UNIT II

SUCCESSION AND
CAREER PLANNING
SRUJANA AK
Succession Planning
• Succession Planning is defined as the systematic process
of recognizing and creating future leaders who are able
to take the position of the old ones when they leave the
organization due to retirement, resignation, termination,
transfer, promotion or death.
• The process ensures that business continues to operate efficiently
without the presence of people who were holding key positions as they
must have retired, resigned, etc....
Need for Succession Planning

• Succession Planning, specifically termed as Management Succession

Planning, involves coaching and development of prospective
successors or people within a firm or from outside to take up key
positions in an organization through an organized process of
assessment and training.
• And so to be at the safer side, a succession plan is developed
to analyze the vacancies which might take place when an
employee leaves the organization, the business areas which
might be affected, job requirements and the skills of the
existing incumbent.
• Hence, there is a need for strategic planning, to determine
where and how viable employees can fill the vacant
positions.
Cond…
1. Identifying Key Business Areas and Positions: First and foremost, the key business
areas are identified, i.e. the areas which are significant with respect to the operational
activities and strategic objectives. After that, those positions are identified which if vacant
can cause difficulty in achieving business objectives.
2.Ascertaining Competencies for Key areas and positions: Next, you need to determine
the required competencies for key business areas and position, in order to create the
selection criteria, establish performance standards and fill the difference between what
the viable successors know and what they need to know, through the training and
development process. It determines the knowledge, skills, ability and experience required
to achieve business goals.
3.Find out the interested and potential candidates and assess them as per the
competencies: After competency is analyzed, the next step is to identify among various
employees working in the organization, who are interested as well as they have the
capability to fill key business areas and positions. The Human Resource Manager discusses
future career plans and interests with the candidates and identifies the potential
successors who are ready to replace the old ones and can be trained and developed for
future contingencies.
4.Develop and Implement Succession Strategies: Strategies for learning, training,
development, knowledge transfer, experience sharing is developed and implemented for
potential successors.
 Cond…
5. Evaluate Effectiveness: The last step to the succession
planning process is to evaluate the succession planning and
management, to ensure that all the key business areas and
positions are covered under the succession planning. Further, it
also ensures that in case of any sudden vacancies in future, key
positions can be filled as soon as possible and the successors
perform effectively when they hold the position.
• Therefore, Succession Planning is all about developing a
leadership substitute, for a perpetual succession of the
organization without any kind of disturbance, when there are
changes in the top management.
 Traditional Approach of Succession Planning

• Focus is limited to executive-level positions.

