hrm section 6a succession planning

7/30/2019 HRM Section 6A Succession Planning

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SUCCESSION PLANNING


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SUCCESSION PLANNINGA careful and considered plan of action ensures that the least possibledisruption to the persons responsibilities and therefore the organizations

effectiveness.Examples include such a person who is

suddenly and unexpectedly unable or unwilling to continue their rolewithin the organization;

accepting an approach from another organization or external opportunitywhich will terminate or lessen their value to the current organization;

indicating the conclusion of a contract or time-limited project; or

moving to another position and different set of responsibilities within theorganization.

A succession plan clearly sets out the factors to be taken into accountand the process to be followed in relation to retaining or replacing theperson.


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SEVEN-POINTED STAR MODEL FORSYSTEMATIC SUCCESSIONPLANNING

Make the Commitment

Assess Present Work/People Requirements

Appraise Individual Performance

Assess Future Work/People Requirements

Assess Future Individual Potential

Close the Developmental Gap

Evaluate the Succession Planning Program


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SUCCESSION PLANNINGTo effectively do succession planning in your organization,

I. You must identify the organizations long term goals.

II. You must hire superior staff.

III. You need to identify and understand the developmental needs of youremployees.

IV. You must ensure that all key employees understand their career paths

and the roles they are being developed to fill.

V. You need to focus resources on key employee retention.

VI. You need to be aware of employment trends in your area to know theroles you will have a difficult time filling externally


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SUCCESS STORIES GENERAL ELECTRICS (GE)

McDonald's

MOTOROLA

PROCTER & GAMBLE (P&G)


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GENERAL ELECTRICS Succession planning is an ongoing, rigorous and challenging process

at GE.

At GE, succession planning was not confined to only the top

management, but was applied across all tiers of management.

The managers of GE's various businesses were encouraged to

identify potential candidates and fulfill their development needs,

and transform them into efficient leaders ready to take up top jobs

at the company.

As part of CEO succession planning, GE shifted its key candidates

from one business to another to enable them to gain experience

across all its businesses.


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GENERAL ELECTRICS The company used mainly annual performance reviews for identifying

potential candidates, until the early 1980s.

However, after Welch took over as the CEO, the succession planning

process at GE became a more systematic process, with the use of various

analytical tools and the involvement of the top management in leadership

development and succession planning.

Since early 1980s, the annual Human Resource Reviews (popularly called

Session C) had been at the heart of succession planning at GE.

The succession planning by Welch for his post had started way back in

1994, when Welch, with help of Bill Conaty and Chuck Okosky, both vice-presidents, HR and Executive Development, created a list of essential

qualities, skill and characteristics an "ideal CEO" should possess.


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GENERAL ELECTRICS The list mainly included elements such as integrity and values,

vision, leadership, experience, edge, stature, fairness, energy,

balance, insatiable appetite for enhancing knowledge, courageousadvocacy, and most importantly, stomach to play for high stakesand being comfortable operating under a microscope.

The three candidates for the top spot at GE were Immelt, W. JamesMcNerney, CEO of GE Aircraft Engines, and Robert L.Nardelli,President and CEO of GE Power Systems.

Welch wrote in his autobiography, that choosing between the finaltrio "was the most difficult and agonizing [decision] I ever had tomake.All the three exceeded every expectation we set for them.

According to Welch, it was his nose and his gut, which promptedhim to select Immelt.


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McDonalds McDonalds was tested in CEO succession planning in 2004.

The then CEO, Jim Cantalupo, died unexpectedly in April 2004.

The Board was to able to replace him in an orderly manner sixhours later.

A few weeks later, the replacement CEO, Charlie Bell, was

diagnosed with cancer, and the board again was able to make

an orderly replacement. Four days into his tenure as CEO, Jim Skinner, called a meeting

of top executives and outline the strategic direction.

He said, "I had three goals:

long-term sustainable growth

talent management and leadership development

and promoting balanced, active lifestyles, which meant trying to be part

of the solution to those things that were problems not only for

McDonald's image but for society as a whole


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McDonalds Even though the Board of Directors took only hours to name a

successor, McDonalds has been grooming the potential CEO for

years. When the time comes for the new guy to lead, he is ready.

A brief look into Skinners career in McDonalds shows that to be

the case.

Skinner has been with McDonald's since joining the company in

1971 as a restaurant manager trainee and is a former head of its

European business.

