EXECUTIVE SUMMARY

The project explains the concept of succession planning and how it is important for the successful functioning of a business. It proceeds to highlight the business functioning trend in India which mainly is about family businesses. But seeing the recent trend of few of the big Indian businesses opting for proper professionally planned succession planning, it isn‘t long when India will pick up this practice in every aspect. any recent examples of succession planning in the Indian businesses have been stated such as axis bank, Tata!s, Infosys, "#$%, &icher etc. 'ith main focus on urugappa group and Infosys succession planning. urugappa group of companies is a great example of family business training their heirs in a professional manner to lead the business where as Infosys shows how a proper committee should be formed for looking out for a successor well in advance.

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
(uman resources are the most valuable and uni)ue assets of an organi*ation. The successful management of an organi*ation+s human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. &ven though specific human resource functions,activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organi*ation. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organi*ation. (uman -esource anagement outlines the importance of (and its different functions in an organi*ation. It examines the various (- processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organi*ation.

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INTRODUCTION TO SUCCESSION PLANNING.
.uccession /lanning 0Thinking 1bout Tomorrow Today2 In organi*ational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players 3 such as the chief executive officer 4%&"5 3 within an organi*ation as their terms expire. 6rom the risk management aspect, provisions are made in case no suitable internal candidates are available to replace the loss of any key person. It is usual for an organi*ation to insure the key person so that funds are available if she or he dies and these funds can be used by the business to cope with the problems before a suitable replacement is found or developed. .uccession /lanning involves having senior executives periodically review their top executives and those in the next7lower level to determine several backups for each senior position. This is important because it often takes years of grooming to develop effective senior managers. There is a critical shortage in companies of middle and top leaders for the next five years. "rgani*ations will need to create pools of candidates with high leadership potential. .uccession planning involves a careful balancing of the concerns and needs of a firm!s founding and senior managers, on the one hand, and its more junior investment professionals and managers, on the other hand. The founding and senior managers want to be properly rewarded for their efforts in building and growing the firm, and this may include rights to continue to participate in fund economics after these managers have begun to wind down their active involvement. These desires must be balanced against the need to provide increased economic benefits and firm governance rights to junior managers and investment professionals in order to develop the next generation of managers for the firm.

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8efinition
.uccession planning can be broadly defined as identifying future potential leaders to fill key positions. 'endy (irsh9 defines succession planning as +a process by which one or more successors are identified for key posts 4or groups of similar key posts5, and career moves and,or development activities are planned for these successors. .uccessors may be fairly ready to do the job 4short7term successors5 or seen as having longer7term potential 4long7term successors5.+ 1ccording to (irsh, succession planning sits inside a very much wider set of resourcing and development processes called +succession management+, encompassing management resourcing strategy, aggregate analysis of demand,supply 4human resource planning and auditing5, skills analysis, the job filling process, and management development 4including graduate and high7flyer programmes5.

&nforcing the succession plan:
1 careful and considered plan of action ensures the least possible disruption to the person!s responsibilities and therefore the organi*ation!s effectiveness. &xamples include such a person who is: ; suddenly and unexpectedly unable or unwilling to continue their role within the organi*ation< ; accepting an approach from another organi*ation or external opportunity which will terminate or lessen their value to the current organi*ation< ; indicating the conclusion of a contract or time7limited project< or ; moving to another position and different set of responsibilities within the organi*ation.

%overage
"rganisations differ in si*e, scope and type, so it is difficult to point to any single

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model of succession planning. (owever, it is most common for succession planning to cover only the most senior jobs in the organisation, plus short7term and longer7term successors for these posts. The latter groups are in effect on a fast7track, and are developed through job moves within various parts of the business. This focus on the most senior posts 7 perhaps the top two or three levels of management 7 means that even in large organisations, only a few hundred people at any given time will be subject to the succession planning process. It also makes the process more manageable, because it is much easier to concentrate on a few hundred individuals rather than 4say5 several thousand. That said, however, many large organisations attempt to operate devolved models in divisions, sites or countries where the same or similar processes are applied to a wider population.

The role of HR
.uccession planning needs to be owned by line managers, and should be actively led by the chief executive who has a key role in ensuring that it is given the importance it deserves by other senior managers< ensuring that there is a healthy pipeline of potential leaders is about nothing less than the future of the organisation. But it is not realistic for %&"s and those around them to have sole responsibility for this< they have neither the time nor the expertise. The (- function therefore has a critical role in supporting and facilitating the process, not least in compiling all the necessary information on potential candidates. 1ny career move at senior level is a process of multiple dialogues, in which a senior representative from (- will collect views from senior line managers in an iterative fashion, testing, challenging and amending them as the dialogue goes on, making sure that all possibilities are covered, and maybe putting proposals for decision to a succession development committee. (- departments are of course also heavily involved in giving career advice and information to individuals, and assessing and advising on their development needs. The (- function is also centrally concerned in the design and management of assessment processes and information support, including the development and maintenance of computerised databases.

