Whom Is Succession Planning For Commerce Essay


Succession planning is defined as the process of ensuring that qualified persons are available to assume key managerial positions once the position is vacant. Since there are many reasons leading to a vacancy such as death, resignation, termination or the orderly retirement of company officials, management must always be ready with a succession plan.

In your opinion, succession planning should focus only to the top level of management or should it be expanded to the middle level of management as well?

1.0 Succession planning definition

Succession planning is a systematic process that identify and developed staff to fill in the roles of the key personnel in an organization once they is a vacancy of that position.

2.0 Whom is Succession Planning for?

Succession planning is essential are for the top management or selecting proper potential skilled personnel and develop them to grow and expand. It rises the accessibility of experienced and skilled employees that are set to accept these roles once available.

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It is done by asking this critical questions

Does this position need to have a unique or specialized skills to deliver a product/service ?

Does this position have critical influence over operations or strategy ?

3.0 Importance of Succession planning

Succession planning is done importantly to the achievement of the organization because the personnel will be then be responsible in handling future challenges. Furthermore, by giving them training and continuous development will enhance their skills and competencies needed once the gap needed to be filled in.

These selected personnel will be visible to a broad range of learning opportunities as they will becoming the leaders of the company. Besides that, these individuals should also be exposed to as much of the working environment as possible so that they gain a good understanding of what the company requires to remain successful.

By having succession planning in place , organizations will position themselves a step ahead of their competitors. The effort required to establish a development program for future leaders is worthwhile because it creates better and motivated group of employees that are equipped to change onward in the organization when the need arises.

4.0 Current Issues on Succession Planning- Articles Reviews

4.1 Article 1: Maintaining Organization Culture Through Leadership Succession Planning

Leadership succession may impose a problem for organizations desiring continuity of the existing organizational culture. According to Trice and Beyer (1993) studies showed that leadership fails to representing or mixing organizational culture .This research article was to extinguish relationship between a planned leader succession and the continuity of organizational culture.It is to note that , a leader should into account and show the following traits to obtain successful succession planning and these are:

"Articulate ideology"

"Represent existing values that were successful in the past"

"Effective role model"


"Refurbish and strengthen existing culture"

"Affirm and celebrate existing cultural ideologies and values"

"Continue existing traditions"

4.2 Article 2 : Keeping it in the family: How to improve succession planning

This article emphasis on how different cultures react on implementing succession planning especially in family oriented business. In Western countries, succession planning is done by properly selecting and identifying the potential candidate, mostly done when they are still in their teenagers so that ample experience will be obtain .In contrast , Eastern countries do it by heredity or those that are close kin or blood connected.

An approach done to a company in China mainly creating a fund to groom potential successors , developing them along the way but unfortunately was not successful. This is due to the fact that , most of the current modern entrepreneurs do not spent enough time with their children or future stakeholders . This will result in a lack of competitive and do not have the opportunity to do more hard work and determination, and this is a negative impact to business to prosper.

This article also highlight when doing staff succession plan and measures to be take in such as candidate selection, appraisal and evaluation. Combining the right framework with relevant educational background and business experience for successors are regarded as some of the vital ingredients of effective succession planning.

4.3 Article 3: Succession planning - or smart talent management?

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This article shows and examines advantages and disadvantages in building talent to ensure the right people doing the right job in an organization. This author points out five key strategies on how a succession planning works which are :

"Aligning succession planning with business strategy"-

"Assessing leadership potential using the 3cs- competence, connection and culture"

"Involve the talent in the planning" - by having the right people will give maximum contribution to the organization

"Mixing development: experience/coaching/training,"

"Casting a wider net for succession"- by looking for the right people is a smart talent management strategy that can initiate holding of talent throughout the organization

4.4 Article 4: Diverse Succession Planning: Lessons From The Industry Leaders

As stated by (Pfeffer, 1998) some large corporation, such as Hewlett-Packard, Lincoln Electric, and Southwest Airlines, do place heavy importance on promotion from within and treat succession planning as a part of a critical process. Even so, sometime practices in most organizations using succession planning did not include developing women and minorities for key positions.

Even so, McCuiston,Wooldridge, & Pierce, (2004) indicated that the future of many organizations will likely on their control of diverse succession planning given that building bench strength among women and minorities will be critical in the competitive war for talent. Hubbard (2004) stated if an organizations lack of diversity management programs will often experience excessive turnover and great additional costs, loss of investments in training, brand image problems, poor employer image, and litigation .

4.5 Article 5: "Succession planning without job titles",

This article recommends on getting the job competencies and not job titles as part of succession planning . Flexibility is required because careers are endlessly changing as business strategies progress to deal with quickly changing market settings. As highlighted by the author, set of competencies should not been focus on specific job but rather should be on skills and strategies required by the organization. As the potential candidate for the position was chosen, then possible generic competencies should be identified rather than focusing on the job title. Using a competency model will focuses on the skills and behaviours needed to achieve the business result and broaden the talent pool.

5.0 How to effectively conduct succession planning

Since Succession planning a part of an integrated HR process that includes training, development and performance appraisal, is essential to identify what skills the organization will need in another few years time. All main and critical positions must be also be identified and included in the Company's succession planning program. Next is to identify and analyse who are eligible for retirement including key performers that are ready to be in these critical positions. Managers need to identify the responsibilities, skills and competencies that will be needed by their replacements .

