Meaning of Succession Planning Succession planning is the process or activities connected with the succession of persons to fill key positions in the organization hierarchy as vacancies arise. The focus of attention is towards ‘which’ person the succession planning is needed. The focus is not more on career development but it is more towards what kind of person is required to fill the future vacancy. Succession planning focuses on identification of vacancies and locating the probable successor. For example in succession planning the key concern can be who will be next CEO or what will happen if the Marketing Manager retires in coming March.
Importance of Succession Planning
• Succession planning helps when there is a sudden need arises due to reason or retirement of a key employee.
• Individual employee comes to know in advance the level to which he can rise if he has the ability and aptitude for it.
• Individual employee or successor feels happy when he feels that organization is taking care of his talents and aspirations.
• Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees.
• Organization gains stable workforce and low employee turnover. • Ultimately organization becomes successful in accomplishing its goals effectively.