Published in Human Resources Terms by MBA Skool Team
What is Replacement Charts ?
A replacement chart lists the critical job roles in a company, the employees currently positioned in those roles, their competencies, the current vacancies and facilitates in future succession planning.
Against each vacant position, the competencies required for the position are mapped and then the employees in the organization with the requisite competencies are tagged and thus the potential replacements are found. The details of the potential candidates along with their age, skills, their experience and the competencies they need to satisfy the required position are listed. Then a comparative analysis of the experience and skillsets of the potential candidates with those required for the position is done. It is in this way that the company can organize its succession planning and can identify internal KSAs (Knowledge, Skills and Abilities).
Replacement charts classify employees into four groups
i) Employees ready for promotion
ii) Employees who would be ready for future promotions if given additional training
iii) Employees performing satisfactorily but needs motivation and further improvements
iv) Employees who are not fit to be on employment & need to be replaced.
The replacement charts answer the following questions
i) what is the organizational history of an employee and the competencies that the employee possesses?
ii) Who are the most eligible replacement options for a vacant position?
iii) What are the benefits of selecting a particular employee for the incumbent position relative to another employee? Changes must be made to replacement charts regularly, at least once annually, and with changes in market scenario and economic conditions.
A slightly different term is a position replacement chart which lists down all the employees that can replace an employee holding a job position. Personnel replacement charts are computerised for easy accessibility and modification as per requirement. Thus, it aids in determining the benefits of selecting an employee for a position quantitatively and prevents the organisation from losing revenues in case of any unforeseen exit from the organisation. A personnel replacement chart is shown above.
Hence, this concludes the definition of Replacement Charts along with its overview.
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.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.