnover rate. It is sometime favorable to
hire internally as the person is aware of the business processes plus it saves companies a lot of
costs. But succession planning is something that is seen in the larger organizations mostly. Of
course there are benefits as well as costs associated with succession plan. Companies need to
check upon their desirability and implement the process accordingly.
In Pakistani organizations this can be implemented in a proper way to avoid problems in the
higher management. Usually this is seen that companies places the ads for the higher level
positions frequently. This can be improved if they implement succession planning in a proper
way. The type of succession plan will depend on company to company. But the costs associated
with this process cannot be ignored either. The current CEO will have to put his time on creating
a successor. Now the balance is indeed important so that the costs do not exceed benefits.
The sample used in this study consists of the 800 firms included in the Forbes 1991 annual
compensation survey (since the Forbes compensation data typically relates to the prior year, the
actual compensation data obtained is for the year 1990). Only firms that have data available on
the Center for Research in Security Prices (CRSP) tapes included. Information on these firms is
then obtained for the years 1987-1997. Details of the CEO name, age, and tenure and founder
status are taken from the Forbes annual compensation surveys.
22

The hypothesis developed by the author are very accurate and logical, these are the frequent
things that we tend to think on.
The author scrutinize in detail some of the issues involved in the process of relay succession.

The costs and benefits of succession planning

The kinds of firms that do succession planning,
Whether the appointment of an heir apparent is in shareholders interests or is indicative
of entrenchment of the senior management.

These are the points that we need to consider before making a decision. It is true that the
company wants to do something that is mutually beneficial for the company as well as the
employees
2.4

Succession scenarios to polish firms

The article talks about the succession scenarios in family firms. Although this is true that people
think that the concept of family firms is not decreasing, but the statistics provided by the article
shows that these firms contribute 55% of the total GDP which is a high figure. Family firms
concept is wide and is usually seen as when the family members are allocated different positions
in the company.
What exactly I have seen is that a father starts a company for his son and simultaneously
operating another firm which is his own. Then he sends his son to work for a bigger enterprise
and come back and look after his own business. This way many people get involved in the
business and new ideas that are taken from the competitor firms are being implemented here.
This is the trend that is being followed In Pakistani organizations. It is very essential for a family

23

to have a strong relationship with its business, otherwise outsiders may take advantage if they
family starts depending on them.
This article gives a good understanding of the types of successions as well, defensive succession
and transformatory succession. The difference in both the types is of the involvement of the
family. Both the types can be seen in Pakistan.
Research survey was conducted on a random sample of 496 family enterprises in first
Quarter of 2009. The companies were divided into three groups:
85 family firms which were sold or transferred (17.13%),
147 family firms which plan to face the choice of succession (29.64%),
264 family firms which are not interested in succession planning (53.23%).
For qualitative research they used Lyon, Lumpkin method. Whereas for quantitative research
they used questionnaires. Results concluded that the sample is interesting as far as the age of the
studied family firms are concerned. The youngest firm is 2 and the oldest is 140 years old, but
only one fourth of the studies firms are older than 40 (lower quartile Q1 = 13, upper quartile Q3
= 40). The arithmetic mean for the age variable is 29, nevertheless the standard deviation is 24,
which is quite a wide range. The value that occurs the most frequently in a data set is Mo = 17 (at
7 out of 85 cases only), however the number separating the higher half of a sample is Me = 20.
The common type of succession mode seen in Pakistan is that the owner transfers the control and
power to his children and this way the business is taken forward. Still many businesses can be
seen who were operated by their grandfathers or even before that.

24

But when the authority is transferred many changes occur, for example the new trends come in
and the current generation tends to follow that, which is somehow not agreeable by the previous
generation.
The hypotheses created by this article were valid. The aspects of it were the company size,
succession type etc. when they were tested and we get the results that the most common type of
succession is when the ownership is transferred to the heir. Company size depends on the
succession process and they both should be compatible with each other in order for the process to
work effectively.
2.5

A Framework for East of England Strategic Health Authority

The article is a good one because it gives the whole process of implementing the talent
management process for east of England strategic health authority. This would indeed require a
lot of efforts, time and money to get implemented, but the results produced out of this would
help company marvelously in its success. This shows that how much they are concerned about
their talent, because no doubt it is essential to grab good talent otherwise it will go away. This is
their try to do so.
One point they have illustrated is the equality and diversity, this is something that gives a good
impact of the organization. They value diversity and give equal opportunities to all their
employees. If this would not have been done, the bad image of the company would have been
portrayed and eventually the company might have lost its true assets i.e. their efficient and
valuable employees.
There are many steps shown in the process that are necessary. And if all of them are combined, it
will give favorable results. This process does require costs but if organizations in Pakistan also
25

