How Succession Planning Has Changed in the 21st Century - Coursework Example

Succession planning is widely used today in organisations. The importance of this has increased with intensifying competition. Succession Planning is “a process to identify the sequence so that organisations identify the talented employees and provide them training so that they can position of responsibility in the future”. (Dumas, 2010) The importance has increased as organisations require the correct talent. Organisations use succession planning to “build bench strength” (Dumas, 2010) for the organisation where they have a pool to choose from. It will ensure that the business units have the required talent in house. This has gone a change with organisations looking forward “to succession planning for all positions in the organisation instead of the top positions which was there previously”. (Dumas, 2010) A study conducted in this field shows that “organisations give importance to succession planning and by using this as a tool ensure future leadership for the organisation”. (Derr, 2002) This has made business units to consider it as very important. Organisations prefer to fill the vacancies from within as “the people working in the organisation understand the culture better and are able to articulate it clearly”. (Derr, 2002) Another study shows that “succession planning has changed compared to the last 10 years as the business has evolved and finding the correct talent has become difficult”. (Messick, 2010) This is due to the fact that the “age of work force is increasing and with changes taking place in the business front finding the correct talent is difficult”. (Messick, 2010) This has transformed the way business performs. Another study shows that “business units have undergone a change in the manner of succession planning so that the costs are reduced and revenues soar”. (Messick, 2010) This helps to meet the growth. The firm is able to save on cost. This ensures that the changes succession planning has undergone will be taken care off. Succession Planning has undergone change. Previously “succession planning involved looking for CEO’s but now a change is sweeping especially for Newspaper Company”. (Columbia & Levine, 2004) Today organisations look at succession planning for all levels. This has become a priority option. “Newspaper companies are looking to hire the correct talent irrespective of sex, provide them training and ensure retention” (Columbia & Levine, 2004) so that the vacancies when they appear get filled. Succession Planning has undergone change due to “change in the workforce”. (Beitler, 2005) This is putting more pressure on business units. Finding the correct talent is difficult. This is tougher due to the fact “companies downsized their workforce during the 90’s and with the workforce ageing finding the correct person has become difficult”. (Beitler, 2005) The policy to get in-house talent has become tougher. This is making companies look for new ways. This is making succession revolve and undergo change. Companies are specifically relying on it. For example, “Apple computers also have a succession planning for Steve Jobs though they are not revealing it”. (Ante & McGregor, 2009) The company has not disclosed in the public. Still, they have a plan in place. This will help them to fill the vacancy. Thus, succession planning is seen as important by all. Another example is seen in succession planning for farm land. It has evolved as “the inheritance of land ownership to the next generation has impacted both the culture and tradition of farmers”. (Cressman, 2000) This has impacted the large farms. The younger generation are into something else. So, passing of farm land has affected the agricultural yield and given different results. The change is succession planning is followed by business units as it gives them an advantage. It helps the business units to follow a trajectory for growth. Business units by “undertaking the change in succession planning has ensured that disaster doesn’t follow”. (Kelly, 2008) It has ensured that even due to circumstances beyond control business units don’t falter. It has ensured that the vacancies can be filled easily. The change seen by succession planning has ensured that “business units give their colleagues a voice to speak”. (Kelly, 2008) For example, family owned business has the opportunity that the next generation present their view and as a result get heard. This change has made “it easy and better to fill the vacancies that arise and will ensure the future growth of the organisation”. (Kelly, 2008) Succession planning has also helped business units to “reduce their expenses at the same time sustain income”. (Kelly, 2008) With, more importance given to talent within business units firms saves the cost of hiring. They look with a vision while hiring and see that cost are under control. The way succession planning has changed is impeccable. Today “succession planning considers the culture and strategy the business unit uses”. (Succession Planning, 2010) Organisations see that while planning their strategy these factors are present. This will help the business unit to get favour from the people. This will ensure steady flow of customers. This will also ensure that all this factors are properly accounted for. This will thus help to see that growth doesn’t falter. Organisations