Succession Planning Essay Example | Topics and Well Written Essays - 2000 words

Succession Planning - Essay Example In simple terms, succession planning is an organisational process of pinpointing or selecting certain competent people as successors for key executive appointments like CEO, CMD etc. after expiry of terms of their current occupants and proactively planning their career moves in that direction. This process is straightforward in a family business where the heirs are obvious and well known. However, in other organisations, succession planning is required to be logical and well thought out management process in short and long terms requiring considerable effort towards grooming an individual for an extended period to take on the top job. This is the only tool we have today which sanctions the organisation to plan well-tailored and proactive career moves for their most talented pool of future managers. (Hirsh, 2000) However, if such succession planning is put off or ignored by the top management, the consequences can be catastrophic. This is especially so if the existing talent pool lacks competencies to take on challenges of a modern business world and there is no suitable candidate available from outside the organisation to take on the top job. Consequently, opinions vary considerably on whether succession plans should involve selection of existing talents within the organisation as discussed by Groves, Biggs (2004), Blackler & Kennedy (2004) and Cogner and Fulmer (2003) or top jobs should be handled by tapping talents from the outside market. While selecting employees from within the organisation has its own benefits like better motivation, higher integrity, reinforcement of management's faith in employers, good in-depth knowledge of strengths and weaknesses of the organisation and support from within due to familiar face at the top, but it is true that sometimes familiarity breeds contempt. In addition, there is possibility of previous conflicts with some good performers complicating or inflating into serious differences of opinions or rivalries. Nevertheless, it can be safely stated that succession planning is an important course of action at senior levels failing which an organisation can face tremendous difficulties i n the event of a sudden requirement to replace top executive. Further, once the successor is selected, the most important phase of his career planning or grooming for handling things at the highest level begins. Most family owned businesses lack in this professionally oriented grooming and training due to inherent complacencies of an assured future, which sometimes leads to complications due to personal rather than a proficient outlook. In extreme cases, this has even resulted in splitting up of large businesses into smaller units due to family feuds, sibling rivalries, and mutual disagreements over leadership and ownership aspects. In honest opinion of this author, such unpleasant dissections and associated negative publicities could have been avoided simply through proper succession grooming. Sadly, the lessons are never learnt and succession training to develop right competencies has never been given due importance. One aspect inhibiting proactive approach may be due to perceived and misplaced feeling of indispensability among the top management. The succession planning overcomes this very indispensability of an individual. Everyone becomes dispensable then. These conflicting perceptions can also lead to