Question

What is succession planning and what are its benefits? What are the three stages of an effective program for developing high-potential employees?

Answer 1

As described by Raymond A. Noe, John R. Hollenbeck, Barry Gerhart and Patrick M. Wright in their book "Fundamentals Of Human Resource", succession planning is the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant. Succession planning offers various benefits. It forces senior management to regularly and thoughtfully review company's leadership talent. It assures top level management talent is available. It provides a set of development experiences that managers must complete to be considered for top management positions, so the organization does not promote managers before they are ready. It also helps attract and retain ambitious managerial employees by providing development opportunities.

The three stages of an effective program for developing high-potential employees are:

1. Selection of high-potential employees - Outstanding performers and employees who have completed elite academic programs are selected by organization.
2. Developmental experiences - As employees in developmental experiences, the organization identifies who continue to show qualities associated with success in top jobs, such as communication skills, leadership talent, and willingness to make sacrifices for the organization. Employees who display these qualities continue to be considered high-potential employees.
3. Active involvement with the CEO - Active involvement with CEO leads to exposure of these employees to the organization’s
key people and gives them a understanding of the organization’s.