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Go Back       IAR Journal of Business Management | IAR J Bus Mng, 2021; 2(1): | Volume:2 Issue:1 ( Feb. 10, 2021 ) : 119-126
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DOI : 10.47310/iarjbm.2021.v02i01.018       Download PDF       HTML       XML

A Survey of Influence of the Organization Structure on the Implementation of Succession Planning In the Civil Registration Departments in Eastern Region, Kenya


Article History

Received: 03.01.2021, Revision: 14. 01.2021, Accepted: 31. 01.2021, Published: 10. 02.2021

Author Details

Julius Mwiti Itumbiri, Dr. Kubaison Thiaine and Dr. Rita Lyria

Authors Affiliations

Department of Accounting and Finance in the School of Business and Economics Meru University of Science and Technology, Kenya

Abstract: Succession planning is the organization's behavior that ensures the organization is constantly provided with efficient management. Succession difficulties are often related to relationship problems, such as top management conflict and firm’s problems, rather than leadership issues. Despite there being an urgent need for succession planning, it has not been fully embraced especially by governmental organizations. The main objective of this paper is provide a survey of influence of the organization structure on the implementation of succession planning in civil registration departments in Kenya. The target population for the study was civil registration employees in the Eastern Region who number 212 in total. A sample size of 139 was used, which represent over 50% of the population. Systematic sampling technique was used to take the sample. A closed ended survey questionnaire was administered to collect primary data. The R estimate is 0.801 which was sufficient and conclusive. The results showed that determinants of implementation affects succession planning in civil registration departments, and it should be the concern of all departments or all organizations. The study therefore concluded that succession planning is an important corporate strategy which every company should embrace in order to realize business success.


Keywords: A Survey of Influence Planning In the Civil Registration Departments in Eastern Region, Kenya.

Introduction

It has been acknowledged by scholars that succession planning is a challenging idea in open organizations. This has prompted the improvement of various inquiries to understand the idea. For instance, as indicated by (Hills, 2009), succession planning is more than filling the top posts. It is a shrewd ability in the board system that can drive the maintenance of continuity in the organization and ensure that the organization has the right staff it needs to meet its future needs in the business environment. Succession planning is a vital way of recognizing a staff’s current and potential skills that can be enhanced to better a company’s performance in the future. Succession planning guides organizations with efficient procedures to identify, develop and promote the development of employees with potential in the organization (Leibman, Bruer, and Maki, 1996).

As indicated by (Rothwell, 2013), a usable succession plan is one that is driven by the general destinations of an organization. A usable succession plan entails articulating better correspondence for people's vocation ways, creating better plans for development and formation of a reasonable framework for the human resource fraternity. Consequently, succession planning involves profession advancement; a procedure that gets individuals ready for progressively senior positions in the corporate chain of command. Its viability is dependent on the creation of a succession plan that empowers individuals with the right abilities and aptitudes required for different positions and carrying out policy initiatives (Mahfoozi et al., 2018).

(Rothwell, 2010) characterizes succession planning as an exhaustive and orderly way to deal with the structure, authority and ability pool to guarantee that both the present and future administration needs are met in a manner that guarantees coherence. Succession planning is a cognizant choice by an organization to encourage and advance the perpetual improvement of representatives and guarantee that key positions keep up some proportion of security, and in this manner empowering an organization to accomplish its business obligations while simultaneously fabricating ability to address any rising issues that can influence business congruity. In this way, succession planning involves distinguishing potential successors and molding them in a manner that brings out the best of their qualities. (Rothwell, 2010) suggests that succession planning in the business world has been practiced because of the acknowledgment that some positions are the lifeblood of organizations and too critical be left empty.

Succession planning isn't an issue that many open firms in the world address in an efficient manner. This can be shown by the dilemma that organizations face when seeking to replace exiting staff. Most of the workforce is made up of younger generation popularly known as generation Y. This generation is not well experienced to replace outgoing executives. Most of the older executives are exiting workforce and need to be replaced.

