1. Presentation on
SUCCESSION PLANNING
Faculty:
Mr. SAEED
PRESENTED BY:
MUHAMMAD SHARJEEL (60738)
HAFIZ MAAZ AHMED (61037)

2. INTRODUCTION TO HRM
 Human resource is the most valuable and unique asset of organization.
 Human resource management is an exciting, dynamic & challenging task.
 Necessary for all managers to understand human resource policies and activities
in the organization.
 Examines the various HR processes that are concerned with attracting, managing,
motivating and developing employees for the benefit of the organization.

3. Even leaders who profess they’ll never
retire, have to acknowledge that no
one remains at the helm forever.

4. SUCCESSION PLANNING
 Identification and development of potential successors.
 Increased the availability of experienced and capable employees.
 Judge an individual for a position he or she might never been in.
 Ensures constant development of employees to fill organizational role.
 Guarantees that you have employees on hand, ready and waiting to fill new roles.

5. IMPORTANCE OF SUCCESSION PLANNING
 Identification of key job vacancies.
 Strategic consideration of internal candidates for fill those vacancies.
 Assessing job requirements and skills of existing employees.
 Fill the gaps between needs and skills through training and development.
 Identify future leader.
 Keep the mission on track if a key employee leaves.
 The National Association of Corporate Directors (NACD), fewer than one in four private company
boards say they have a formal succession plan in place.

7. WHY TO DO IT?
 Ensuring the organization is prepared with a support plan when key
people leave.
 Saves the time and money incurred in hiring new people.
 Uncovers the weaknesses that your organization must work on to
secure business and financial growth.
 Gives the bird eye view on the talent, present in the organization.

8. WHO IS INVOLVED?
 Generally involves human resource managers or senior leaders of the
company.
 Board members may also be involved for the top positions, including CEOs,
in a company.
 Those involved in succession planning need to consider how these efforts
will be communicated to the organization and its staff members.

9. PROCESS OF SUCCESSION PLANNING
3 step process of succession planning:
Step 1: Identify critical positions
Step 2: Develop inside candidates
Step 3: Assess and develop

10. IDENTIFY CRITICAL POSITIONS
 Critical positions are the focus of succession planning efforts.
 Without these roles, the department or agency would be unable to effectively
meet its business objectives.
 It allows organization to target talent investments to ensure leadership continuity
 Reduce risk from leadership attrition.

11. DEVELOP INSIDE CANDIDATES
 After identifying key positions, management turns to creating
candidates for these jobs.
 Creating means identifying inside or outside candidates.
 Development of high potential employees through various kinds of
training.

12. ASSES AND DEVELOP
 Succession planning requires assessing these candidates and selecting those
who will actually fill the key positions.
 Firms identify more than one candidate for the same role, so that risks of failure
and exit are minimized.

13. STUDY OF SUCCESSION PLANNING IN
ORGANIZATIONS

14. BRANDS

15. QUESTIONNAIRE

16. Questions
Q1: How do you define succession planning?
Succession planning is an ongoing process of systematically identifying, assessing and developing talent, to
ensure leadership continuity, for all decision making positions at various levels and grades in the organization. It
must be in line with the organization’s strategic objectives and should reflect the way organization needs to
change, in order to achieve its strategic goals.
Q2: What’s in your opinion is a perfect succession plan?
A perfect succession plan addresses identification of appropriate capable individuals and their development
thorough training, job rotation and educational activities to succeed in decision making positions at various
grades and levels within the organization.
Q3: Why do think succession planning is necessary for your organization?
Every organization needs backup for their key employees so is ours. We think that it is important to be prepare
when a key employee leaves, so we can fill the gap internally instead of hiring a new employee having no or very
little understanding of company culture, values and processes.

17. Questions
Q4: How do find critical positions in your company?
Usually senior management positions are the key concern like departmental and functional heads because of their
impact on a whole department as well as the organization. Market vulnerable positions like Sales and Marketing
positions are also critical because of the scarcity of jobs available for these functions.
Business specific positions are very important to us. As we are in the tea business, if a key employee leaves over Tea
Supply Chain department, then it will be difficult and time consuming for us to find the successor from outside
because of limited availability.
Positions which have an impact on the organization are also important.
For example, an employee who is although on a junior position but is running the payroll of the company for
several years, it will be better to find the successor from within the organization as he understand the organization
well rather than hiring from outside.