previously believed succession planning as an event. They used to do it when the need arises. But things have evolved. Today, “succession planning is considered as a continuous process where organisations start preparing the time they hire a new employee”. (Succession Planning, 2010) They start to look for places where they can fit those. This is a continuous process and has changed. Succession planning has also changed as “managers along with performing their duties have to ensure that they build their subordinates for future positions”. (Succession Planning, 2010) This was lacking previously. Managers used to concentrate on their jobs. This has changed and their area of horizon has broadened. Succession Planning also “looks at planning for future vacancies as everybody’s job which previously was the job of the top management”. (Succession Planning, 2010) This is a major change that is evolving. This has made people more responsible. It has entrusted additional pressure and to cope up with it employees need to perform better. The manner in which organisations find suitable talent has changed. Organisations have “developed different rating manner to examine the talent and qualities of the employees so that the vacant position finds the correct place”. (Succession Planning, 2010) Previously, this was done at the whims of an individual. This has changed tremendously and people are evaluated to fit in. Succession planning has ensured to “see that employees are trust worthy and this is found by the continuous performance and track record of the employee”. (Dumas, 2010) This has ensured that succession planning continues. It has also ensured more responsibility on the evaluator and the person being evaluated. It is also seen that business units fail due to improper planning. This has laid additional importance on succession planning. A survey shows that “1/3 of the business units suffer due to improper hiring which affects their succession planning”. (Dumas, 2010) Organisations need to be sure that it is done effectively. The change being witnessed by succession planning is making organisation change their strategy. It has forced business units to look at new ways to fill the vacancies. This has put extra pressure and business units are looking for ways to counter it. Succession planning has also changed the concept of hiring. “Business units instead of hiring the person look for acquisition of talent” (Dumas, 2010) as it gives them a pool to choose from. This is a common phenomenon in software industry. These industries hire more than the required talent and keep it on their bench. This ensures that they don’t have to search when the need arises. Also identifying the talent helps to plan for future. Succession planning has made many organisation follow talent acquisition as a strategy. This gives them the time and resource to use it in the other direction. It also ensures that the hiring spree is proper and time is not wasted. For example, when the CEO of Bank of America resigned the bank faced problem as they didn’t plan accordingly. They didn’t have a successor. This caused major problem. Even banks realize the importance of having one. The change succession planning has gone due to the way business units are performing is making it compulsory for business units to have one. This will ensure smooth flow from one to other. This will also help business units to keep ahead. This will fuel in growth and help to plan accordingly. With competition intensifying and change witnessed in the pattern of work it has become imperative that organisations have this planning. This will help to save cost. It will also ensure more income. This will keep a business ahead of competition. The focus thereby will improve. Having a proper planning will ensure that business units don’t have to look outside. They can look in house and this will act as a benefit and the changes that succession planning has encountered will be matched. Thus, it is important that business units match the changes in succession planning and devise mechanism that ensures that organisation plan for the vacancies beforehand. References Ante S & McGregor J, 2009, “Apple Succession Planning: Nobody’s Business”, Business Week Beitler M, 2005, “Succession Planning: A hot topic”, retrieved from < http://www.mikebeitler.com/newsletter/07-20-05%20Succession%20Planning%20-%20A%20Hot%20Topic.htm> on March 21, 2010 Columbia K & Levine R, 2004, “The Case for Succession Planning”, Newspaper Association of America Cressman R, 2000, “Farm Family Succession in the 21st Century”, retrieved from < http://www.cressman.net/thesis.html> on March 21, 2010 Derr C, 2002, “Managing strategic human resource: Leadership for the 21st Century”, European Management Journal, Volume 7, Issue 2, Pages 148-158 Dumas A, 2010, “Successful Succession Planning”, Regent Client Newspaper, Volume 16, retrieved from http://www.regentrecruitment.com.au/client_newsletter_vol16.htm > on March 21, 2010 Kelly T, 2008, “The Importance of Succession Planning”, all business.com Messick W, 2010, “The importance of management succession planning”, Ezine Articles, retrieved from < http://EzineArticles.com/?expert=Wayne_Messick> on March 21, 2010 Succession Planning, 2010, “Succession Planning is a process”, retrieved from < http://www.family-business-experts.com/succession-planning.html> on March 21, 2010 Read More