Literature Review

In the last two decades, most companies did not take retirement seriously. However, the same has changed because most of the employees who started with the firms are now retiring. According to Ramsden (2018), many organizations do not have a viable succession plan. The author claims that a firm that wants to succeed should have retirement and succession plan that works effectively. Likewise, the article states that a feasible retirement plan improves employee satisfaction, which increases productivity levels. Ramsden (2018) suggests several techniques for executing an operational succession plan.

Firstly, the management of a firm should start planning about succession early enough. Planning helps to reduce stress when retirement approaches as well as ensuring a smooth transition altogether. Secondly, Ramsden (2018) asserts that leaders of a business should be open about the plans available for retirement and succession. Employees have a right to know when the firm wants to promote or to relieve them. Additionally, the article states that a competitive organization should groom its junior employees for leadership roles. Preparing employees for more responsibilities will reduce the culture shock experienced during the transition. Ramsden (2018) also insists that businesses should create flexible succession plans. The article is essential in this topic because it represents the sentiments of an expert in people development skills.

An ambitious organization should always ensure the presence of skilled employees who conduct its daily operations. It should maintain a thorough plan that covers retirements and appointments annually. McNamara observes that most firms have an insufficient number of experienced employees to replace the retiring ones. Additionally, the author claims that a small percentage of junior employees in any organization are ready for leadership positions.  McNamara’s article covers the essential values of a prosperous succession plan and the significant steps of ensuring a successful managerial succession.

A prosperous succession plan depends on the commitments of employees and managers in an organization. The article states that employees should cooperate with leaders to define roles and future expectations. Likewise, the firm should have the resources to replace the expertise of the retiring employees. McNamara further asserts that companies should hire qualified employees if they want a smooth succession plan. Notably, skilled employees can adapt to new roles faster than green ones.  The author also claims that companies should conduct annual evaluations on all employees to keep them focused on the set goals. Similarly, the article encourages companies to meet annually with potential managers to train them on how to become productive leaders.

The future ofa company depends on the quality of its succession plan especially when key leaders retire. Similarly, according to Bika’s article, a viable succession plan ensures that all critical positions within the firm have suitableemployees to fill them when necessary. The author insists that organizations should have an effective method to replace employees who retire or resign unexpectedly. Additionally, Bika states that a succession plan is better than recruitment becauseit is safer to look for a suitable candidate within the firm rather than hiring a stranger.  The article focuses on several critical steps involved in the succession plan process.

Primarily, managers should consider the current and future needs of a company before they formulate a succession plan. The article mentions that a succession plan should coincide with the company’s vision. Similarly, Bika encourages managers to scout for critical talents in the firm and nurture them accordingly. Mentoring junior employees will ensure that the organization has a fallout plan whenever key managers retire or resign. Additionally, the author insists that firms should review the succession plan regularly and make necessary changes depending on the current needs. Likewise, Bika asserts that the succession plan should consider all positions in the company regardless of the rank.

A feasible succession plan comes with many benefits that companies should consider. IMD BusinessSchool focuses on four main advantages that come with a viable succession plan. Firstly, the number of employees who qualify for a management position will increase considerably. The program should ensure that each position in the firm has more than one employee who can take over and work efficiently. Secondly, the article claims that an effective plan will reduce the risk of losing skilled managers in the firm because the employees who are left are equally experienced.

The third advantage is that a viable succession plan helps companies to save time and money. The article asserts that the firm will spend less time and money to source for new candidates to fill the vacant positions. Indeed, the company will have qualified candidates within the firm who will be ready to fill up any vacant position. Finally, a succession plan enables a firm to create a department that deals with the selection and mentoring of potential leaders within the firm. The author further states that the department will ensure that the company makes informed decisions to replace retiring employees. Indeed, a succession plan has benefits that can propel a company to greater heights.

Undoubtedly, most companies without a succession plan do not appreciate its value. According to Zuchetti (2016), companies without a succession plan have a small life span. Similarly, the author insists that managers who have not prepared adequately for retirement end up working beyond the retirement age. Such firms cannot allow senior managers to retire because the firm cannot operate without them. The article insists that companies that want to thrive should formulate a viable retirement plan before it is too late.

Moreover, managers should choose the best succession plan depending on the qualities of a company. According to Zuchetti (2016), a succession plan is inevitable if a business depends on a few leaders.Likewise, a viable retirement plan should ensure that the firm does not collapse after its leaders retire. Additionally, the article maintains that the current performance of a business can guide managers to know if the succession plan is an urgent matter. For example, a company that is growing requires a retirement urgently while a collapsing firm does not need that plan. Similarly, an organization should also formulate a retirement plan depending on how soon its managers plan to retire. Therefore, the incumbent leaders will undergo intense training if the current ones intend to retire early and the vice versa.

In summary, the articles mentioned above demonstrate the importance of having a viable succession plan in a company. The authors maintain that a succession plan is an essential factor for any firm that intends to operate for long. Similarly, the articles insist that managers should start grooming junior employees for senior positions early enough. Additionally, a succession plan ensures that experienced workers pass on knowledge to the incumbent leaders. The authors also agree that training employees for managerial positions is cheaper than recruiting new ones. Indeed, the articles are helpful because they demonstrate the importance of having a succession plan in business.

References

Bika, N. (n.d.). Succession planning: a guide to get it right. Retrieved from https://resources.workable.com/tutorial/succession-planning

IMD Business School. (n.d.). Benefits of Succession Planning | IMD Business School. Retrieved from https://www.imd.org/lfb/focused-reflections/benefits-of-succession-planning/

McNamara, C. (n.d.). How to Do Succession Planning. Retrieved from https://managementhelp.org/staffing/succession-planning.htm

Ramsden, J. (2018, June 22). 10 tips for successful succession planning – Investors in People. Retrieved from https://www.investorsinpeople.com/10-tips-for-successful-succession-planning/

Zuchetti, A. (2016, July 18). Business succession planning explained. Retrieved from https://www.mybusiness.com.au/management/1935-business-succession-planning-explained

 
Do you need high quality Custom Essay Writing Services?