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IMPORTANCE OF SUCCESSION PLANNING
.uccession planning is an essential part of doing business, no matter how certain your future appears. It+s easy to put off planning when everything seems to be going so well, right= 'rong. #ow is the time to begin succession planning. (ere are some reasons why it can+t 3 and shouldn+t 3 wait:

You ca !" #la for $%&a&"er. #o matter how good you and your staff are
at revenue projections or economic predictions, no one can truly plan for disaster. 'hether it+s an unforeseen illness, a natural disaster, or a %&"+s decision to suddenly retire, the reasons for having a succession plan in place before it is needed are endless. .o while you can+t plan for disaster, you can put into place a series of contingencies that will help your company stay afloat if, in fact, catastrophe occurs.

Succe&&%o #la

% ' (e ef%"& "he (u&% e&& now. >ust as business

practices have evolved over the years, succession planning has also grown and changed. It+s no longer a plan that can only be accessed when leadership is going to change< a succession plan can be used before its ?real? intent is necessary. It can be used to build strong leadership, help a business survive the daily changes in the marketplace, and force executives to review and examine the company+s current goals.

Succe&&%o #la

% ' '%)e& *our collea'ue& a )o%ce. If you+re running

a family business, the process of succession planning will give family members an opportunity to express their needs and concerns. $iving them that voice will also help create a sense of responsibility throughout the organi*ation, which is critical for successful succession planning. -esist the temptation to solely carry the entire weight of creating and then sustaining a plan.

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A &ucce&&%o #la ca hel# &u&"a% % co+e a $ &u##or" e,#e &e&. Talking about money should be a priority. /eople generally don+t
want to work for free and things don+t pay for themselves. 1 succession plan can provide answers as to what you 3 and your staff 3 will need for future income, as well as what kinds of expenses you may incur once you step out of the main leadership role. 1sk yourself )uestions about your annual income and other benefits including health and dental insurance for you and your dependents, life insurance premiums paid for by the company, your car, professional memberships, and other business7related expenses.

Succe&&%o #la

% ' '%)e& *ou a (%' #%c"ure. .ome companies

mistakenly focus solely on replacing high7level executives. 1 good succession plan can go further, however, and force you to examine all levels of employees. The people who do the day7to7day work are the ones keeping the business going. #eglecting to add them to the succession planning mix could have dire conse)uences. 1s you develop your plan, incorporate all layers of management and their direct reports.

Succe&&%o #la

% ' &"re '"he & $e#ar"+e "al rela"%o &h%#&.
ake sure that you

'hen regular communication occurs between departments you are more likely to experience synergy, which breeds a culture of strength. link your succession planning activities with human resources. 1fter all, (- is about people. By including (- in succession planning, you can incorporate elements like the employee7evaluation process, which can help when deciding whether to fill vacancies with internal candidates.

Succe&&%o #la

% ' -ee#& "he +oo$ (uo*a ". %hange 3 a major

component of a succession plan 3 is exciting and can bring a company unforeseen rewards. .till, change can be a source of tremendous stress, especially when people+s livelihoods are at stake. 1s you put your succession plan together, consider its positive effects on the business. /lanning for the future is exciting and, if done correctly, can inspire your workers to stay

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involved and maintain company loyalty. It+s true that a plan is often put into place to avert catastrophe, but it+s also a company+s way of embracing the future 3 a business strategy that is essential for survival.

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SUCCESSION PLANNING PROCESS
.uccession planning recogni*es that some jobs are the lifeblood of the organi*ation and too critical to be left vacant or filled by any but the best )ualified persons. &ffectively done, succession planning is critical to mission success and creates an effective process for recogni*ing, developing, and retaining top leadership talent.

Succe&& fac"or&
There are several factors typically found in successful succession planning initiatives. 6or example: .enior leaders are personally involved. .enior leaders hold themselves accountable for growing leaders. &mployees are committed to their own self7development. .uccess is based on a business case for long7term needs. .uccession is linked to strategic planning and investment in the future. 'orkforce data and analysis inform the process. @eadership competencies are identified and used for selection and development. 1 pool of talent is identified and developed early for long7term needs. 8evelopment is based on challenging and varied job7based experiences. .enior leaders form a partnership with human resources. .uccession planning addresses challenges such as diversity, recruitment, and retention.

