INTEGRAL UNIVERSITY

LUCKNOW

Assignment – 1

Subject code – BM333

Subject – Personnel Management

Year – 2022-2023

Submitted by –

Mohd Osama Sami

BBA 3RD year

[Group – B]

Enrollment – 2000100401
Ques 1) Discuss one Indian and one international example one
succession planning.

DR REDDY’S LABORATORIES
A GOOD EXAMPLE OF SUCCESSION PLANNING

Relinquishing control can often be difficult for company founders, but one Indian
family business head is currently in the process of ensuring succession at his firm
goes well.

Anji Reddy, founder and chairman of Dr Reddy’s Laboratories, transferred the

shares he personally holds in the Indian pharmaceutical company to the Reddy
family’s holding company late last year. This was in a bid to ensure “smooth
succession” at the Hyderabad-based firm, said Kavil Ramachandran, professor of
family business and wealth management at the Indian School of Business.

In total, Reddy transferred a 0.35% stake in Dr Reddy’s Laboratories, India's

second-biggest generic drugs firm, to the holding company, which controls 23.4%
of the pharmaceutical business.

The transfer took place in November but it was only reported to the Bombay
Stock Exchange on 23 January.
The figures may seem small, but according to Ramachandran, the transfer was
important because it showed Reddy trusted the next generation to run the
business and control the family fortune.

“The current decision has to be seen as a natural progression in smooth

succession,” Ramachandran told CampdenFB.

“By transferring shares to the holding company, he has ensured that the wealth
goes to the full family and no one else,” he added.

Reddy effectively left the management of the company to his son, Satish Reddy,
and son-in-law, GV Prasad, a few years ago, Ramachandran said. Since then, the
second generation has focused on developing operations and the business’s
strategy, while the patriarch has worked on research.

Satish Reddy is the company’s managing director and chief operating officer,
while GV Prasad serves as vice-chairman and chief executive.

Both are possible candidates to take over the chairmanship of the family business,
which Reddy founded in 1984 with just 25 million rupees (€38,360).

He is often credited with turning around Indian’s drug sector, which in the 1980s
was heavily dependent on imports but is now an export-oriented industry.
In the financial year 2010-2011, the company reported revenues of 74,693 million
rupees (€1.3 billion), a 6% increase on the previous year.

IBM
IBM created a long-term succession plan when promoting Virginia Rometty to
CEO to replace Samuel Palmisano in 2011. Rometty had started working in an
entry-level position at the company 30 years prior to her promotion and had
worked her way up over time before attaining the CEO position. 

Rometty was key in this role until her retirement in 2020, and IBM’s succession
plan enabled the smooth transition of power to Rometty’s successor, Arvind
Krishna. In each situation, the company was able to maintain continuity by:

 Establishing professional development pathways.

 Cultivating a positive company culture.

 Allowing candidates to compete at the same level.

Three decades is an extreme case of long-term succession planning, since

employees change jobs an average of 12 times over the course of their career and
the median number of years a private-sector employee stays with one company is
only 3.7 years. 

Perhaps a more realistic example is Barneys New York’s five-year succession plan
to prepare Daniella Vitale to become its CEO. The former CEO had already worked
with her for many years and intentionally gave her opportunities to grow at
Barneys before officially appointing her as successor.

Requirements for long-term succession planning

Recognizing that this strategy takes time—but not necessarily 30 years—
companies can recognize and nurture high-performing employees early on and
implement career pathways. Long-term succession planning requires a number of
ingredients that maximize employee retention:

 A supportive company culture with competitive benefits.

 Performance and talent management tools that help managers identify top
internal talent early on.

 Robust learning and development programs that are personalized to

employees’ goals and strengths.

Though requiring sustained effort, long-term succession planning is more effective

than getting caught off guard with someone leaving and scrambling to train an
employee to take their place.

Ques 2) Discuss your career goals and aspirations. What step

will you take for your career planning?

My goal for many years was to become a manager. I achieved that last year. Now
as I look forward in my career, I’d like to build and manage larger teams and
continue advancing as a leader. I’ve found I really enjoy mentoring and leading a
team, even more than I enjoyed working as an individual contributor earlier in my
career. When I saw your job description mentions a chance to hire and lead a
team of five, I knew I should apply.

Mohd Osama Sami

2000100401