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SUCCESSION PLANNING

By
Kalindu Witharanage
Reg. No. 07SKCM6087
INTRODUCTION
• Three types – a. Management succession planning
b. Business succession planning
c. Family Business succession planning

• Process of identifying and preparing suitable


employees through mentoring,training and job rotation
to replace key players.
DEFINITION

“Succession planning is a process by which one or


more successors are identified for key posts and
career moves and/or development activities are
planned for these successors”. Successors may be
fairly ready to do the job or seen as having longer
term potential. – By Wendy
• A succession plan clearly sets out the factors to be
taken into account and the process to be followed in
relation to retaining or replacing the person.

• Succession Planning involves having senior


executives periodically review their top executives and
those in the next lower level to determine several
backups for each senior position.
BUSINESS SUCCESSION PLANNING

• Business succession planning involves planning for


the smooth continuation and success of a business
which depends greatly on the availability of competent
people.
• Be it profit or non-profit organization, one of the
concerns is there may be no successor to drive it once
the leader or key person leaves – either by choice or
by circumstances.
• Without succession planning, a business that has
become successful can just as easily fall.
• There are two main options available to business
succession planning, which are:
1.Retention Planning: Retention of the
business within the family circle; and
2.Buy-sell Planning: Selling of the
establishment to other business owners or
key employees or interested outsiders
Family Business Succession Planning

• Due to the complexities surrounding the


transfer of ownership of family businesses
from one generation to another, specific
resources have been developed for family
business owners planning for this
transition
BENEFITS
• Ensuring continuity, avoidance of problems of
transition which hamper both individual and
organisational performance and effectiveness.

• Provide an added impetus to growth of


employees with high potential and good
performance in the organization.

• It facilitates in building teams and optimizing


their performance by emphasizing on strengths
and weaknesses of the team members.
• It ensures a direction to HR systems of Training &
Development and Talent management.

• It facilitates in optimizing performance across the


organization.
CONCLUSION
• Succession planning is a part of
company’s annual strategic plan.

• Indian corporations have realized the


importance of succession planning for the
top position.

• It requires continuous planning by HR


managers and the support of the top
management.
• No succession planning can be complete
without involving the women in the family
and setting up specific structures to
resolve their differences.