Effec"%)e &ucce&&%o #la

% '

The following information includes: ; 1 graphic representation of a six7step process for effective succession planning ; 1 table with descriptions of each step in this process.

S"e# ./ L% - S"ra"e'%c a $ 0or-force Pla
This step involves: Identifying the long7term vision and direction

% ' Dec%&%o &

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1naly*ing future re)uirements for products and services Asing data already collected %onnecting succession planning to the values of the organi*ation %onnecting succession planning to the needs and interests of senior leaders.

S"e# 1/ A al*2e Ga#&
This step involves: Identifying core competencies and technical competency re)uirements 8etermining current supply and anticipated demand 8etermining talents needed for the long term Identifying 0real2 continuity issues 8eveloping a business plan based on long7term talent needs, not on position replacement.

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S"e# 3/ I$e "%f* Tale " Pool&
This step involves: Asing pools of candidates vs. development of positions Identifying talent with critical competencies from multiple levels3early in careers and often 1ssessing competency and skill levels of current workforce, using assessment instrument4s5 Asing BCDE feedback for development purposes 1naly*ing external sources of talent.

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S"e# 4/ De)elo# Succe&&%o S"ra"e'%e&
This step involves: ; Identifying recruitment strategies: 7 -ecruitment and relocation bonuses 7 .pecial programs ; Identifying retention strategies: 7 -etention bonuses 7 Fuality of work life programs ; Identifying development,learning strategies: 7 /lanned job assignments 7 6ormal development 7 %oaching and mentoring 7 1ssessment and feedback 7 1ction learning projects 7 %ommunities of practice 7 .hadowing.

S"e# 5/ I+#le+e " Succe&&%o S"ra"e'%e&
This step involves: Implementing recruitment strategies 4e.g., recruitment and relocation bonuses5 Implementing retention strategies 4e.g., retention bonuses, )uality of work life programs5 Implementing development,learning strategies 4e.g., planned job assignments, formal development, %ommunities of /ractice5 %ommunication planning 8etermining and applying measures of success @inking succession planning to (- processes G /erformance management G %ompensation G -ecognition

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G -ecruitment and retention G 'orkforce planning Implementing strategies for maintaining senior level commitment.

S"e# 6/ Mo %"or a $ E)alua"e
This step involves: Tracking selections from talent pools @istening to leader feedback on success of internal talent and internal hires 1naly*ing satisfaction surveys from customers, employees, and stakeholders Assessing response to changing requirements and needs.

LEADERSHIP COMPETENCIES FOR SUCCESSION PLANNING

COMMUNICATION 7VER8AL 9 0RITTEN: Co++u %ca"e& effec"%)el* ;%"h o"her& % a o#e < "%+el* a $ &e &%"%)e +a er.

T*#%cal 8eha)%our&/
• 8emonstrates effective communication: listens generously, seeks to understand, provides feedback and communicates in a positive manner, and ensures others understand messages • • • &stablishes trust and credibility in working relationships through open, honest, consistent and fre)uent dialogue. "rgani*es, interprets and disseminates all information to internal and external audiences including complex work and advice clearly, concisely and plainly. %onsults with everyone affected, listens to all views and considers them fairly.

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DECISIVENESS
I& #roac"%)e a $ $e+o &"ra"e& "he a(%l%"* "o +a-e % for+e$< (ala ce$ $ec%&%o & % a "%+el* +a er a $ &"a $ (eh% $ "he+.

T*#%cal 8eha)%our&/
• • • • Anderstands fully the effect and conse)uences of each decision and stands accountable for decisions. 8eals with performance issues in a timely, fair and constructive manner 8emonstrates commitment to performance management in actions and words Takes decisive action,is proactive in moving initiatives forward or solving problems.

DISCRETION De+o &"ra"e& 'oo$ =u$'+e " T*#%cal 8eha)%our&/
• • • • .hows consistency balanced with fairness &nsures decisions are consistent with the directional focus of the Aniversity Ases conflict resolution skills effectively %onsiders all sides of an issue and balances all interests, including future impacts

LEADERSHIP OF THE DEPARTMENT>UNIT
Se"& a $ co++u %ca"e& $%rec"%o "o fur"her "he S"ra"e'%c U %)er&%"* Pla < &u##or"& "he $e#ar"+e " or u %" a $ #ro)%$e& a##ro#r%a"e o##or"u %"%e& for % $%)%$ual $e)elo#+e ".