In July 2004, as part of a management shake-up designed to

support Bell, he was given oversight of McDonald's operations in

Asia, the Middle East, Africa and Latin America. The fact that just four days into his tenure as CEO, he is able to

come up with strategic direction, shows that Skinner is really

prepared for the job.


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McDonalds McDonald's has assigned responsibility for succession planning

design to a key group staffed with specialists.

The specialists include industrial-organizational psychologists,whose role is to serve as experts in the design process.

McDonald's goals are to obtain and retain a quality workforce. The

company identified "People" as one of its three global corporate

strategies and outlined a new business strategy called McDonald'sPeople Promise.

As part of this promise, McDonald's reorganized its HR department

into three areas: The HR Design Center, a unique group of subject matter experts in

charge of developing, testing and implementing HR systems andtools.

The HR Service Center, which focuses on administrative,transactional, and franchisee consulting needs

HR Business Partners, which provides strategic HR consulting to lineand staff organizations


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McDonalds The HR Design Center is largely responsible for designing and developing

the systems that drive succession planning and employee development.The center is divided into four practice areas:

Measurement and Organizational Effectiveness - Projects include creationand development of the annual Employee Commitment Survey, design ofthe Human Resources Scorecard and standardizing HR data. The DesignCenter also partners with other departments to identify best practicesthat positively affect turnover, productivity, customer satisfaction, sales

and profitability.Leadership Assessment and Development - Projects include executive

succession planning and 360-degree feedback and coaching. Specialists inthis area assess senior leadership and help set development plans forcompany leaders.

Competency-Based People Systems and Culture - Specialists address

selection, performance development, assessment and planning. They alsoidentify development needs, design curricula, build staff models, definejob competencies and create performance appraisal documents.

Recruitment and Retention - Specialists help in designing interviews andselection processes.


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Motorola, Inc An electronic and wireless communications company based in Illinois,

United States of America.

In the late 1980s due to changing demographics in its workforce,Motorola began to redesign its established succession planning process

to make the development of women and minorities a priority.

Through succession planning Motorola has significantly improved the

outcomes for women in its organisation.

1989 Motorola had two female vice presidents.

In 1991, succession planning process was started, known as the

Organisation and Management Development Review (OMDR) being

amended to include diversity objectives.

1997, six years after the modification of Motorolas succession planningto accelerate the advancement of women and minorities within the

organisation, Motorola had forty female vice presidents, including

seven women of colour.


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Motorola, Inc Setting of goals and commitment

Within ten years the number of women and minorities at alllevels of management should be representative of the numberof women and minorities in the available talent pool.

Every year at least three women and minorities would beamong the twenty to forty people appointed vice-president.

The program Motorolas OMDR guarantees that women and minorities are

identified as high potential managers and move along through theorganisation.

each division to submit lists of candidates in four categories: whitemen, women, minorities and technical staff.

Career development plans are prepared for each high potential andtheir progress through the company is then tracked.


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Motorola, Inc

A replacement chart is prepared that identifies key positionsand three people who could fill each one was developed.

Line one is the immediate successor.

Line two is the person who should success the incumbent ifthe company had three to five years to prepare.

Line three is the most qualified woman or minoritycandidate at that time, in addition to any women orminority person already on line one or two.


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Procter & Gamble When Procter & Gamble global business units president Susan

Arnold announced in March that she was leaving P&G, the questionresurfaced: Who else could possibly replace A.G. Lafley, the

company's long time CEO?

Since Lafley took the helm at P&G in 2000, he has increased sales

110%, to $84 billion, and nearly tripled profits, to $12 billion.

He followed rigorous leadership program called Build From Within.

It microscopically tracks the performance of every manager, making

sure that he is ready for the next slot.

Each of the top 50 jobs already has three replacement candidates

lined up We promote from the inside, because that's our primary source of

talent


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Procter & GambleExample

If a talented young brand assistant wants to become, say, a COO,P&G tries to give him as broad experience as possible.

The company might make him the assistant manager of Cascadedetergent.

Later he'll run laundry products in Canada, before eventuallyoverseeing all of Northeast Asia.

If you train people to work in different countries and businesses,you develop a deep bench.

The company maintains a comprehensive database of its 138,000employees.

Every employee is tracked carefully through monthly and annualtalent reviews.

In these sessions Proctoids (freshers) discuss their business goals,

their ideal next job, and what they've done to train others. When a position opens, head of HR draw up a list of employees who

are ready to move immediately to another country, say, an EasternEuropean country, complete with their performance reviews.

The beauty of the system is that they can fill a spot in an hour.

hrm section 6a succession planning

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