Download Chapter 9 Succession Management Learning Objectives

Chapter 9
Succession Management
Learning Objectives
After reading this chapter, you should be able to:
• Understand why succession management is important
• Trace the evolution of succession management from its roots in replacement planning, comparing the two models with respect to focus, time, and talent pools
• List the steps in the succession management process
© 2010 by Nelson Education Ltd.
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Learning Objectives
After reading this chapter, you should be able to:
• Compare and contrast the job‐based and competency‐based approaches to aligning future needs with strategic objectives
• Discuss the four approaches to the identification of managerial talent
• Describe several ways to identify high‐potential employees
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Learning Objectives After reading this chapter, you should be able to:
• Evaluate the advantages and disadvantages of the five management development methods
• Recognize the difficulties in measuring the success of a management succession plan
• Outline the employee’s role in the succession management process
• Describe the limitation of succession management, and propose some possible solutions to these limitations
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Importance of Succession Management
• Succession management ‐ the process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the organization
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Evolution of Succession Management
• Replacement planning ‐ the process of finding replacement employees for key
managerial positions
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Evolution of Succession Management
Replacement planning has evolved into succession management by:
• Broadening the focus
• Expanding the time horizon
• Creating a talent pool of replacements
• Improving the evaluation system
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Reasons for Succession Management
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Provide opportunities for high‐potential workers.
Identify replacement needs
Increase the talent pool of promotable employees
Contribute to implementing the organization’s strategic business plans
5. Help individuals realize their career plans
6. Tap the potential for intellectual capital
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Reasons for Succession Management
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Encourage the advancement of diverse groups
Improve employees’ ability to respond to changing environmental demands
Improve employee morale
Cope with the effects of voluntary separation programs
Decide which workers can be terminated
Cope with the effects of downsizing
Reduce headcount to essential workers only
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Succession Management Process
The process involves 5 steps:
1. Align Succession Management Plans with Strategy
2. Identify the Skills and Competencies Needed to Meet Strategic Objectives
3. Identify High‐Potential Employees
4. Provide Developmental Opportunities and Experiences
5. Monitor Succession Management
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Step 1: Align Succession Management Plans with Strategy
• Organizations must start with the business plan
• Using environmental scanning, managers try to predict where the organization will be in three to five to ten years
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Step 2: Identify the Skills and Competencies Needed
1. Job‐Based Approach
2. Competency‐Based Approach
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Job‐Based and Competency‐Based Approaches
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Job Based Approach – •
focus on duties, skills, job experience, and responsibilities required to perform the job
Not adequate since •
jobs change rapidly
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Competency‐Based Approach – focus on measurable attributes that differentiate successful employees from those who are not
Hard and soft skills
Produces more flexible individuals 13
Types of Competencies
1. Core competencies
2. Role or specific competencies
3. Unique or distinctive competencies
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Step 3: Identify High‐
Potential Employees
Organizations use several approaches to identify managerial talent, including the following:
• Temporary replacements
• Replacement charts
• Strategic replacement
• Talent management culture
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Step 4: Provide Developmental Opportunities and Experiences
• Peter Drucker states that: “Most managers are made, not born. There has to be systematic work on the supply, the development, and the skills of tomorrow’s management. It cannot be left to chance.”
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Management Development Methods
Promotions
Job Rotations
Special Assignments
Formal Training and Development
• Mentoring and Coaching
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Promotion
• Promotion – an employee’s upward advancement in the hierarchy of an organization
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Job Rotations
• Job rotations – a process whereby an employee’s upward advancement in the hierarchy of an organization is achieved by lateral as well as vertical moves
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Mentors
• Mentors – executives who coach, advise, and encourage junior employees
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Step 5: Monitor Succession Management
• Corporations with strong succession management programs are higher performers in revenue growth, profitability and market share
• HR metrics can be used to help monitor succession management
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HR Metrics for Succession Management
• Increased engagement scores
• Increase positive perceptions of development opportunities
• High potentials’ perceptions of the succession management process
• Higher participation in developmental activities
• Greater number involved in the mentoring process
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HR Metrics – Lag Measures
• Increased average number of candidates
• Reduced average number of positions having no identified successors
• Increased percentage of managers with replacement plans
• Increased percentage of key positions filled according to plans
• Increased ratio of internal to external hires
• Increased retention rates of key talent
• Increased percentage of positive job evaluations
• Increased number of bosses as talent developers
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Employee Role in Succession Management
Advantages
• Invites employee participation
• Gain employee commitment to and ownership of the plans
Limitations
• Elitism
• Risk of the spotlight
• Selection bias
• Unpredictable futures
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