Published by MBA Skool Team, Last Updated: January 03, 2021
What is Succession Planning?
Succession planning is an activity done by companies to groom employees for senior roles in the future. Under succession planning, companies identify critical organization positions for which existing employees need to be prepared for. This is a critical process in HRM keep in mind the long term requirements of a company of having leaders in key positions.
Importance of Succession Planning
In every company, there are certain critical positions which always need to be held by key persons having high business acumen, strong leadership skills & must be able to motivate their respective teams & functions. To make sure that companies keep on functioning efficiently, there is a process to groom, train, skill & retain employees who care take-up such critical roles. This process is known as succession planning. This is an important activity which ensures that under any unfortunate circumstances, the company roles must be filled by highest efficient & motivated employees.
Succession Planning Process
The systematic approach & process which are used for training & grooming employees for the future are:
1. Identify key positions.
2. Assess skills & abilities needed.
3. Identify employees who can be groomed.
4. Develop & train employees for skills, leadership & position needs.
5. Continue evaluating process for the future.
This process needs to be elaborately defined to prepare successors for key company roles in the future.
Reasons for Succession Planning
There are many reasons why companies keep successors ready for important roles. Some of the main reasons are:
1. Retirement of senior employees.
2. Resignation of key leaders.
3. Untimely death of high-level employees.
4. Creating new senior position.
5. Redeployment of key employees in different roles.
All these are some of the key reasons why succession planning is started early for planning better for the future.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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