Advantages disadvantages of succession
The organization should do its best to have staff available to move up in the organization even when unexpected circumstances arise.
Other times, there simply may not be a suitable candidate within the organization. Sometimes a person may be developed for a role in the organization that may not exist in the future. Internal selection, as opposed to hiring employees from outside the organization, has a number of benefits and drawbacks.
Many employees are motivated by the opportunity for promotion and movement within a company, and succession planning can be highly valued by these employees.
Succession planning, which is identifying and preparing managers for future promotions within the organization is one element of successful human resource planning.
Value of succession planning
The first potential problem in succession planning is the crowned prince syndrome, which occurs when upper management only considers for advancement, those employees who have become visible to them. Succession planning is typically used in higher-level organizational positions, such as executive-level positions. Along with career paths, the organization should develop replacement charts, which indicate the availability of candidates and their readiness to step into the various management positions. For instance, if a company predicts that its Chief Executive Officer will retire in the near future, the organization may begin looking months or even years in advance to determine which current employee might be capable of taking over the position of the CEO. Such a strategy can help an organisation to meet its continuing need for people at all levels and in all occupational groups, demonstrate its commitment to developing its people, and systematically identify, assess and develop its talent to fill company vacancies. To determine the level of abilities of employees within the organization, many of the same selection tools that are used for assessing external candidates can be used, such as general mental ability tests, personality tests, and assessment centers. Some staffing needs can be anticipated, such as a known upcoming retirement or transfer. Once these qualifications are defined, employees must be evaluated on these qualifications to identify those with a high potential for promotion. These symptoms include: Managers complaining they have no-one ready when vacancies arise; Increasing expenses for external searches for new employees; Those regarded as 'unofficial' possible successors are leaving by surprise citing they see no advancement opportunities for them within the organisation; High potential employees are leaving in greater percentages; There is a lack of numbers of women, minorities, or other groupings of staff that reflect the demographics of the organisation and its customers; Staff complain that promotion decisions seem to be based on favouritism, nepotism, capriciousness, or expediency. This can lead to motivated individuals losing interest and not trying as hard in the work place. Despite the disadvantages cited above, the benefits to an organisation of succession planning are significant. In some situations, it is better to replace a manager with an external candidate to bring new skills to the team. A career path is the typical set of positions that an employee might hold in the course of his or her career.
When done well, this can deliver a seamless transition from one leader to the next. Despite the disadvantages cited above, the benefits to an organisation of succession planning are significant. This may result in turnover of high quality employees who have been overlooked for promotion.
To determine the level of abilities of employees within the organization, many of the same selection tools that are used for assessing external candidates can be used, such as general mental ability tests, personality tests, and assessment centers.
Attempting to maintain such records by hand may prove daunting.
Informal succession planning
The charts indicate who is currently ready for promotion and who needs further grooming to be prepared for an upper-level position. There are often employees throughout the organization who are capable of and interested in promotion who may be overlooked because of the more visible and obvious "crowned prince," who is likely to be promoted even if these other employees are available. Such qualifications should be based on information from a recent job analysis. Finally, internal selection is often motivating to others in the organization—opportunities for advancement may encourage employees to perform at a high level. In order to prepare these lower-level managers for higher positions, they need to engage in development activities to improve their skills. Effective succession planning programs require a well-communicated process that is clear to all employees, opportunities for participation based on interests and skills, and a clear understanding that even when succession programs are in place, there are no guarantees of succession into specific positions. If the parent favors one child over another and if this is not considered to be fair, it can have a catastrophic effect on the small company.
Not All Can Be Successors One of the weaknesses of succession planning is that, by definition, not all employees can be identified as successors--there are just not that many key positions to be filled. Some of these activities may include: Job rotation through key executive positions.
Failure of succession planning
When done well, this can deliver a seamless transition from one leader to the next. For instance, if a company predicts that its Chief Executive Officer will retire in the near future, the organization may begin looking months or even years in advance to determine which current employee might be capable of taking over the position of the CEO. Even on the computer, identifying and evaluating many years' worth of information about employees' performance and experiences may be difficult. Managers need to carry out succession planning carefully to avoid motivational issues. Formal courses may improve managers' abilities to understand the financial and operational aspects of business management. However, there are disadvantages to succession planning that leaders should note. However, not all organizations take a formal approach to it, and instead do so very informally, using the opinions of managers as the basis for promotion, with little consideration of the actual requirements of future positions. Not All Can Be Successors One of the weaknesses of succession planning is that, by definition, not all employees can be identified as successors--there are just not that many key positions to be filled. Attempting to maintain such records by hand may prove daunting. These charts are depicted as organizational charts in which possible candidates to replacement others are listed in rank order for each management position. Additionally, the performance of this manager at the executive level can be assessed before further promotions are awarded. In addition to this, training costs money. Because of access to annual performance appraisals and the opinions of the employee's current managers, the company can have a fairly accurate assessment of the employee's work capabilities.
based on 3 review