implement such a process, nothing like it then. The actual understanding of talent management is
this. Here companies do try to put in efforts to retain good employees, hire good employees, and
if they want to leave they either increases their designation or compensate it with their pay. But
actually finding out the real talent and the potential talent, this process can prove to be an
excellent one.
It is assumed that this 10% of talented individuals will benefit from explicit, targeted support,
over and above the leadership programmes already in place. They interviewed the employees
who were chosen for the talent management process, checked their potential and worked
accordingly. The results came out to be good as many employees got benefitted.
But nevertheless there are some actions that should be taken before implementing such a system.
The company must be fully prepared, have all the required information with them, all the upper
management should be in collaboration with the team so as to make this process a success.
Talent management is difficult to define because its a complex undertaking that operates within
the strategic human resourcing task generally. In the CIPDs 2006 learning and development
survey, only 20% of respondents specifically had a formal definition of talent management and,
although 51% of respondents said they undertake talent management activities, there is generally
a lack of consistency in defining talent and talent management.
Talent management requires HR professionals to know how they define talent, who they regard
as the talented and what their distinctive background might be. Talent can be considered as a
complex blend of employees skills, knowledge, cognitive ability and potential. How these are all
identified and measured is a challenging task, and a number of issues arise. Coaching is often
cited as a valuable tool for talent management of senior posts.
26

One way in which an organization can ensure that the new Chief Executive Officer (CEO)
possesses all the skills required, is to have a formal CEO succession process, the most common
type of succession is a relay succession(Vancil 1987), is to select an overt heir apparent (the
President) several years before the incumbent CEO is expected to step down. When the
incumbent CEO is ready to step down, he appoints the heir apparent as the new CEO.
The other kind of succession process is a horse race, with two or more top executives vying for
the CEO post. An example of a firm with a horse race succession is General Electric, where
Chairman & CEO John Welch recently announced to step down in April 2001, John Welch
himself succeeded Reginald Jones to the CEO post in 1980 after winning a seven-person horse
race.
Parrino (1997) argues that an important consideration in the selection of a CEO is the human
capital possessed by candidates for that position. Succession costs are defined here as any costs
resulting from these errors and lost opportunities; the more time it takes the CEO to settle down
in the job, the greater the potential succession costs. Also, firms can induce managers to invest in
firm specific human capital by promoting from within the firm. Hiring an outsider involves
potential costs that are not borne by the firm with an insider. Succession planning could impose
costs on the organization. One potential cost is the actual time spent by the incumbent CEO in
selecting and grooming a suitable successor.

27

CHAPTER 03

RESEARCH DESIGN
AND
METHODOLOGY

28

RESEARCH DESIGN AND METHODOLOGY

3.1

Type of Research

The research type of this study is explanatory which is based on quantitative data collected
through survey questionnaire.
3.2

Data Collection

The data was collected through the use of questionnaires. Different departments in the
organization were chosen to respond. The data was collected personally went to the personnels
to get the questionnaire filled as well as sent it via email. In this questionnaire five point liker
scale is used to measure the views of employee 1=Strongly Disagree, 2=Disagree, 3=Neutral,
4=Agree, 5=Strongly Agree.
3.3

Population Target

The questionnaires were distributed to the employees of public and government sector of
Pakistan i.e. State Bank of Pakistan, Orient Energy System, EFU life insurance, Martin Dow
pharmaceutical and public banks The respondents would be of both the genders i.e. males and
females. They belong to different departments of the organization.
3.4

Sample Size

A sample size of hundred participants was used to collect information through questionnaire.

29

3.5

Variables

The dependent variable of this research is talent management and succession planning and
independent variable are organization culture, retention and career development and employee
engagement and sense of ownership.

3.6
3.6.1

STATEMENT OF HYPOTHESIS

Hypothesis 1

Ho: Talent Management will help people stay longer in an organization

H1: Talent Management will not help people stay longer in the organization
3.6.2

Hypothesis 2

Ho: Talent Management will boost employee engagement and create sense of ownership in them
H2: Talent Management will not boost employee engagement and create sense of ownership in
them
3.6.3

Hypothesis 3

Ho: Proper succession planning will enhance career development opportunities for employees
H3: Proper succession planning will not enhance career development opportunities for
employees
3.6.4

Hypothesis 4

30

Ho: Appropriate succession planning improves organizational culture.

H4: Appropriate succession planning will not improve organizational culture.

31

CHAPTER 04
ANALYSIS OF DATA AND
INTERPRETATION OF
RESULTS

32

ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

This chapter will focus on the results that are drawn from the answers of the respondents. The
questionnaire data was analyzed and then the test was applied to see the results. There were 20
questions in all in the questionnaire.

