Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What is Succession Planning? Explain the importance of Succession Planning in an organization. (simple info in photo below)
![l SMART
12:54 AM
@ 1 44%
A cdn.fbsbx.com
MEANING AND PURPOSE OF SUCCESSION PLANNING
Succession Planning is -The process of ensuring a suitable supply of
successors for current and future senior or key jobs arising from business
strategy, so that the careers of individuals can be planned and managed
to optimize the organizations needs and the individuals aspirations.
PURPOSE OF SUCCESSION PLANNING is to identify and develop
people to replace current jobholders in key positions. Through
Succession Planning, companies assure a steady flow of internal talent to
fill important vacancies. Succession Planning encourages
within' and creates a healthy environment where employees have careers
and not merely jobs. It helps in identifying human resources shortages
and skill shortages before openings occur. Thereafter, it becomes easy to
groom qualified candidates for future vacancies. The organization is thus
assured of continuity of operations and better qualified incumbents.
hiring from
The absence of a Succession Plan can seriously hamper the growth
prospects of an organization. Imagine the disastrous consequences when
there is a sudden vacuum at the top level. There is no one to see the
ship. Critical plans needing immediate action get postponed. The
organization remains headless and directionless for a while. Suitable
candidates may not be available internally, as no one has been groomed
in the past, keeping such
an eventuality in mind. Bringing in outsiders may mitigate the crisis
temporarily but the long term impact is bound to be negative. Internal
forces may start a rebellion and creating of war situations with frustrating
regularity.
Preparing a schedule for Succession is critical to the success of a
company, especially at the top levet when the baton changes over a
period of time, disruption and dislocation are minimized. Indeed when a
new CEO is meant to consolidate on past successes, a slow shift is ideal.
If qualified candidates are not available within the company, outsiders can
be considered readily for possible openings. Complete dependence on
Succession from within or from outside is not desirable. Internal
candidates require a pat on the back' when they do well. External
candidates are needed for injecting fresh blood into the company
REPLACEMENT CHARTS
A Succession Plan is a plan for identifying who is currently in post and
who is available and qualified to take over in the event of retirement,
voluntary retirement, dismissal or sickness. A typical Succession Chart
shows details of key positions of executives and brief references to their
possible successors. The replacement chart is a visual representation of
who will replace whom if there is a job opening.
TIME FRAME
Right person for the right job, at the right place and right time implies the
time frame of succession planning. Time frame is applied for mentoring,
training and job rotation. As the process of succession planning is to find
right person within the internal frame work, there are possibilities when no](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10bb0a3d-d435-4561-b562-6d9f3efd8ffc%2F97c99600-9b85-49d7-89d1-7397a200441d%2Fr5mcqmn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:l SMART
12:54 AM
@ 1 44%
A cdn.fbsbx.com
MEANING AND PURPOSE OF SUCCESSION PLANNING
Succession Planning is -The process of ensuring a suitable supply of
successors for current and future senior or key jobs arising from business
strategy, so that the careers of individuals can be planned and managed
to optimize the organizations needs and the individuals aspirations.
PURPOSE OF SUCCESSION PLANNING is to identify and develop
people to replace current jobholders in key positions. Through
Succession Planning, companies assure a steady flow of internal talent to
fill important vacancies. Succession Planning encourages
within' and creates a healthy environment where employees have careers
and not merely jobs. It helps in identifying human resources shortages
and skill shortages before openings occur. Thereafter, it becomes easy to
groom qualified candidates for future vacancies. The organization is thus
assured of continuity of operations and better qualified incumbents.
hiring from
The absence of a Succession Plan can seriously hamper the growth
prospects of an organization. Imagine the disastrous consequences when
there is a sudden vacuum at the top level. There is no one to see the
ship. Critical plans needing immediate action get postponed. The
organization remains headless and directionless for a while. Suitable
candidates may not be available internally, as no one has been groomed
in the past, keeping such
an eventuality in mind. Bringing in outsiders may mitigate the crisis
temporarily but the long term impact is bound to be negative. Internal
forces may start a rebellion and creating of war situations with frustrating
regularity.
Preparing a schedule for Succession is critical to the success of a
company, especially at the top levet when the baton changes over a
period of time, disruption and dislocation are minimized. Indeed when a
new CEO is meant to consolidate on past successes, a slow shift is ideal.
If qualified candidates are not available within the company, outsiders can
be considered readily for possible openings. Complete dependence on
Succession from within or from outside is not desirable. Internal
candidates require a pat on the back' when they do well. External
candidates are needed for injecting fresh blood into the company
REPLACEMENT CHARTS
A Succession Plan is a plan for identifying who is currently in post and
who is available and qualified to take over in the event of retirement,
voluntary retirement, dismissal or sickness. A typical Succession Chart
shows details of key positions of executives and brief references to their
possible successors. The replacement chart is a visual representation of
who will replace whom if there is a job opening.
TIME FRAME
Right person for the right job, at the right place and right time implies the
time frame of succession planning. Time frame is applied for mentoring,
training and job rotation. As the process of succession planning is to find
right person within the internal frame work, there are possibilities when no
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