Succession planning in HRM

Succession planning is an integral part of any organization in the long run. By definition succession planning means identifying, grooming, mentoring & training potential employees for higher senior management positions in the organization. This ensures the smooth operations of the business even after key management persons have moved out of the organization dude to resignation or retirement (Kenton,2022).

Importance of succession plan

As the future of the organization is greatly dependent on the successors taking over key management roles an effective succession plan is of great importance to any organization. A core part of going concern concept includes the fact that the organization continues for the foreseeable future. An organization requires both financial capital and human capital to sustain business operations in the long run. Investors are often interested about the succession plan of the organization as the future of their investment depends on the current and future leaders of the organization. Having a sound succession plan is of great importance to both the organization as well as its employees. When the employees are made aware that they are on a path to a better career growth prospects within the organization the efficiency of the employee would increase due to the motivation factor and the employee's loyalty to the organization would also definitely increase which can be identified as a win win situation (Hirsh, 2000).

The Role of HR in succession planning

By tradition senior management does not focus on succession planning as one of their major tasks. The senior management does not commit their time to focus on succession planning voluntarily. They are more focused on achieving targets, business growth, profit maximization and increasing market share. Therefore it is crucial for HR to act as a facilitator to the management in identifying and planning future successors of the organization. Even though potential successors are identified they may not possess the required skills or qualifications. Succession planning often includes training, educating and mentoring of potential candidates which is a major role played by HR in succession planning (Day, 2007).

Source: (www.aihr.com)

Employees awareness about the organization's expectations as a successor is important. Employees work better, are happier and are more efficient and enthusiastic if they see a clear career advancement path which would be a motivation factor for them to word harder to achieve their personal career advancement goals.

References 

Kenton W., 2022. Understanding Succession Planning [Online] Investopedia Available at <https://www.investopedia.com/terms/s/succession-planning.asp> [Accessed 16 April 2023]

Hirsh, W., 2000. Succession planning Demystified. [Online] Employment-studies.co.uk Available at: <https://www.employment-studies.co.uk/system/files/resources/files/372.pdf> [Accessed 16 April 2023]

Day, D., 2007. Developing Leadership Talent. [Online] Shrm.org Available at: <https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert views/Documents/Developing-Leadership-Talent.pdf> [Accessed 16 April 2023]