• Focus is on identifying immediate and short-term replacements.
• Plans are limited to identifying one or two potential successors for senior
positions.
• Plans are linked to individual job requirements.
• Potential candidates are identified based solely on feedback from their
immediate supervisor.
• Succession planning is done in isolation from other HR disciplines (e.g.
diversity initiatives, recruitment, and learning, training and development).
contemporary approaches to succession planning
Armstrong (2001) has modified the phases of traditional human resource
planning to reflect aims more appropriate for contemporary circumstances.
He outlines these aims as:
• to attract and retain the number of people required with the appropriate
skills, expertise and competences;
• to anticipate problems of potential surpluses or deficits of people;
• to develop a well-trained and flexible workforce, thus contributing to the
organization's ability to adapt to an uncertain and changing environment;
• to reduce dependence on external recruitment when key skills are in short
supply by formulating retention and development strategies;
• to improve the utilization of people by introducing more flexible systems
of work.
Cond…
• Business strategy: The first key element of this model is business strategy. Strategy has been defined as:
Business strategy can be either deliberate or emergent (Whittington, 1993). Deliberate strategies assume a
rational evaluation of external and internal circumstances and an identification of the best way to ensure
competitive advantage.
• Resourcing strategy: In this model the resourcing strategy derives from the business strategy and also feeds
into it. For example, the identification of particular strengths and capabilities might lead to new business
goals, especially if strategy formation is emergent rather than deliberate.
• Scenario planning: This element is not explicit in traditional HRP models and reflects a development in
planning models designed to cope with increased uncertainty and unpredictability in the environment.
Scenario planning can be used to supplement or replace more traditional demand and supply forecasting.
this can in itself lead to problems of information overload and difficulties in how to respond to the results.
Porter (1985) suggests five key options:
• Bet on the most probable one.
• Bet on the best one for the organisation.
• Hedge bets so as to get satisfactory results no matter which one results.
• Preserve flexibility.
• Exert influence to make the most desirable scenario a reality.
 Cond…
• Forecasting and labor turnover: Demand and supply forecasting in the model includes all the objective
and subjective techniques described in the traditional model. The key difference lies in the emphasis
given to labor turnover analysis; in the traditional model this is seen as an element of supply forecasting
but here it is deemed worthy of its own category. Nevertheless, the techniques used to measure it are the
same.
• Human resource plans: Human resource plans are derived from the resourcing strategy and take into
account data from a combination of scenario planning, demand and supply forecasting and labor turnover
analysis. The model again reflects the lack of certainty and predictability: ‘the plans often have to be
short term and flexible because of the difficulty of making firm predictions about human resource
requirements in times of rapid change’. The plans are divided into four broad areas: resourcing,
flexibility, retention and downsizing.
Resourcing plan
This is primarily concerned with effective use of the internal labour market as well as attracting high-quality external applicants
identifies two main components to the resourcing plan: the recruitment plan (e.g. numbers and types of people required, sources of
candidates, recruitment techniques, etc.) and the ‘employer of choice’ plan.
 Cond…
Flexibility plan The flexibility plan is likely to involve the use of functional and numerical flexibility
(discussed more fully in Chapter). Armstrong (2001: 376) suggests that the aim of the flexibility plan
should be to:
• Provide for greater operational flexibility;
• Improve the utilization of employees’ skills and capabilities;
• Reduce employment costs;
• Help to achieve downsizing smoothly and avoid the need for compulsory redundancies;
• Increase productivity.
The retention plan :‘today’s high performers are like frogs in a wheelbarrow: they can jump out at any time’. It seems
that increasing numbers of organizations recognize this and are turning their attention to the retention of key staff.
• The exact components of the retention plan will be largely determined by the outcomes of labour turnover analysis
and risk analysis and initiatives are likely to focus on ‘pull’ factors.
Retention measures can include: Pay and benefits , Recruitment and selection, Training and development , Job design , Management
Retention measures can include some or all of the following
• Pay and benefits – competitive rates of pay, deferred compensation (e.g. share
options, generous pension scheme), retention bonuses, flexible benefits, benefits
package that improves with service.
• Recruitment and selection – set appropriate standards, match people to posts,
provide an accurate picture of the job.
• Training and development – good induction processes, provision of development
opportunities to meet the needs of the individual and the organization, structured
career paths.
• Job design – provision of interesting work, as much autonomy and teamworking
as possible, opportunities for flexible working to meet the needs of the individual.
• Management – ensure managers and supervisors have the skills to manage
effectively. Attention to the skills and abilities of managers is perceived by some
as a key element of retention: ‘put simply, employees leave managers not
companies
Cond…

• Downsizing plan: The fourth element of the human resource plan is

the downsizing plan. This is concerned with the numbers to be
‘downsized’, the timing of any reductions and the process itself.
Methods of reducing the size of the workforce include natural
wastage, redeployment, early retirement, voluntary and compulsory
redundancy
Talent Acquisition

• Talent acquisition is the process of attracting, finding and hiring

skilled human labor for organizational needs in order to meet labor
requirements.
• Definition: In the process of talent acquisition (TA), the mail goal is to
recognize and meet all the labor requirements a company may have.
When used in the context of the recruiting and Human Resources
(HR), talent acquisition usually refers to the talent acquisition
department or team within the Human Resources department.
• Talent Acquisition teams are usually responsible for finding,
acquiring, assessing, and hiring candidates to fill open job position.
Talent acquisition process