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T*#%cal 8eha)%our&/
• &stablishes scope for decisions by individuals and balances this with need to make independent decisions. • 1dministers and supports staff development in a proactive, e)uitable and consistent manner. • • • /rovides recognition to support teamwork and individual contribution %ommunicates on behalf of the department,unit when re)uired &nsures the development and application of performance measures and targets to assess results • /rovides opportunities and promotes an environment that encourages continuous development • .upports Hcoaches,mentorsI others to take responsibility for achieving the highest possible levels of performance • Builds effective communication links with other departments and effectively facilitates resolution of issues,needs, which cross7departmental lines. • /ushes decision making down to the appropriate level and provides necessary guidance and support to other decision makers.

ORGANI?ATIONAL COMMITMENT
De+o &"ra"e& %$e "%f%ca"%o ;%"h< &u##or" a $ co++%"+e " "o "he or'a %2a"%o

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T*#%cal (eha)%our&/ • /uts aside personal preconceptions and self7interests and concentrates on the common goal and the betterment of the Aniversity. • • 8emonstrates pride in working for 1thabasca Aniversity .upports the Aniversity He.g. Its plans, policies, programsI in a positive constructive manner. • /romotes and acts with integrity in dealing with students and employees.

TEAM PLAYER
0or-& % all "*#e& of co++%""ee& a $ 'rou#&< &u##or"& "he co++%""ee or 'rou# a $ co "r%(u"e& "o %"& effec"%)e e&&.

T*#%cal (eha)%our&/
• • • • -espects and anticipates the needs, feelings, and opinions of others &ncourages discussion of issues and concerns %reates a sense of community< facilitates communication within the group -ecogni*es the value of teamwork

VISION
V%e;& curre " e)e "& a $ fu"ure #o&&%(%l%"%e& fro+ +ul"%#le #er&#ec"%)e&< $e)elo#& fu"ure or%e "e$ &ce ar%o& a $ co++u %ca"e& "he&e effec"%)el* "o o"her& % "he or'a %2a"%o . T*#%cal (eha)%our&/ • .uggests and embraces new methods and ideas that enhance the achievement of 1thabasca Aniversity!s vision.

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%learly understands and communicates the 1A vision as it applies to the department or unit.

Jeeps in mind the organi*ation context and direction, looks beyond the immediate environment for opportunities for improvements and enhancements.

%ontinually scans current and future environment and identifies themes and emerging issues.

ANALYTICAL>SYSTEMIC THIN@ING
Takes a logical approach to planning and problem solving and establishes priorities. 1naly*es issues and problems systematically and thoroughly. 6ocuses on critical details while maintaining a broad perspective.

• •

$rasps complexities and critical details )uickly and accurately 8evelops well7defined, step7by7step approaches to analy*e and solve complex problems.

Identifies relevant alternative and evaluates the potential conse)uences of each before taking action

akes an effort to solve common problems by drawing from previous experience or similar circumstances.

1ssembles and integrates information from a variety of sources to present what is relevant to a given issue or situation.

ACCURACY AND THOROUGHNESS
Ma-e& &ure "ha" ;or- %& $o e correc"l*< co+#le"el*< a $ ;%"h h%'h Aual%"* % a "%+el* +a er.

T*#%cal (eha)%our&/

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Kerifies assumptions and information by checking with credible sources, experts or first hand experience.

• • •

%arefully reviews own work for accuracy and completeness %arefully reviews other people!s work for accuracy and thoroughness. Identifies and addresses all details that are needed to ensure smooth functioning

6ollows up to make sure that tasks have been completed and others have met commitments.

SERVICE ORIENTATION
A "%c%#a"e& a $ re&#o $& "o "he ee$& of % "er al a $ e,"er al cu&"o+er&. De)elo#& a $ +a% "a% & &"ro ' rela"%o &h%#& ;%"h % "er al a $ e,"er al cu&"o+er&.

T*#%cal (eha)%our&/
• • -esponds promptly to customer needs or re)uests of others &xpends significant time and effort to meet important commitments made to internal or external customers • • "ffers unsolicited help to those in need. Takes advantage of opportunities to present examples and scenarios illustrating importance of client service • • /resents examples and,or suggestions on how to improve services to customers /resents arguments and,or suggestions that convince clients that their interests are being well served.

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CONFIDENCE
De+o &"ra"e& a 'e u% e (el%ef % "he l%-el%hoo$ of #er&o al &ucce&& a $ co++u %ca"e& a #o&%"%)e &elfBe&"ee+ "o o"her&.