4.1

Talent management and retention

Table 4.1.1

Correlations
Talent
Retention
management
Pearson

Talent
management

Retention

Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N

-.031

50

.830
50

-.031

.830
50

50

Interpretation
In the relationship of talent management and retention in sign 2 tall the value is 0.8 that is above
than 0.5.its indicate that Ho is accepted so there is no significant relation between talent
management and retention.

33

4.1.2 Regression
Table 4.1.2
Model Variables

Variables Entered/Removed
Variables
Method

Entered
Removed
1
Retention
.
Enter
a. Dependent Variable: talent management
b. All requested variables entered.
Table 4.1.3
Model R

Model Summary
R Square Adjusted R Std. Error of the Estimate

Square
1
.031
.001
-.020
a. Predictors: (Constant), retention
In regression R square is 0.001.
a

Table 4.1.4
Model

Sum

.30634

ANOVA
of Df
Mean

Squares
Regression .004
1
1
Residual
4.505
48
Total
4.509
49
a. Dependent Variable: talent management
b. Predictors: (Constant), retention

Square
.004
.094

34

Sig.

.046

.830b

Table 4.1.5
Model

Coefficients
Unstandardized

Standardized t

Coefficients
Coefficients
B
Std. Error
Beta
(Constant) 1.779
.185
Retention -.021
.099
-.031

Sig.

9.639
-.215

.000
.830

a. Dependent Variable: talent management

Interpretation
In an ANOVA p value is .8 that is than above 0.005 which indicates that there is no significant relationship
between talent management and retention. In a regression value where a=1.779 and b=(-0.021) and the
equation is
Y=-0.021X+1.779.

35

4.2

Talent management and employees engagement and Sense of

ownership

Table 4.2.1

Correlations
talent management Employees
engagement
Pearson Correlation

talent management

Employees engagement

.005

Sig. (2-tailed)
N

50

.971
50

Pearson Correlation

.005

Sig. (2-tailed)
N

.971
50

50

Interpretation
In the relationship between talent management and employees engagement the sign 2 tall the
value is 0.9 that is above than 0.5.its indicate that Ho is accepted so there is no significant
relation between talent management and employee engagement and sense of ownership.

4.2.1 REGRESSION
Table 4.2.2
Model Variables

Variables Entered/Removed
Variables
Method

Entered
Employees

Removed

.
Enter
engagement
a. Dependent Variable: talent management
b. All requested variables entered.
Table 4.2.3
Model R
1

Model Summary
R Square Adjusted R Std. Error of the Estimate

.005

.000

Square
-.021

.30648
36

a. Predictors: (Constant), employees engagement and sense of ownership

In regression the r square value is 0.000.
Table 4.2.4

ANOVA

Model

Sum

of Df

Mean

Sig.

Squares
Square
Regression .000
1
.000
.001
.971b
1
Residual
4.509
48
.094
Total
4.509
49
a. Dependent Variable: talent management
b. Predictors: (Constant), employees engagement and sense of ownership
Table 4.2.5
Model

Coefficients
Unstandardized

(Constant)
Employees

Standardized t

Coefficients
B
Std. Error
1.733
.202

.004
.106
engagement
a. Dependent Variable: talent management

Sig.

Coefficients
Beta
.005

8.564

.000

.036

.971

Interpretation
In an ANOVA p value is .9 that is l above 0.5 which indicates that there is no significant
relationship between talent management and employees engagement and sense of ownership. In
a regression value where a=1.773 and b=0.004 and the equation is Y=-0.004X+1.733

4.3

Succession planning and career development

37

Table 4.3.1

Correlations
Succession

career development

Planning
Pearson
Succession
planning

career
development

Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N

.076

50

.598
50

.076

.598
50

50

Interpretation
In the relationship between succession planning and career development the sign 2 tall the value
is 0.5 that is above 0.05.its indicate that Ho is accepted so there is no significant relation between
succession planning and career development.

38

4.3.1 Regression
Table 4.3.2

Variables Entered/Removed

Model Variables

Variables

Entered
Career

Method

Removed

.
Enter
development
a. Dependent Variable: succession planning
b. All requested variables entered.
Table 4.3.3
Model R

Model Summary
R Square Adjusted R Std. Error of the Estimate
Square

.076a

.006

-.015

.45616

a. Predictors: (Constant), career development

In regression the r square value is 0.006
Table 4.3.4
Model

Sum

ANOVA
of Df

Mean

Squares
Square
Regression .059
1
.059
1
Residual
9.988
48
.208
Total
10.047
49
a. Dependent Variable: succession planning
b. Predictors: (Constant), career development

39

Sig.

