This study is anchored primarily onthe theory espoused by William Rothwell in his Succession Planning Model, accordingto this theory in carrying out effective succession plan the following steps mustbe done: 1) Top Managers should appoint someone to spearhead and coordinate thesuccession planning program; 2) Work to clarify the purpose, policy, andprocedures to guide succession planning in the organization; 3) Work inconsultation with others to draft a proposed succession planning policy, proceduresand forms to be used; 4) Review procedures regularly to keep the pace withorganizational and environment change; 5) Leadership or Management Director ofthe Agency should check to make sure progress is being made on individualdevelopment plans; and 6) Establish a means to measure the programeffectiveness.
This is a proactive attempt to ensurecontinuity of leadership by cultivating talent from within the organizationthrough planned development activities. Further, Rothwell strongly emphasizedthat great succession planning focuses on developing strong talent pools in allkey areas – not just for executive positions. To be successful, succession planmust balance identifying high-potentials with developing existing leaders. Further, another theory that will be usedin this study is Caudron’s Six Steps to Succession Planning, according to thistheory successful Succession Plan must 1) Forecast business and leadershipneeds; 2) Generate list of competencies; 3) Assess internal talent and identifygaps; 4) Provide developmental opportunities; 5) Hold people accountable fortheir own development, 6) Make succession planning an integral part of businessplanning; and 6) Retention of talent developed.
SuccessionPlanningSuccession plan is acomponent of good Human Resource planning and management. Succession planningacknowledges that staff will not be with an organization indefinitely and itprovides a plan and process for addressing the changes that will occur whenthey leave. Most succession planning focuses on the most senior manager – theexecutive director, however, all key positions should be included in the plan.Key positions can be defined as those positions that are crucial for theoperations of your organization and, because of skill, seniority and/orexperience, will be hard to replace. (hrcouncil.ca, 2013)Richards (2009) posits that the academic institutions mustformulate strategies for attracting, developing and retaining a leadership poolthat will ensure the institution’s long-term health. Colleges and universities incur avariety of costs by not being intentional about succession planning.
(Keifier, 2008),found out that highpotential employees vying for higher leadership position may easily be piratedby other high profit organizations because the institution is incapable ofmaking any type of forward commitment or even giving someone a reasonableassessment of their chances.In their study, Evans,Pucik, and Bjorkman (2011) reported that most succession plans havehistorically focused only on high-level position, but in recent years, moreattention has been given to selecting successors for positions throughout theorganization. Knowing who are the key players, are at any level – and whatpositions are vital that must be filled in as need arises.
Hence, organizationsmust 1) Train high-potential employees and provide them with coaching; 2)Reward managers for developing their employees; 3) Provide more than one way tosucceed in your organization; 4) Allow employees to move laterally – not justup in the organization – to gain valuable experiences.Succession planning process according to (Healthfield, 2016) mean recruitment of superioremployees,development of knowledge, skills, and abilities, and preparing employees foradvancement or promotion into ever morechallenging roles in the organization. Activelypursuing succession planning ensures that employees are constantly developed tofill each needed role in the organization.On a more strategic level, successionplanning according to (Services, 2012) will help organization remainsuccessful even after the loss of a key worker.
Some of the other benefitsinclude: 1) having right people in the right place at the right time,developing a qualified pool of candidates who are ready to fill key positions,2) helping employees realize their career plans and aspirations, improvingemployee’s ability to respond to changes in the workplace, and creating moreopportunities for the timely transfer of knowledge at the corporate level.Whenever size andresources permit, a succession plan should involve nurturing and developingemployees from within anorganization. Employees who are perceived to have the skills, knowledge,qualities, experience and the desire can be groomed to move up to fillspecific, key positions. Organizations should: 1) Assess their current andfuture needs based on either their strategic plan, goals and objectives, orpriority programs and projects 2) Match these to the capabilities of theexisting workforce, 3) Develop a plan to manage the gaps that will arise whenindividuals in key positionsleave or are promoted. Rothwell and Kanasas (1999) states that topmanagers should appoint someone to spearhead and coordinate the successionplanning program: Leadership and Management Director, or HR director are goodchoices. These persons must be “tactful and discrete”, so the program will notlose credibility. Ascited by (Staff, 2013),astudy some years ago from consulting firm Booz Allen Hamilton concluded that”over their entire tenures, CEOs appointed from the inside tend to outperformoutsiders” when it comes to returns to shareholders. Yet many organizationsstruggle to take their succession planning programs beyond a static list ofnames slotted for a few top spots.
Jarbou (2013)mentioned that succession planning is not just about recognizing the talentgaps that exist in an organization today but identifying future talent needsand creating solutions to address those needs (Leonard, 2010, p. 4). The chiefobjectives of succession process are to align today’s talents with theleadership positions that will be required in the future and to overcomestrategic and operational challenges with the “right” people atdifferent points in time.