T*#%cal (eha)%our&
• • • %reates a feeling of confidence in the department or units ability to provide timely and )uality service. .hows strong assertiveness skills when dealing with customers and peers. 8emonstrates a genuine belief in the likelihood of personal success.

PERSERVERANCE
Co "% ue& &"ea$fa&"l* "o;ar$ re&ul"&>o(=ec"%)e& u "%l "he $e&%re$ re&ul" %& ach%e)e$ or %& o lo 'er rea&o a(l* a""a% a(le.

T*#%cal (eha)%our&/
• • @eads by example, ensuring actions are implemented and goals are achieved 6ocuses on outcome, allows flexibility on how the outcome is achieved.

ADVANTAGES OF SUCCESSION PLANNING
.uccession planning is an essential part of doing business, no matter how certain your future appears. It+s not easy to put off planning when everything seems to be going so well. (ere are some reasons why it can+t 3 and shouldn+t 3 wait:  Lou can+t plan for disaster.  .uccession planning benefits the business now.  .uccession planning gives your colleagues a voice.  1 succession plan can help sustain income and support expenses.

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 .uccession planning gives you a big picture.  .uccession planning strengthens departmental relationships.  .uccession planning keeps the mood buoyant. Besides the obvious benefit of not leaving your company in the lurch of proper .uccession /lanning will help your company in other ways, too. (ere!s a rundown of the benefits. -emember, not all benefits will apply, depending on your specific situation. .uccession /lanning can:  -educe taxes, in some situations with family7owned businesses. 6or example, if a company gets new ownership after an owner+s death, lack of planning can result in steep estate taxes. "ther tax issues, such as transferring ownership to a child, might apply.  &nsure continuity. %ustomers, clients, vendors, and employees all want and need to know that a business will continue to function as they know it, even when there!s a leadership change. %hoosing and grooming a successor who fits your mold will help this happen.  /rovide training plan for possible successors. If you identify who you might choose as a successor early, you!ll know that that person needs more training and one7on7one time with your current leader to gain as much knowledge for the position while it!s still possible.  (elp you plan for the future direction of the company.

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MISTA@ES TO 8E AVOIDED IN SUCCESSION PLANNING.

any mistakes are commonly made in establishing succession planning programs. They are worth enumerating. It is also worthwhile to describe some ways to avoid these common mistakes.  A&&u+% ' "ha" Succe&& a" O e Le)el 0%ll Guara "ee Succe&& a" H%'her Le)el&. 1n individual!s success at one level is no guarantee of success at higher levels of responsibility. The reason is simple: the competencies re)uired for success at each level are different. (ence, it is important to separate thinking about how well someone does his or her current job and how well he or she might do a job at a higher responsibility level.  A&&u+% ' "ha" 8o&&e& Are Al;a*& "he 8e&" Cu$'e& of 0ho I& Pro+o"a(le. 1 second mistake is to assume that, for purposes of succession planning, bosses are always the best judges of who is promotable. That is not always true. Bosses are self7interested players in the succession game. They have a stake in what happens to people. Indeed, some bosses do not want to see their

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best people promoted for fear of an inability to replace them. .ome bosses grade people by their own standards 7 with the result that some individuals who are )uite unlike the boss are not considered for promotion. 'hile the support of a boss is useful in developing individuals, more objective assessments, such as multi7rater assessment are excellent in aiding the manager!s assessment.  A&&u+% ' "ha" Pro+o"%o & Are Re;ar$&. .ome employees have an entitlement mentality in which they feel that long service with an organi*ation should always be rewarded with promotions. But business decisions must be based on who will do the best job, not who is 0owed2 a promotion because of greatest seniority. 'orkers must continually be reminded that doing jobs at each level re)uires different competencies, and the best way for them to compete is to prepare for future challenges rather than expect promotions for past performance at a different level of responsibility.  Tr*% ' "o Do Too Much Too Fa&". The strong results7orientation of many organi*ations today emphasi*es )uick results. .enior leaders expect to see all the components of a comprehensive succession system in place immediately. That is not always realistic. It is advisable to think of implementing systematic succession in a phased way 7 either from the top down or else starting in specific divisions or locations with greatest need.  G%)% ' No Thou'h" "o 0ha" "o Call I". 1 fifth mistake is to devote no time to considering what to call the succession program. 1s any marketer knows, product names do matter. It is not necessary to call a spade a spade. any organi*ations choose alternative namesGsuch as 0leadership development program,2 0human capital management program,2 or even 0talent program.2  A&&u+% ' "ha" E)er*o e 0a "& a Pro+o"%o . 1 sixth mistake is to assume that everyone wants a promotion. That is not always true today. In many downsi*ed organi*ations, workers have seen what pressures their bosses have to deal with. .ome say 0leave me out of that.2 (ence, it is unwise to assume