• Developing a specific talent acquisition strategy

• Build Talent Pipelines
• Build strong Employer Branding
• Talent relationship management
• Recruitment
Cond…

Developing a specific talent acquisition strategy : Based upon each company’s situation, this
necessitates TA strategists building an intimate knowledge of the industry that the company serves,
as well as the company’s ongoing workforce needs.
• This is essential to understand where the company is on the market, who your competitors are, and
what their budget is, as well as think about the methods that work best based on the budget of your
company.
• Then, using the information collected, you need to come up with an effective plan covering what
needs and can be done, and where and how you will find the talent you need to reach your goals.
Build Talent Pipelines: Because the acquisition of talent is a continuous process, a good talent
acquisition strategy depends on a steady stream of talent.
• And the only way to ensure that a constant flow of talent into the organization is by building talent
pipelines that you can tap on an ongoing basis.
• So, it is important to create a talent pipeline and ensure that it works well at all levels from brand
awareness to hire.
• If something in the pipeline is broken or not working well, then you need to make improvements
accordingly.
 Cond…

Build strong Employer Branding: Corporate branding holds the key to successful Recruitment
Marketing and Talent acquisition in the end.
• A company’s brand often makes prospective candidates aware of who the organization is, and what they
have to offer.
• Without such awareness, talented individuals won’t consider working for that company.
Talent relationship management :
• Before an organization commences active recruitment, there is a need to “sell” the company to talented
individuals, as a good place to work in.
• Top-talent might be actively (or passively) looking for new opportunities, but they are also conscious
about what they want in terms of the quality and reputation of new workplaces.
Recruitment: The next stage, Recruitment, involves five states covering:
1. Candidate sourcing – where you actively scan potential pools of candidates;
2. Lead nurturing – which involves cultivating a pipeline of potential candidates;
3. Candidate selection – which is a process of short-listing prospective candidates to be acquired;
4. Interviewing – where interactions with short-listed candidates result in final selection decisions;
5. Onboarding – which is a process of assimilating selected candidates into the company.
Talent identification and business alignment
• Identifying talent for development requires not only an accurate
evaluation of their current performance, but their potential to fulfill the
requirements of more demanding positions. It is hard enough for
organizations to get a handle on measuring performance, let alone
potential.
(or)
• The purpose of a talent identification program is to firstly, identify
those that can potentially become elite competitors, and then secondly,
provide these individuals with the opportunity to join a training
environment where they can go on and develop, in order to bring
success to that team/sport/governing body.
Cond…
• From organizational point of view people and its proper management must come first.
Interestingly it is the opposite in reality. Without the right person at the right place an organization
may fail to gain the right growth.
• Every standard organization has its 'management' to run in order to reach its vision. Management
is the process or system relating to the functions of planning, organizing, directing and controlling,
and the application of these principles in harnessing physical, financial, human and informational
resources efficiently and effectively to achieve organizational goals.
• Each employee in each functional department has to possess two major skills: Hard Skills
(sometimes it is called technical skill) and Soft Skills (consisting of conceptual and human
skills). Surely along with these two skills 'right attitude' and 'knowledge' complete his or her
'competence'.
alignment of talent management to business strategy

• It begins with a careful analysis of an organization’s strategic

and operational goals and objectives.
• Based on this analysis, the management team, in
partnership with HR, can identify and understand the
implications on talent strategy and planning.
• Once the team understands how the business objectives will
impact the organization’s talent, they can then define specific
talent goals and initiatives and formulate their talent
strategy and commitments, which may include:
Which may include…
• Communicating and engaging employees in the
organization’s business strategy;
• Implementing a leadership development program for high
potentials;
• Developing a strategy for succession planning;
• Conducting assessments at all levels of the organization to
determine skills gaps;
• Providing comprehensive training that addresses skills gaps;
• Matching performance goals to business strategy and
rewarding employees who meet their goals;
• Designing recruitment programs to identify and attract the
right talent.
Recruiting and Assessment
• Selection and recruitment process for any job is a crucial process
because it affects the future performance of an institution or a
company.
• Selection of a wrong candidate can ruin an organization while right
candidate can take his/her organization to new heights.
• To attract and retain the talent your organization needs to be successful
in today’s market, it is critical that your recruiting methodologies are
strategic, efficient, and effective while still meeting the budgetary
demands of your business.
• By reviewing your current talent acquisition practices, processes, and
procedures, we can identify opportunities for improvement on
approach, execution, and results. We have three tiers of this
assessment available of varying depth and scope.
TOOLS OF THE ASSESSMENT

