Professional Documents
Culture Documents
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TERM PAPER
Of
Human Resource Management
TOPIC: -
Succession Planning in the Government Sector
I, Pramod Kumar Tiwari student of Lovely Professional University have completed the
Project on:
ACKNOWLEDGEMENT-
First of all I would like to thank the Lovely Professional University and take the opportunity
to do this project as a part of the MBA-IT.
Many people have influenced the shape and content of this project, and many supported me
through it. I express my sincere gratitude to Mr. Sunil Budhiraja for assigning me a project
on HRM, which is an interesting and exhaustive subject.
He has been an inspiration and role model for this topic. His guidance and active support has
made it possible to complete the assignment.
Last but not the least I would like to thank the Almighty for always helping me.
INTRODUCTION-
Succession planning is a process of determining critical roles within the company, identifying
and assessing possible successors, and providing them with the appropriate skills and
experience for present and future
opportunities.
• Determine what roles and skills are critical for the growth of the company.
• Analyze and address the gaps revealed by the planning process.
• Identify and understand the developmental needs of employees to fill those positions.
• Ensure that all key employees understand their career paths and the roles they are
being developed to fill.
• Train people for skills and positions that are not presently existing in the company
• Understand the time needed to backfill key roles.
• Enrich succession plans through regular executive discussion of people and posts.
• Identify top performers in all departments and make sure that they are engaged and
satisfied to stay with you for a long period.
• Continually review and check the process of succession and whether planned
individual development has taken place.
Are you ready to continue business without interruption after losing a strong and effective
leader in your organization? Leadership is and has always been a relatively scarce commodity
within companies. First, you need to analyze what has made the business successful. Does
that success rely on skills or knowledge of the leader that could leave? Next, you need to look
at the future of the company. Where are you going and what skills do you need to get there
and once you are there? Is that talent currently in your leadership team?
Other important questions to consider are - existing and future market competition, required
technology know-how, talent pool of existing employees, and management hierarchy and
reporting structure.
Answers to these questions can provide the basis for decisions on whether the business can
continue without the leader, how it would continue without the leader, who would lead and
how ready they are.
The recruitment of top talent is too expensive due to the rising executive search costs and
increased hiring contract requirements, not to mention the lack of knowledge about company
culture and inner workings. Recent research has shown that company find more effective
leaders by developing from their internal talent.
A careful and considered plan of succession ensures the least possible disruption to the
successor’s responsibilities and therefore the organization’s business and efficiency.
Succession planning plays a vital role and is necessary when a key executive or employee is:
A succession plan clearly sets out the factors to be taken into account and the process to be
followed in relation to retaining or replacing the person. Succession management systems
provide an enabling solution for the planning and process – going through all possible
scenarios and providing the best solutions and shortest paths to succession.
Having a decision making body and succession planning process is critical. However,
software can help make this process consistent, automated and fair. Succession planning
teams can play “what if” scenarios to ensure that they are thinking of all possibilities. They
can search for talent throughout the organization – in different organizations and countries.
They can also ensure a continual and full pipeline of talent.
Need………
Government sector is effected most by “baby-boomer” retirement wave than any other
organizations. For example , BHEL, government organization has faced a recent problem
when his chairman has resigned from the post but the organization has noone to feel the post .
organization was running for 3 months without chairman and they encurred loss of crores. So
this ensuring retirement wave and the goal of achieving greater organizational efficiency ,
makes succession planning a top priority for government organizations.
Many government organization does not know how to approach the succession planning
process. Most of the senior executive is influenced by the political leader and challenges in
implementing an effective successor selection process that abides by the merit system
principles. Government can learn from their peers in private sector can apply the same
technique in government agency.
EXECUTIVE SUMMARY:
This report discusses the bodies and structures responsible for succession planning at profiled
organizations and how these ensure leaders’ involvement in and support of succession
planning. Leadership talent identification and selection, leadership development programs,
and methods for measuring and improving succession planning process effectiveness are also
discussed, as summarized below.
There are three main models that companies use to implement succession planning:
Organizations should take a close look at their goals and levels of commitment before
choosing a model that best suits their needs.
This is the most common model of succession planning and serves as a crucial point for all
types of businesses. Short-term replacement planning is focused on an urgent need caused by
a sudden development within the organization –skilled employee leaving the company,
expansion or contraction of business. Sometimes, emergency replacement planning must
work to retain knowledge that is about to be lost. Emergency knowledge retention is an option
to consider if the organization is about to lose specialized knowledge and does not have a
successor to take the knowledge.
Emergency succession planning can come into play any time the organization expands in a
new direction or discovers the talent gaps to fill the required managerial position. Generally,
human resources will try to fill the role from within the organization, but often go outside, if
no one has been trained for the job in the organization.
Talent management focuses on the future needs of the organization. Working within the
strategic framework for the company’s future goals, senior management identifies the
positions necessary for growth and the best candidates to fill those roles. Some organizations
invite all employees to take part in an assessment process, while others have managers
identify leadership candidates.
If companies wish to grow leaders from within their existing talent pool and have the time and
resources to develop a useful program, effective talent management will become a key
component of its long-term human capital strategy.
This model allows senior management to plan for the long-term growth of both the
organization and employees within the organization and prepare for emergency replacements
to ensure that business is not affected by knowledge loss or lack of skilled employees.
HR professionals will find that the advantages of succession planning greatly outweigh the
disadvantages, which can be overcome by proper planning and communication within the
employees and senior management.
