SUCCESSION PLANNING AND ITS PRACTICAL APPLICATION.

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What is Succession Planning?

Succession Planning is known as a process that companies take to recognize the talent and leaders in the company for the future. 

Reasons to consider Succession Planning.

• To accommodate demographic shifts and scarcity in talent.

Companies that change demographically will most likely face a lack of talent. The labor pool in the market will lack the experience and major skills needed for the main roles of the company (Farooque  2015). Not having many skilled candidates is one of the major concerns of HR leaders. Therefore, it is important to plan for the succession of different roles.

• To retrieve and retain the company knowledge.

When the labor turnover of a company is high, the employees that are newly hired to fill the positions will not have the organizational knowledge and the employees that left the company will be using the gained knowledge for another company (Tim, 2021). This is a loss to the company. 

• To increase retention rates and morale of the employees

If the company provides development and training programs to the employees and shows that they are grooming the staff for better positions, the retention rate will increase, and the employees will want to work harder. Herzberg's theory of motivation shows that providing proper recognition and improving personal growth will increase the motivation of the employees (Michael, Mullany, Felix, Tan, & Gallupe, 2008).

Figure 1 - Herzberg's theory of motivation

Source : https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory/

Cons and pros of Succession Planning? 

One of the main benefits is that this will guarantee a seamless transition in talent within the company. Especially for positions like product development in an apparel manufacturing industry as the employees need to know the Fashion product development which is complex and needs experience (Suh & Roh, 2015). The training will increase employee motivation thereby increasing retention (Bratcher, 2018). As a result, the company could decrease its expenses as well. However, companies need to be careful in using correct strategies and employees as the employees might be tempted to shift to other companies to use their new skills which is a huge risk (Boyd et al , 2021). 

In Conclusion, succession planning has its pros and cons. However, when it is done properly, it can greatly boost the company's success and stability in the long run. Especially major industries like apparel manufacturing should consider this method to retain employees and to increase stability. Most Sri Lankan apparel companies have foreign clients (Amarathunga et al,. 2021). When the clients notice that the company has a stable plan for the next ten years, they will be encouraged to retain in the company and to trust the company.

References

Amarathunga, B., & Wijethunga, S. (2021). The Relationship between Effective Communication and Employee Retention of Operational Level Employees in the Apparel industry in Sri Lanka. Wayamba Journal of Management, 09, 30-38. doi:10.4038/wjm.v9i2.7496

Boyd, S., & Linda, R. (2021). Closed Loop: the art of succession planning. Emerald Emerging Markets Case Studies, 11, 01-25. doi:10.1108/EEMCS-05-2021-0142

Bratcher, P. (2018). Succession Planning. Journal of New Librarianship, 03, 97-100. doi:10.21173/newlibs/4/19

Michael, D., Mullany, J., Felix, P., Tan, B., & Gallupe, P. (2008). The S-Statistic: A measure of user satisfaction based on Herzberg's theory of motivation. 

Suh, S.-E., & Roh, J.-S. (2015). A study on smart fashion product development trends. The Research Journal of the Costume Culture, 23, 1097-1115. doi:10.7741/rjcc.2015.23.6.1097

Terdpaopong, K., & Farooque, O. (2015, January 01). Exploring Succession Planning in Thai Family-Owned SMEs. doi:0.14456/jba.2015.14

Tim, D. (2021). Succession planning for executives. doi:10.4324/9781003201182-16

Varey, R. (1995). Herzberg's Theory on Motivation at Work. The Business Studies Magazine, 35-37.


Comments

  1. Sachini MahaulpathaDecember 18, 2021 at 8:57 PM

    Identification of talents for future leadership is a wonderful way of employee recognition. This helps retain the company knowledge and also to achieve the company objectives with highly skilled and talented staff. A very insightful article. Thank you for sharing this.

    ReplyDelete
  2. Manoj JudeDecember 19, 2021 at 11:07 AM

    A well established company always plan for future and make decisions on future leadership and begin searching for suitable new bloods rather than going for favourism. It is very much important to groom some talented, skillful young personnel as future leaders as they serve better when treated fairly and justfully

    ReplyDelete
  3. Dilrukshi indurugollaDecember 19, 2021 at 12:06 PM

    The practice of identifying essential jobs within your organization and generating action plans for persons to assume those positions is known as succession planning. This form of planning guarantees that you have the right people in the right professions today and in the future by taking a holistic view of current and future goals.

    ReplyDelete
  4. Manoj ThudawahewaDecember 19, 2021 at 12:10 PM

    Succession planning is a process and strategy for replacement planning or passing on leadership roles. It is used to identify and develop new, potential leaders who can move into leadership roles when they become vacant. This will be a one of effective way of identifying skillful experience employees. Very interesting article.

    ReplyDelete
  5. pradheep mbaDecember 19, 2021 at 5:18 PM

    Good and simple explanation of successful planning. In each organisation its victory is in planning correctly. Planning comes within the hr department and its their responsibility carrying the company towards victory

    ReplyDelete
  6. Damitha WeerasingheDecember 19, 2021 at 11:34 PM

    Succession planning is the process of planning towards the transition of leadership positions. This includes recruiting new talent or training internal candidates to successfully move into your position once you leave.

    ReplyDelete

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