There is a need to integrate generation Y into initiative situations to empower the organizations to outlast their authors. Workers have to a great extent turned out to be global and there is expanded challenge among industry players and from global organizations for their abilities. Therefore, worker maintenance, which is a central point in succession planning has turned into a significant issue for firms looking to have and to keep up a focused edge in the organization.

A good succession planning framework will search for ability both internally and remotely (Marreli, 2010). The hiring of new talents from external environment is amazingly beneficial particularly if the organization stands to profit as far as new thoughts or new innovation are available (Bayham, 2010). To proceed effectively, a succession of the board execution gives an organization an upper hand over the others particularly the public organizations. A well-planned succession program in an organization is a good head start that enables companies to have an upper hand when compared with competitors (Bayham, 2010). The succession planning procedure is additionally advantageous since the representatives are presented with development programs before being offered the board positions and this improves both adequacy and productivity (Bayham, 2010).

Organizations that have entrenched succession programs in their systems are better able to adapt to different situations. They will have the ability to deal with any troubles that may rise. This reduces the work load of the executives and in turn ensures that the person who takes over will be in a position to be up to date without much difficulty (Froelichet, 2009). (Handy, 2013) suggested that by putting succession planning program in place, an organization can cut down turnover rates, increase staff motivation thus increase their work ethic and ensure the most qualified staff are promoted. This will ensure that the organization put in place employees who will suit their needs (Solomon, 2009).

It is obvious that every organization aims to achieve its long and short-term goals. Hence, the management of organizational resources becomes crucial to the attainment of the goals of an institution. However, the management of many organizations are not well prepared to constantly and continuously go through efficient and effective preparations to lead the organization in achieving the set succession objectives. According to (Pandey and Sharma, 2014), there is a quiet crisis sweeping the world due to the lack of ensuring effective succession in organization of all types, sizes and industry categories. As many as 20% of the senior leaders in top 5000 companies and 43% of the people who own and operate the closely held businesses that comprise 80% of the North American economy could retire within the next five years. Succession planning is the organization's behavior that ensures that the organization is constantly provided with efficient management. Further, the situation is adverse when their productive staffs move to other enterprises; they are often needed to identify, hire, and recruit new staff, which is often very inefficient (GoK, 2012). Other progression challenges the Civil Service faces are to incorporate succession management gaps because of staff decrease through the Civil Service Reform Program, absence of extensive plans of administration, unsustainable compensation bill and enlistment ban in the Civil Service among others.

(Ibrahim Soufani, & lam, 2013) did a study on the influence of succession planning practices on the performance of selected non-governmental organizations in Winam Division of Kisumu County in Kenya. The study found that there was a significant and a strong positive relationship (г=0.794) between human resource planning attributes such as talent retention and performance of health service NGOs in Winam Division. The study concluded that human resource planning was a key SP practice that enhanced organizational performance.

Succession troubles are frequently identified with relationship issues, for example, top management struggle and the firm's issues, instead of leadership issues. In spite of this critical requirement of succession planning, non-governmental organizations have not fully acknowledged it. This is a reasonable sign that succession plans are unavoidable as associations keep to battle with making a conventional procedure planned for distinguishing, creating and holding a high potential pool of workforce inside the association to keep up association yield that permits smooth transmission of obligations. A good succession plan by an organization ends up to basically improving productivity management within an organization. The evidence of succession problems and the fact that a great number of firms in Kenya are about to start succession processes is reason enough to study the topic for the benefit of the national economy. Furthermore, little has been written about factors influencing the implementation of succession planning in the civil registration departments in Kenya.