• Organizations can use a broad array of techniques to make selecting

the right assessment tool easier. The first order of business is to do a
thorough job analysis, followed by a review of the various types of
assessment methods available.
• Job Analysis The first step in selecting an assessment tool is to
understand what the target job or role requires the employee to do
by conducting a job analysis15 that focuses on identifying critical
work activities and/or competencies
Assessment Methods
Work Behavior Assessments
• Behavioral interviews.
• Work simulations.
• Physical ability tests
Acquired Knowledge, Skills and Experience Assessments
• Bio data/experience.
• Job knowledge.
• Writing skills.
• Situational judgment.
Cond…

Innate Ability and Attribute Assessments

• Cognitive ability.
• Personality.
• Integrity.
• Physical fitness.
Cond…
• Work behavior is the tip of the iceberg—the observable performance on the job.
Work behavior assessments require candidates to perform simulated aspects of the
job and provide an observable measure of performance that should forecast real
on-the-job performance. These assessments should correspond closely to the
specific work that candidates will perform and tend to be expensive, time
consuming and somewhat limited in their use.
• Acquired knowledge, skills and experience sit just below the surface. Although less
directly observable than work behaviors, assessments of job-relevant knowledge,
skills and experience are extremely effective predictors of job performance. Because
these assessments require measuring unique capabilities relevant to specific jobs,
they are not generally applicable across jobs.
• Innate ability and attributes, including personality and interests, lie deep below the
surface and also have been proven to be effective predictors of job performance.
Because assessments of innate characteristics do not focus on job-specific traits,
they are the most flexible and applicable for use across different jobs.
Talent development

• Talent development focuses on how to develop employee skills and

competencies.
• Organizations provide learning opportunities and tools for employees to
advance their overall careers.
• Talent development is a business strategy that companies implement to retain
their top talented employees.

What Makes Talent Development Special?

Developing talent is one of the best ways to assure an organization has the
leadership it will need for a successful future. Few organizations have a
sufficient supply of talent. Gaps exist in every company and talent is more and
more scarce, so it needs to be managed.
Talent Development Management

• Talent is developed in numerous ways other than just traditional

training and development. It can be obtained by coaching, job
shadowing, lectures, mentoring, rotations, books, articles, assessments,
and more.
In order for a process to be successful, it needs to start at the top with
senior executives. Leaders nurture talent development by:
• Being a role model and sharing what they know
• Reinforcing the belief that what employees do is important
• Emphasizing the value of learning
• Acting as coaches
• Using work problems as real-world training opportunities
Training and coaching
• Coaching and training are often used interchangeably, and that leads to confusion,
especially when words like “mentoring” and “counseling” are added to the
mix. It’s not so much that managers don’t know the differences between coaching
and training but that so many of their actions imply that they don’t.
• Training
• Training is used for things like new-hire orientation, changes in processes,
procedures, or technology, and new governmental regulations. It trains something
specific and can be a one-time event.
• Coaching
• Coaching sometimes has a bad reputation because it’s so often used to deliver
critical or constructive feedback. But it shouldn’t be. It should be an on-going
activity with each of your employees designed to keep everyone on track.
Key characteristics of training:

• Learning focused
• Provides new knowledge and skills
• Often takes place with groups
• Usually structured
• Used to get someone to do a specific task
Key characteristics of coaching:
• Development focused
• Facilitates critical thinking and decision-making
• Usually takes place one-on-one
• Informal or unstructured
• Used to improve performance and behavior