Guaranteeing that the culture and memory of theorganization will be maintained is another priority (Comini and Fischer, 2009,p. 9). It is therefore certain to say thatsuccession planning is a very important scheme to achieve continuity, increasecompetitiveness and ensure attainment of strategic goals of all sorts oforganization including academic institutions.Literature reviews confirmthat succession planning and development is rarely practiced not only amongHEIs in the Philippines but also among our neighboring countries in Asia. InMalaysia for example, (Abdulla, 2009) cited that Clunies believes that highereducation institutions has historically been slow to adopt many corporatemanagement processes such as succession planning. He further discussed areasonable doubt for the readiness of the institution to employ successionplanning or any executive development program because of dramatic culturaldifferences between the boardroom and the campus.
As cited by (Abdulla, 2009),Rosse& Levine(2003) support this argument by stating the complex and bureaucratic proceduresfor hiring among HEIs compared with many profit organizations or businesscorporations.This findings is supported by another studyof (Heuer J. , 2010) stating that successionplanning in higher education conducted in the University of Pennsylvania in2003, found that among the elite, so-called “Ivy-plus” institutions, none hadimplemented a formal succession plan. However, most of these institutions hadprograms that could be integrated into a succession plan (e.g.
, assessment andtraining protocols).Succession planning amongHEIs may not be common due to the belief that it is applicable only amongprofit organizations which have managerial positions. However, the idea thatsuccession planning is applicable only among managerial positions is refuted by(Rothwell, 2005), he stressed theimportance of succession planning as an effort for individual development thatshould include any job category, he seems to believe that in any case of staffshortage, it would bring to a disaster or chaos to the performance of theorganization for that particular time.As cited by (Malhotra, 2010), board members should be closelyinvolved in evaluating highest ranking managers, a pool of candidates should bedeveloped for a key leadership position and promote insiders with an outsideperspective. By doing this people from within the organization offers theadvantage of more hope to insiders.Hall (2006) supports this idea as he recommendsenhancing personal learning for executives andfor better integrating this learning with the strategic succession planning ofthe organization. (Hall, 2006) This sort of strategic approach to executivesuccession is seen as the “acid test” in a firm’s strategic planning process.
Further, employees according to (Farashah, Nasehifa, & Karahrudi, 2011) are also in support of practice of SuccessionPlanning. In a survey conducted by Bernthal and Wellins (2001), it was foundthat two–third of employees prefer to grow insidetheir present organization than leave. The study also revealed that the ultimate reason that madeemployees leave an organization is that they are not being developed and/or they do not have meaningful work.
(Kim, 2003)supports this study stating that employeesare key factors in determining training, self-improvement and careerdevelopment needs as they affect succession planning. Thus, a primary functionof a personnel office should be to provide employee assessments that also serveas sources of data for future workforce projections. Therefore, this is evident thateffective succession planning improves theorganization’s chances of retaining key personnel. As cited by (Mehrabani & Mohamad, 2011), Conger and Fulmer (2003) supports thecontention of this study. They argued that the effectiveness of a successionmanagement system is strongly dependent on its respond to the needs of users.In addition, it depends on the easiness of its tools and processes for usingand providing the reliable and up-to-date information.
Hence, assessment ofHuman Resource Information System must be conducted inorder to properlyevaluate the current succession plan of the University. Further, (Hirsh, 2000) stressed thatorganizations like the Civil Service and ICI ran computer stimulations of howchains of jobs could be filled when a senior person left. This depicts the needfor Human Resource Information System in establishing an effective successionplanning. Many oftoday’s leading international high profit companies have also long beenpracticing succession planning, General Electric (GE) for example movesindividuals identified as future leaders through different positions andgeographic locations to prepare them for eventual leadership. Xerox managers, are not eligible forpromotion unless they have recruited, trained, and developed their ownreplacements.
(Caldwell, 2007). Nestle has a history of promoting internally,it had continuously built a strong and deep management bench to ensure that acapable new CEO is ready whenever necessary, thus many stakeholders believedthat such practice will continue as it has contributed to the sustainabilityand competitiveness of Nestle as it reached 150 years of existence. (Koltrowitz, 2016)Berlin (2011) cited that Apple Inc.had probably employed a very extensive and comprehensive succession plans,prior to CEO Steve Jobs untimely death, it has been a public knowledge that Apple has been grooming Tim Cook for several years. The latter has already experienced the CEO role, has worked directly withJobs on the company’s supply chain – and hence, has a deep understanding of theinternal operations of the company.
Butunknown tomany, the company founded Apple University in 2008, the university’smission – “toteach Apple employees how to think like Steve Jobs and makedecisions he would make.” In many ways it was built to solve theproblem of “running Apple after Steve Jobs” – and setting in placethe tools and information which helps Apple learn from his collective 30 yearsof wisdom. This is a tangible example that companies spent money and time forsuccession planning and development.Indeed, investingin a reliable forecast about the future makes it possible to understand theskills and capabilities a company may need to be sustainable and competitive. Businessorganizations therefore, must ensure that qualified employees are alwaysavailable and in place to carry out its plethora of job functions to ensurethat discontinuity of job due to lack of knowledge and skills of employees incase of retirement or resignation of a key personnel will always be avoided, -this is the heart of succession planning.
(Succession Planning and Management Guide, 2008)