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that everyone wants a promotionGor even to assume that money will convince everyone. It will not. %heck first. 6ind out what people want to do. 6or that reason, many organi*ations launch both a top7down succession planning program and a bottom7up career planning program to galvani*e development  @ack of understanding how it works and how it benefits the organi*ation.  @ack of a formal written plan for the person or position4s5.  @ack of availability of human and financial resources< lack of budgetary commitment.  .uperficial approach< lack of real understanding of the procedures, processes and re)uirements of each area the individual is exposed to during the process.  The re)uirements of the anagers,&xecutives are not fulfilled in providing

dedicated instructions, guidance regarding skills, knowledge and abilities needed for the candidates to be successful.  6ailure to identify key employees who may have concerns with your succession plan.  6ailure to plan for disability.  1 rigid, inflexible plan #"T tailored to the needs and abilities of the personnel involved.  Too long a wait for real movement,promotion, disillusionment, may result in some people leaving due to apparent inertia in the system.  .election of un)ualified or unmotivated people for inclusion in the .uccession /lan. Fuality of the individuals selected is paramount to the success of the process.

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 %omplex program, re)uiring considerable paper work, follow7up, reporting

SUCCESSION PLANNING/ THE INDIAN PERSPECTIVE
%ompanies in India have approached succession planning in different ways and experience has shown that few have built strategies that encompass the three critical facets of the exercise: board succession, %&" succession and building a leadership pipeline. Three categories of company exist in India : first, the widely held and professionally managed companies< second, the family7promoted,family7controlled companies, but with significant holding by minority shareholders< third, government companies where

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there is a significant minority holding. "wing to the differences in structure and functioning of these companies, succession planning strategies could differ, though the issues tend to remain the same. The roundtable discussion detailed here addressed each of the above facets< it contains numerous insights as well as )uestions regarding the state of succession planning in India. .uccession planning is a challenge across the globe G but particularly so in India. Indian leaders, while highly adaptable and strongly entrepreneurial, generally perform poorly in terms of teamwork and succession planning. Infact, the J6I,&conomist survey ranked Indian leaders among the lowest performers on this count. This is evident in the fact that today, fewer than MDN of Indian businesses work to develop future leadership, or to engage actively in succession planning. .trong Indian leadership has been emerging across multinational companies 4both Indian and foreign5, but these competitive traits, and the drive to succeed in global markets, have not yet been focused on developing people. India now re)uires its leaders to work towards nurturing its pool of future managers, instead of merely driving their companie

A STUDY ON INFOSYS SUCCESSION PLANNING INTRODUCTION
Infosys Technologies @imited is a multinational information technology services company head)uartered in Bangalore, India. It is one of India+s largest IT companies with 9DO,POB professionals 4including subsidiaries5 as of #ov Q, MDDQ.It has offices in MM countries and development centers in India, %hina, 1ustralia, AJ, %anada and >apan. Infosys was founded on >uly M, 9QR9 in /une by # - #arayana urthy and six others:, #. .. -aghavan, Jris $opalakrishnan, .. 8. .hibulal, J. 8inesh and 1shok 1rora,I with #. .. -aghavan officially being the first employee of the company.

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#andan #ilekani urthy started the company by borrowing I#- 9D,DDD from his wife .udha urthy. The company was incorporated as ?Infosys %onsultants /vt @td.?, with -aghavan+s house in odel %olony, north7central /une as the registered office. In 9QRM, Infosys opened an office in Bangalore, which soon became its head)uarters. Infosys head)uarters in Bangalore, India. Infosys went public in 9QQB. Interestingly, Infosys I/" was under subscribed but it was ?bailed out? by A. investment banker organ .tanley which picked up 9BN of e)uity at the offer price of -s. QO per share. The share price surged to -s. R,9DD by 9QQQ making it the costliest share on the market at the time. 1t that time, Infosys was among the MD biggest companies by market capitali*ation on the #1.81F well ahead of 1dobe .ystems, #ovell and @ycos. 1ccording to 6orbes maga*ine, since listing on the Bombay .tock &xchange till the year MDDD, Infosys+ sales and earnings compounded at more than SDN a year. In the year MDDD, /resident of the Anited .tates Bill %linton complimented India on its achievements in high technology areas citing the example of Infosys.

