Flashcards in Chapter 8 Succession Management Deck (22)
What is succession management?
The process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the organization.
What is replacement planning?
The process of finding replacement employees for key managerial positions.
How did replacement planning evolve into succession management (4)?
1. Broadening the focus
2. Expanding the time horizon
3. Creating a talent pool of replacements
4. Improving the evaluation system
How fast can Macdonalds replacement a CEO? What is the typical time frame at other companies?
6 hours vs. 6 months
What was a flaw with the original succession planning in regards to focus?
People assumed that replacements were replicas o f the current jobholders. They assumed that the future was stable with little change.
Whats the big difference between replacement planning and succession management?
Replacement planning uses the job as the starting point whereas in succession planning the starting point is strategy.
Whats the difference between replacement and succession in terms of time horizon
Replacement was based on a short time frame (1 year)
Succession is on a longer time frame (2+ years)
*because this harder, Succession uses talent pools instead of identifying just one replacement.
Whats the difference between replacement and succession planning in regards to talent pools
-these days we have less talent to pick from in our organizations because flatter organizational structure. key is to develop several multiple successors.
-should consider external as well
Whats the difference between replacement and succession planning in regards to rating system?
traditional used a single rater. - info was out of date and unreliable.
-with succession there are are several raters - increasing use of 360 degree feedback
What are reasons for succession management (13)?
1. Provide opportunities for high-potential workers
2. Identify replacement needs
3. Increase the talent pool of promotable employees
4. Contribute to implementing the org's strat plan
5. Help individuals realize their career plans
6. Tap the potential for intellectual capital
7. Encourage the advancement of diverse groups (not just white men)
8. improve employee's ability to respond to changing environmental demands
9. Improve employee morale
10. Cope with the effects of voluntary separation programs
11. Decide which workers can be terminated
12. Cope with the effects of downsizing
13. Reduce headcount to essential workers only
What are the 5 steps involved in the succession management process?
1. Align succession management plans with strategy
2. Identify the skills and competencies needed to meet strategic objectives
3. Identify high potential employees
4. Provide developmental opportunities and experiences
5. Monitor succession Management
Step 1: align strategy - two things to do:
1. Start with the business plan
2. Use environmental scanning to try to predict where the org will be in 3, 5 and 10 years
Step 2: Identify the skills and competencies needed - what are the two approaches?
1. Job-based approach (doesn't work if job changes rapidly)
2. Competency-based approach (measurable attributes that differentiate employees. hard and soft skills, produces more flexible employees)
What are the 3 types of competencies?
1. Core competencies
2. Role or specific competencies (shared by different positions within an organization)
3. Unique or distinctive competencies (apply only to specific positions)
Step 3: Identifying high potential employees
What are the 4 approaches to identifying managerial talent?
1. Temporary replacements (if someone is coming back to the position)
2. Replacement charts - focus on current strengths and not necessarily future oriented nor aligned with business goals
3. Strategic replacement
4. Talent management culture - "why would a talented person want to work here?" - the employee brand
Step 4: Provide Development opportunities and experiences.
What are the 5 development methods?
2. Job rotations
3. Special Assignments
4. Formal training and development
5. Mentoring and coaching
What is job rotation?
A process whereby an employee's upward advancement in the hierarchy of an organization is achieved by lateral as well as horizontal moves. *not necessarily more responsibility or more money.
Step 5: Monitor Succession Management - what do you use to monitor this?
What can metrics do to help succession management?
1. Increase engagement scores
2. Increase positive perceptions of development opportunities
3. Higher potential's perceptions of the succession management process
4. Higher participation in developmental activities
5. Greater number involved in the mentoring process
What are the advantages of employee role in succession management?
1. Invites employee participation
2. Gain employee commitment to and ownership of the plans
What are the disadvantages of employee role in succession management?
2. Risk of the spotlight
3. Selection bias
4. Unpredictable futures