18. Questions
Q5: How do find skills and competencies needed for the position?
The skill set and competency levels needed for any critical position are normally taken from the Job Description and profile
of the employee. Employees are interviewed also if needed.
Q6: What is the criterion to find potential candidates for key positions?
Candidates are considered for the process of succession planning if their skill set matches with the positions, the process is
being done for. Potential candidates must have learning potential and career enhancement.
Q7: What steps are being taken to test and develop the top internal candidates?
Potential candidates when identified for a key position go through a series of training and development process.
First their skill gaps are identified and then all or few of the following steps are taken to fill those gaps:
a- On job trainings b- Extra Exposure
c- Behavioral trainings if needed d- Job Enhancement
e- Job Enrichment

19. Questions
Q8: When it is necessary to hire from outside instead of choosing an internal candidate?
Simple, when management and HR thinks that no one is ready to take up the challenge or it is necessary to fill the
position urgently, then the employee is hired from outside as it takes time to ready an internal candidate for any
position.
Q9: How do you motivate employees when their morale fell down after seeing their peers set on a key
position above them?
If the process is fair and clear for the selection of successors, then there is a very little chance of morale and
motivation problems. In case any such problems arise, the employee is briefed about the process and motivated that
if he work smart and develop himself, he can also be on a key position in coming years.
Q10: What has been the turnover rate of your company in last five years?
The turnover rate of Tapal Tea is around 5-6% annually. The normal rate of FMCG sector is 15%, so the turnover rate
of Tapal is quite healthy.

20. QUESTIONNAIRE

21. Questions
Q1: How do you define succession planning?
A succession plan addresses identification of appropriate capable individuals, and their development through
training, job-rotation and educational activities, to succeed in decision-making positions at various grades and levels
within the company.
Succession planning is dynamic in nature and must be in line with the company’s strategic objectives and should
reflect the way company needs to change, in order to achieve its strategic goals.
Q2: What’s in your opinion is a perfect succession plan?
A perfect succession plan properly identify key positions, potential candidates to fill those positions, their
competency gaps and implemented to fill those gaps to prepare the candidates taking over key positions.
Q3: Why do think succession planning is necessary for your organization?
Because effective succession planning support organizational sustainability by ensuring there is an established
process to meet staffing requirements.

22. Questions
Q4: How do find critical positions in your company?
Technical positions are very important to us. As we are in the manufacturing business, if a key employee leaves
from our top technical staff, then it will be difficult and time consuming for us to find the successor from outside
because of limited availability.
Management positions are the key concern like departmental and functional heads because of their impact on a
whole department as well as the organization.
Sales and Marketing positions are also critical because of their grip on market. If they are in a business for a bit
long they know market very well and it could be very painful to lose them. Another reason is scarcity of jobs
available for these functions.
Q5: How do find skills and competencies needed for the position?
The skills and competencies needed for any critical position are normally taken from the Job Description and
profile of the employee. We also use Electronic Job analysis methods if needed.

23. Questions
Q6: What is the criterion to find potential candidates for key positions?
Asses the current and future needs of key positions, based on either, their strategic plan, goals and objectives or
priority programs and projects.
Match these to the capabilities of existing workforce and develop a plan to manage those gaps that will arise when
individuals in key positions leave or are promoted.
Q7: What steps are being taken to test and develop the top internal candidates?
The plan generally includes a combination of in house and on job trainings and external trainings or courses
needed to develop the candidates to the level of the job requirement.
Q8: When it is necessary to hire from outside instead of choosing an internal candidate?
The absence of a succession can undermine an organization’s effectiveness and its sustainability. But, when
management and HR thinks that it is better to fill the position with some hiring from outside due to any factor, then
the employee is hired from outside the organization.

24. Questions
Q9: How do you motivate employees when their morale fell down after seeing their peers set on a key
position above them?
Usually, there are a lot of career development programs going on in the organization. All the employees go through
them and only the best candidates are chosen to succeed their bosses. It is a fair process and all the employees
understand the process so there is no need to be demotivated for anyone.
Q10: What has been the turnover rate of your company in last five years?
The turnover rate of Continental Biscuits is around 1% annually which is as compare to their main competitor English
Biscuits which has a rate of 4.5% and of the FMCG industry 15% is very healthy.

25. Conclusion
After conducting survey of both organizations on succession
planning, we as per our understanding, conclude that, although, in
terms of employee turnover rate Continental Biscuits Ltd. is far
more ahead than Tapal Tea, but there is a strong Succession Plan is
implemented in Tapal Tea and as their turnover is 4 to 5% annually,
they continuously use and revise their succession plan.

26. THANK YOU 