.282

.598b

Table 4.3.5
Model

Coefficients
Unstandardized

(Constant)
career

Standardized t

Coefficients
B
Std. Error
1.658
.311

.098
.185
development
a. Dependent Variable: succession planning

Sig.

Coefficients
Beta
.076

5.331

.000

.531

.598

Interpretation
In an ANOVA p value is .5 that is above 0.5 which indicates that there is no significant
relationship between succession planning and career development t. In a regression value where
a=1.658 and b=0.098 and the equation is Y=-0.098X+1.658.

4.4

Succession planning and organizational Culture

Table 4.4.1

Correlations
Succession

Organizational development

Planning
Pearson
Succession planning

Correlation
Sig. (2-tailed)
N
Pearson

Organizational
development

Correlation
Sig. (2-tailed)
N

.164
.256

50

50

.164

.256
50

50

Interpretation
In the relationship between succession planning and organizational culture the sign 2 tall the
value is 0.2 that is above 0.05.its indicate that Ho is accepted so there is no significant relation
between succession planning and organizational culture.
40

4.4.1 REGRESSION

Table 4.4.2

Variables Entered/Removed

Model Variables Entered

Variables Method
Removed

Organizational

.
Enter
development
a. Dependent Variable: succession planning
b. All requested variables entered.
Table 4.4.3

Model Summary

Model R

R Square Adjusted

R Std. Error of the Estimate

Square
1
.164
.027
.007
.45132
a. Predictors: (Constant), organizational culture
a

In regression the r square value is 0.027

41

Table 4.4.4
Model

ANOVA
Sum

of Df

Mean

Squares
Square
Regression .269
1
.269
1
Residual
9.777
48
.204
Total
10.047
49
a. Dependent Variable: succession planning
b. Predictors: (Constant), organizational culture
Table 4.4.5
Model

(Constant)
Organizational

Coefficients
Unstandardized
Coefficients
B
Std. Error
1.416
.357

.248
development
a. Dependent Variable: succession planning

.216

Sig.

1.323

.256b

Standardized t

Sig.

Coefficients
Beta
.164

3.964

.000

1.150

.256

Interpretation
In an ANOVA p value is 0.2 that is above 0.5 which indicates that there is no significant
relationship between succession planning and organizational culture. In a regression value where
a=1.416 and b=0.248 and the equation is Y=-0.246X+1.416.

42

CHAPTER 05
DISCUSSIONS

43

DISCUSSIONS
5.1

Introduction

This chapter will include the discussion on the findings, implications of the findings of the
research project to the solution of the problem will be highlighted, and conclusion will include
the final wording of the research project followed by the recommendations and suggestions for
further studies
5.2

Discussion

The overall result of the research shows that the hypothesis was rejected. There were many
limitations to the research project for example there was a time constraint, the author had
interviewed many people on one to one basis but majority of the questionnaires were sent
through email. There were no open ended questions and the close ended 20 questions were there
in total.
5.3

Implication

The results show that Talent management and succession planning is not properly implemented
in Pakistan. Employees were not fully aware of the concepts. Nevertheless, there are a few big
companies who might be practicing it, but the overall scenario shows that it is taken very lightly.
This project shows that what employees look for, what they think about the organization, how
much the organizational culture matters to them and what exactly can retain them in the
organization. Open communication is an important element that is usually missed out. Immediate
supervisors need to make sure what they need to do to get most out of their employees.

44

45

CHAPTER 05
CONCLUSION AND
RECOMMENDATIONS

46

CONCLUSION
The overall result of the research shows that the hypothesis was rejected. The overall project
shows that Pakistan needs to come up to international standards to meet the competitive global
market. Employees here are very talented, and the lot coming out of the universities has got the
talent but at times companies lack behind in retaining and hiring the best and at times candidates
do not prove their abilities and capabilities in a manner that they attract employers towards them.
This issue should be looked over by the employers and they must put their best efforts to get
most out of their workforce as it will eventually benefit them.

RECOMMENDATIONS

One candidate cant fill multiple jobs yet its common to find the same candidate on
multiple succession lists across a single tier of the organization.

The succession bases are covered with candidates who are best suited to the positions.

Job pooling keeps talent-management and succession planning fresher, more flexible, and
more applicable.

Setting up a separate succession plan for jobs that have a unique set of requirements and
dont obviously fit into a pool could set an unfavorable precedent.

You cant develop people in secret so must communicate with employee for better
organizational culture.

47

48

REFERENCES

49

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Krzysztof Wach
4. Management turnover and succession planning in firms Lalitha Naveen
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