I fo&*& Tech olo'%e& L%+%"e$
TYPE 8SE NASDAD FOUNDED 7 7 7 7 /ublic ODDMDQ Infy >uly M,9QR9 Banglore,India

HEAD DUARTERS 7

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@EY PEOPLE

7

#.-.#arayana urthy 4chairman5 Jris $opalakrishna 4%&"5 T 48irector5 .oftware services IT service Information Technoly services T solutions A.UB.9C billion4MDDQ5 A.U9.9C billion4MDDQ5 7 7 9,DB,QDO4MDDQ5 Infosys.com

INDUSTRY PRODUCTS SERVICES consulting REVENUE NET INCOME EMPLOYEES 0E8SITE

7 7 7 7 7

H%&"or* of I fo&*&
&stablished in 9QR9, Infosys is a #1.81F listed global consulting and It services company with more than 9DO,DDD employees. 6rom a capital of A.U MOD. Infosys have grown to become a A.U P billion company with a market capitali*ation of approximately A.U MS billion. In their journey of over MR years, they have cataly*ed some of the major changes that have led to India!s emergence as the global destination for software services talent. Infosys pioneered the $lobal 8elivery of India!s first salaried millionaires. In MDDR Infosys crosses revenues of A.U P.9R billion. &mployees grow to over QD.DDDV and -eports FP revenue of A.U 9,9PM million. odel and became the first IT %ompany from India to be listed on #1.81F. Their employees stock options program created some

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Infosys has a global footprint with over OD offices and development centers in India, %hina, 1ustralia, the %*ech -epublic, /oland, the AJ, %anada and >apan. Infosys and its subsidiaries have 9DO,POB employees as on .eptember BD, MDDQ. Infosys takes pride in building strategic long7term client relationship. "ver QSN of our revenues come from existing customers.

M%&&%o a $ V%&%o S"a"e+e "
MISSION STATEMENT/B 0To achieve company!s objective in an environment of fairness, honesty, and courtesy towards their clients, employees, vendors and society at large2 This statement includes the major element such as corporate characters, stakeholders as well as its social responsibilies. VISION STATEMENT/B The vision statement of Infosys is 0to be a globally respected corporation that provides best7of7breed business solutions, leveraging technology, delivered by best7in7class people.2

Ser)%ce& Offere$ (* I fo&*&  1pplication 8evelopment and  %orporate /erformance aintenance,

anagement,

 &nterprise Fuality .ervices,  /ackage 1pplication .ervices,  /roduct &ngineering,  .ystem Integration @% $& of I $u&"r%e&  1erospace and 8efense  1utomotive

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 Banking and %apital

arkets

 %ommunication .ervices  %onsumer /ackaged $oods  8iscrete  &nergy  (ealthcare  (igh Technology  (ospitality and @eisure  Insurance  @ife .ciences  edia T &ntertainment anufacturing

 -esources  -etail  Transportation .ervice

Ma=or Ach%e)e+e "& of I fo&*&
495 4M5 4B5 4P5 4O5 6irst Indian %ompany to be listed in #1.81F. 6irst company to be awarded the 0#ational 1ward for &xcellence in %orporate $overnance2 conferred by the $overnment of India in MDDD. -ated Best &mployer in India in a study by Business Today7(ewitt 1ssociates in MDD9. 6irst rank in the Business 'orld!s survey of 0India!s %ompany2 in MDDM. Infosys achieved the 0-eady for 'eb sphere2 and 0-eady for @otus2 accreditations for 8om sphere /ortal >anuary this year. 4C5 In MDDQ, Infosys was considered one of the Business 'eek!s OD Innovative %ompanies. ost anager whilst at @otusphere MDDQ 4the premier event for the @otus and 'eb sphere /ortal community worldwide5 in ost -espected

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4S5

Infosys won the $lobal

1J& 4 ost 1dmired Jnowledge &nterprise5 award,

for the years MDDB, MDDP and MDDO, being the only Indian company to win this award and is inducted into the $lobal (all of 6ame for the same. 4R5 In 1pril MDDQ, 6orbes rated Infosys among the O best performing companies in the software and services sector in the world.

(- policies in infosys
Internally developed code of conduct and policies to guide us The following policies on various sustainability issues are adopted uniformly through out the reporting entity .

(IK 4V5 T 1I8. %"#T-"@ /"@I%L
Infosys would take measures to prevent the incidence and spread of (IK and 1I8. in the society. In case of need, the company would arrange to provide counseling and medical guidance to these patients and their families.

FA1@ITL /"@I%L
%onsistent with the group purpose, Infosys shall constantly strive to improve the )uality of life of the communities it serves through excellence in all facets of its activities. 'e are committed to create value for all our stakeholders by continually improving our systems and processes through innovation, involving all our employees. This policy shall form the basis of establishing and reviewing the Fuality "bjectives and shall be communicated across the organi*ation. The policy will be reviewed to align with business direction and to comply with all the re)uirements of the Fuality anagement .tandard.

