Through this process, the best individuals are recruited and constantly trained to develop their knowledge and skills so that they can assume more challenging roles as and when required.
This process basically helps in building the bench strength and ensures a seamless transfer of management in the event of loss of a key employee, creation of new jobs, expansion activities, promotions or redesign of the organization.
For example, Cyrus Mistry was chosen as the successor of the TATA Group Chairman Ratan Tata. Succession
Planning can be applied at every level of the management and all the leading corporates like Mahindra and Mahindra, Godrej, Murugapppa Group etc. have a succession Plan in place.