The training and development requirements of these potential successors needs to be established and developed through work experiences, job rotation and other challenging assignments. This succession planning must include medium of communicating and providing feedback and encouragement between potential successors and the organization.

6.0 Conclusion

The succession planning process needs to be considered as part of the company's strategic planning process because it gives projecting future changes by expecting management vacancies and then determining how to meet these challenges. It is not something an established company can ignore because the consequences of not being prepared to replace key personnel will have a major impact on an organization's ability to achieve its goals and strategic targets.

Question 2 -Compensation

In shaping the future direction of a company, one of the main responsibilities of the company lay in the development of its human capital. With the fluctuating demands and competitive supply, human resources, innovative and creativity are the salient tools for the companies to retain their competitive advantages in the market. Therefore the companies require their employees to be versatile, independent and highly skilled to be able to influence and build knowledge to produce quality choices .In order to recognise their talent in the company, there are many companies adopting the competency based remuneration policy. Assuming that you are the HR manager for a multinational company, how do you decide on the core competencies in order to design a competency based remuneration for middle managers in the marketing department? How do you intend to evaluate your employees using competency based remuneration ? Justify your answers

1.0 What is a competency-based pay?

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Performance based pay is used to compensate how competence or productivity a worker is. If a worker managed to outcome the required output standard , he or she will not get just the basic salary but other incentive payment as well. An example of this incentive payment is using commission as an attractive remuneration specifically dealing in sales or marketing to exceed the required quotas.

2.0 Why use competency based remuneration ?

Managers and executives play an important role in making impact to the organization.Thus by having a competency based remuneration could determine on how a marketing personnel can be achieved either by an individual or team level. By setting career goals, it would increase the employee motivation while reducing turnover and recruitment cost. By producing more relevant and unbiased performance appraisal plans will also linked to delivery of the company's objectives.

3.0 Advantages of using Competency Based Remuneration

3.1 Better Achievement

Worker using this competency based plan will result in more increased productivity as they intend to achieve higher. He or she will be rewarded accordingly if perform well as part of their incentives and overall will improve the organisation's productivity.

3.2 No Senority Factor

As this put more effort in how the employee performs involving competencies such as leadership skills and attention to detail , no seniority level has an impact and this is a benefit for the less experienced employee. This can motivate fresh or new employee without feeling predisposition as to receive higher compensation.

Culture of Improvement

Since compensation is based on showing improvement in the selected competencies, a large emphasis is placed on self-development. This can result in a persistent cultural attitude that the better you perform, the bigger the reward.

4.0 Disadvantage of using Competency Based Remuneration

4.1 Bias

Bias does occur during the evaluation process for competency based remuneration . Concepts such as leadership and the multitasking are open misinterpret, and this will result in higher possibility of inaccurate rating.

4.2 Relationship of Competencies to Performance

It can be difficult to establish which competencies actually result in improved job performance or productivity. For example, if your customer service representative increases the number of inquiries he handles in a day, is it because of an improved ability to multitask or increased attention to detail that helps him resolve issues more quickly?

4.3 Element of Favoritism

Another possible downside to competency-based pay plans is that they can result in the perception of favoritism,. If one worker perceives herself as more valuable than another but discovers that the other employee received a larger pay increase, he/she may assume that being treated unfairly. Finally this will create disagreement and dispute among the employees.

5.0 How to conduct an effective Competency Based Performance for Middle Manager in the Marketing department?

As many companies are trying to achieve on growth , many are being stopped from being forward ,which are their sales or marketing force as caused by ineffective sales personnel and many turnover.

It is essential to use the below model for competency selection and definition with the aim for business strategy . Defining what the enterprise needs to do to succeed is essential. This definition subsequently is understood in terms of desired behaviors, results and outcomes people need to provide to help the strategy succeed.

Model of Competency Based Perfomance

(taken from " Competencies and competency models: does one size fit all", ACA Journal, Spring 1996, Volume 5 No. 1)

The role compensation plays is defined in the compensation strategy. Where competencies are part of the compensation strategy, organizations should explore the possible competency sources drawn here and select those competencies that fit their communication needs. Strategic advantage comes from defining and executing competencies to provide advantage. The model provides strategic alignment for competencies.

One way to solve this is the appropriate competency compensation model together with a performance evaluation as a part of it. This model is a standard mark to acknowledge some people better at doing sales or marketing than others and at the same time will be used throughout the entire department . This model has been created over the years but most will focus on key areas such as skills , knowledge and personality or behaviors .

6.0 How do you decide the core competencies of the Marketing Manager?

As a leader key areas for the marketing manager has to be the ability to communicate orally and in writing, interpersonal & persuasion competencies and strategic marketing planning and implementation competencies seem to be essential for for marketing managers irrespective of the industry.

7.0 How to evaluate employees using the Competency Based Performance ?

Evaluation should takes place in both core competencies and job competencies to assess a productive worker.

Competency-based performance review focuses on three areas which are: core competencies, job competencies and the use of both to perform job assignments and duties. For example, a skilled marketer who is proficient in doing his work but has poor communication skills is incapable of giving quality correspondence since so much of the market depends on how well providers communicate with their clients.

Evaluation should also be part of building training curriculum and coaching programs that report the most significant effectiveness gaps between high performers and the rest of the sales force.

8.0 Conclusion

Competencies can be used to assist in creating more meaningful development discussions between marketing manager and team member by becoming the vehicle to review behaviours and performance during past situations in conjunction with future performance needs for the business and the individual.