&#KI-"# &#T1@, "%%A/1TI"#1@ (&1@T( T .16&TL /"@I%L
Infosys reaffirms its commitment to provide safe working place and clean environment to its employees and other stakeholders as an integral part of its business philosophy and values. 'e will continually enhance our &nvironmental, "ccupational (ealth T .afety 4&(.5 performance in our activities, products and services through a structured &(. management framework. Towards this commitment, we shall< W &stablish and achieve &(. objectives and targets. W &nsure compliance with applicable &(. legislation and other re)uirement and go beyond. W %onserve natural resources and energy by constantly seeking to reduce consumption

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and promoting waste avoidance and recycling measures. W &liminate, minimi*e and,or control adverse environmental impacts and occupational health and safety risks by adopting appropriate ?state7of7the7art? technology and best &(. management practices at all levels sand functions. W &nhance awareness, skill and competence of our employees and contractors so as to enable them to demonstrate their involvement, responsibility and accountability for sound &(. performance.

(A 1# -&."A-%& /"@I%L
Infosys recogni*es that its people are the primary source of its competitiveness. It is committed to e)ual employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce. It will pursue management practices designed to enrich the )uality of life of its employees, develop their potential and maximise their productivity. It will aim at ensuring transparency, fairness and e)uity in all its dealings with its employees. Infosys will strive continuously to foster a climate of openness, mutual trust and teamwork.

1@%"("@ 1#8 8-A$. /"@I%L
Infosys believes that the loyalty and commitment of its employees depend upon the )uality of life they are offered at work and at home. 'e recogni*e that indiscriminate use of alcohol and drugs is injurious to the wellbeing of individuals, their families and the community as a whole. 'e acknowledge that the misuse of these psychoactive substances is a major health and safety ha*ard. Infosys is therefore committed to creating an alcohol and drug7free environment at the work place. This would be achieved through the involvement of all employees and the >oint 8epartmental %ouncils in spearheading appropriate initiatives. The initiatives would include< W -aising awareness, through the dissemination of information, education and training and by promoting healthy life styles among our employees and their families. W otivating those employees who have an alcohol,drug problem, to seek assistance, while maintaining confidentiality about such cases.

-&.&1-%( /"@I%L
Infosys believes that research provides the foundation for sustained, long7term, stakeholder delight. Infosys shall nurture and encourage innovative research in a creative ambience to ensure that the competitive advantage in its overall business is retained and surpassed. Towards this goal, the %ompany commits itself to providing all necessary resources and facilities for use by motivated researchers of the highest calibre. -esearch in Infosys shall be aligned to the technological initiatives necessary to evolve and fulfil the overall business objectives of the %ompany.

%"-/"-1T& ."%I1@ -&./"#.IBI@ITL /"@I%L
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Infosys believes that the primary purpose of a business is to improve the )uality of life of people. Infosys will volunteer its resources, to the extent it can reasonably afford, to sustain and improve healthy and prosperous environment and to improve the )uality of life of the people of the areas in which it operates.

&#&-$L /"@I%L
Infosys reaffirms its commitment to conserve scarce energy resources and shall endeavor to7 W %omply with national and international regulations. W 1dopt best available technology for energy efficiency. W Implement world7class operating practices. W %onduct regular &nergy 1udit for continual improvement. W /romote energy efficiency through mass awareness.

CONCLUSION
1t the end of the day, the crux of the issue lies in the fact that it is the shareholders‘ representatives who should own the succession planning process. %orporate India is placed at a critical juncture where the massive inflow of funds will reflect in the gradual change from concentrated ownership 4$overnment, /romoter families5 to a more diffused and diverse ownership pattern. -egardless of the ownership structure of a company, the shareholders‘ representatives 4company Board or the 4cabinet of ministers or patriarchs of /romoter families5 will need to create mechanisms and processes to constantly groom a leadership

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pipeline and to identify the best candidate G internal or external G for leading the company into the future and creating shareholder value. .o Indian companies have finally taken their first step of understanding the importance of succession planning and taking necessary steps to put it into action for the welfare of the company and its shareholders against the age old practice followed in India of handing the heir the reigns of the company. There are a number of areas to keep our eye on as part of our succession planning activities.

8I8LIOGRAPHY
www.google.com www.scribd.com www.economictimes.com www.managementparadise.com www.infosys.com www.murugappa.com www.mumbaispace.com

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