LITERATURE REVIEW:
1. John Beeson (2000), of Beeson Consulting, acknowledges that specific succession
practices and plans differ from one organization to another, yet he identifies two emerging
themes. The first is that priorities have been placed on retaining top talent, and second, is a
desire to allow for succession planning to become more “flexible” and “action-oriented”
(Beeson, 2000). Beeson identifies a correlation between succession planning and retention
of highly valued talent, and describes how this has caused these efforts to “be pushed down
to lower levels within the organization” (Beeson, 2000). To address the desire for
succession planning to become more flexible and action-oriented organizations are
emphasizing that these plans contain simplicity; focus; open communication; be driven by
line managers; require executive involvement; consist of leadership success profiles; utilize
rigorous assessment and talent pools; involve individual development planning; create
linkages to staffing, diversity, and reward systems; and finally, established measurement of
effectiveness of these efforts.
2. James Caudron ( 1999) These similarities are: forecast business and leadership needs;
create a list of necessary competencies; assess the internal talent and identify gaps; provide
developmental opportunities; hold employees accountable for their own development; and
make succession planning an integral part of business planning (Caudron, 1999). Caudron
(1999) offers these six similarities of succession planning efforts of successful
organizations; however, it is important to note from other works that measuring the
effectiveness of the plan should be included as a seventh step .
5. Sidney kess(2006),Two recent court decisions (Estate of True and Estate of Blount)
involving buy-sell agreements highlight the importance of informed succession planning.
This article focuses on recent developments and practical tips for family and non-family
business planning. For example, it is not a good idea for a client to have the buy-sell
agreement drawn up by his real estate lawyer. Asking a client for a copy of the buy-sell
agreement (assuming one exists) and all the insurance policies is a great way to start the
engagement. A buy-sell/insurance check-up often uncovers costly errors that can be
corrected.
7. Paul Byham (1999) , Use of talent pools or acceleration pools are common methods in
success planning. These are described as pools of employees that are highly talented and
possess the leadership competencies identified by the organization (Byham, 1999). Those
candidates can then be placed in ‘stretch’ positions for accelerated development. Stretch
positions are described as those offering the best learning and highest-visibility
opportunities (Byham, 2000). Colgate-Palmolive describe stretch assignments as those
“that build new skills and abilities by taking the individual out of his ‘comfort zone’”.
8. Joseph S.Bower(2007) ,In his analysis of 1,800 successions, Harvard Business School
professor Bower found that companies performed significantly better when they appointed
insiders to the job of CEO. Yet Bower finds far too many companies have no succession
plans; as a result, when the time comes to name a new chief executive, more firms turn to
outsiders. Both insider and outsider CEOs have strengths and weaknesses at the start.
What companies must do is find a way to nurture what Bower calls inside-outsiders -
internal candidates who have outside perspective. Often such executives have spent much
of their time away from the mainstream of the organization, and away from headquarters,
living with new opportunities and threats. Nascent inside-outsiders should enter the CEO-
training process by the time they are 30 and be given the opportunity to manage a whole
business, so that they become good insiders. But they also need to be mentored with an
eye toward preserving their outsider perspective, so they learn how to turn their new ideas
into great businesses and are protected from old-timers who might be inclined to teach
them a lesson.
10. Marshall Goldsmith(2009)There are many reasons, both personal and professional, to
invest in developing successors from internal candidates. Many executives say that
succession planning "feels like a waste of time" and yet they acknowledge a lack of bench
strength. As a result, the continuity and performance of the business are at risk. When the
author discussed these challenges with his friend Jim Moore, former CLO of three
companies, they came up with four ways for making leadership succession more effective.
These are: 1. Change the name of the process from Succession Planning to Succession
Development. 2. Measure outcomes, not process. 3. Keep it simple. 4. Stay realistic. These
four suggestions help shift your focus from planning to development -- and achieve bench
strength.
SUCCESSION PLANNING METHODOLOGY:
Succession planning starts when you can accurately measure the performance of the
employees assess skills and career growth information. Succession planning tools need to
have extensive integration and customization options to support all of your talent management
efforts.
To identify a correct succession planning and talent management system you need to have a
software that –
RESULT:
From the above discussion we can say that Effective succession planning plays an important
role in organization growth. Every organization should have succession planning programme
so that they can remove future contingency . It is good to have succession planning than
depending on the outside source. Because depending on the outside source can cost you much
more than succession planning cost. That is the same happened in case of BHEL a public
sector organization.
CONCLUSION:
From the above discussion we come to conclusion that the government sector needs an
effective succession planning. Otherwise they can suffer the problem same faced by BHEL
during last year 2009, mainly the NAVRATNA companies of INDIA needs to have
succession planning. Because most of the companies in NAVRATNA are the core sector of
INDIA which effects GDP of INDIA, and can effect the economy of INDIA. So effective
succession planning will be very helpful to INDIA SUCCESS.
REFERENCES:
Ray Blunt, "Organizations Growing Leaders," IBM Center for the Business of
Government (2001).
BIBLIOGRAPHY:
http://economictimes.indiatimes.com/news/international-business/JPMorgan-
Chases-CEO-mulls-succession-plan-
http://www.wapa.gov/newsroom/pdf/success.pdf
http://www.4cleanair.org/chicago/EffectiveSuccessionPlanningforPublic.pdf
http://www.pwc.com/us/en/public-sector/publications/federal-government-
succession-planning.jhtml