What Is Succession Planning?
Large commercial organizations require a lot of expertise and an integrated network to be able to move ahead towards the future dynamically. In organizations, especially commercial ones, capital is the most important thing needed for its everyday working. Capital is of two types: namely monetary capital and intellectual capital. The work force is the one who form the intellectual capital of the organization. The ideas and the information they impart are churned out in organizations to produce innovative strategic policies for its improvement. The work force is a very important part of any organization. But there are rules and regulations according to which the people have to retire at some point of time. Hence, succession planning forms a pivotal part in business houses. Succession planning refers to the process of finding a replacement for the main work force that are retiring or leaving work for any reason. The process of succession planning is cumbersome as it involves finding the right candidate and then training him or her to fit into the needs of the company. Succession planning is done mainly for top positions like CEO's. Succession planning is done as a backup in case of any major crisis. The people at the top position review the newer lot to be able to access the true successor to the same seat. Succession planning hence keeps the company ready to meet any unforeseen situation as organizations know the successor to their top posts in case of unnatural situations. This process is carried out regularly and the newer work force performs their work properly knowing that they have chances of succeeding someone too. Hence leadership quality is inculcated in juniors who willingly take on new responsibilities. Succession planning ensures that in case of any problems, the working of the organization will not be disrupted. Hence the efficiency of the organization is maintained. There are many cases that emerge like the CEO might not feel like working anymore or getting a better proposal in other rival organizations which he might accept. The top position manager might even die suddenly or shift to a new city because of family issues. Here, succession planning plays a very important role as sudden changes would not affect the efficiency of the organization. The successor is acquainted with the job portfolio from before, and hence with little polishing and training, he can carry out his new responsibility efficiently. In some cases, he may require training and even mentoring to work according to the needs of his job portfolio. In other cases, the successor might not get settled into their new work profile which can complicate the issue further. Choosing the right person is also done through job rotation. A company is sometimes able to judge the true potential of the worker through job rotation. Succession planning is indespensible for the efficiency and smooth functioning of any large organization. |