Literature Review

Organizational structure alludes essentially to how occupation undertakings are officially isolated, gathered and facilitated. Organization structure is frequently reflected in the organizational diagram which is the obvious portrayal of the considerable number of exercises and procedures occurring in an organization (Taylor & McGraw, 2014). (McShane and Von Glinow 2013) characterized the organization structure as the division of work just as the examples of coordination, correspondence, work process, and formal power that immediate organizational exercises. The organizational structure is about division, and the coordination of work to guarantee the accomplishment of normal organization objectives. The division angle guarantees that the work is appropriately partitioned among individuals in the organization and the coordination perspective guarantees that every part is effectively doing his/her duties.

(Nene and Pillay, 2019) investigated the effect of organizational structure on organizational effectiveness in Texas Grand Prairie Fire Department. The results have shown that environment, technology, size, strategy, goals, culture and philosophy impact on organizational structure and there is a definite connection between organizational effectiveness and organizational structure. Hao and colleagues (2007) studied about the relationship between organizational structure and performance, especially through organizational learning and innovation, based on evidence from Austria and China. The findings have shown that in a hi-technology or knowledge intensive industry, organizational structures affect organizational performance mainly through innovation and organizational learning. But in traditional industry, such as labor- or capital-intensive industry, organizational structure impacts organizational performance mainly through innovation.

The detachment of work prompts expanded specialization and proficiency. Coordination can be accomplished through conventional pecking order, casual correspondence, and institutionalization (McShane and Von, 2013). The structure of an organization influences its encouraging toward achieving its objective (Pandey, S., and Sharma, D., 2014). The procedure may not be all-around actualized if the structure is broken (Taylor & McGraw, 2014). The effectiveness of succession planning in construction companies as studied by (Mokhber, 2017) in Arizona State revealed that the companies that put more effort and focus into their succession plan had a higher level of success in their leadership transition. The study focused on top executive succession in which slightly more than 50% of the companies had implemented plans to develop the incoming executives.

(Couch, 2013) kept up that succession planning is more than simply ascending the employment ladder. It includes more extensive improvement in the organization. Severally the expressions "succession planning", "substitution planning", "official labor planning" and "profession planning" are utilized reciprocally to mean something very similar, however some slight differentiations do exist. In recognizing substitution planning and succession planning, (Kathryn and Martins, 2014) expressed that "while substitution planning centers around explicit up-and-comers who could fill assigned administrative positions, succession planning is a method for distinguishing people with high potential and guaranteeing that they get fitting preparing and occupation assignments. This differentiation, in any case, lies in the specialized elucidations.

The structure prevalent in any organization can be arranged into robotic and natural structures; an empowering organizational setting comprises of a mix of representative and pioneer attributes (worker and pioneer incomprehensible reasoning), HR rehearses (work pivot), organization structure (framework organizational structure, physical vicinity), culture (shared client situated culture), and social connections (coordinating organization assets) (Nene, S. W., and Pillay, A. S., 2019); The organizational structure is also evident in areas such as chief's basic leadership authority, and formalization of an administrator's errands. In different organizations, researchers have recognized structures that are helpful for effectiveness and structures that are helpful for development.

Thompson (2017) pointed out the irrationality of organization for sureness and adaptability, which to a huge degree spins around the short-run. In their fundamental work on development, (Nene, S. W., and Pillay, A. S., 2019) recognized organization structures that are helpful for stable conditions (for example mechanical organizational structures) and organization structures that are suitable for advanced conditions (for example natural organization structures). (Lee and Lee., 2007) alluded to the confusing idea of adaptability and proposed that different organization structures speak to specific methods for tending to the adaptability mystery of succession and safeguarding. Corporate updates give organizations an uncommon chance to recognize the steady spine and set up those components ready for dynamic change (Aghina, et al., 2015).

The National Registration Policy of Kenya outlines a framework that enhances implementation of civil registration activities to realize strategic goals of the country in regard to the universal birth and death registration coverage (USAID, 2017). Civil registration services are placed in the Ministry of interior and Coordination of National Government. The civil registration operations and services are well integrated with the health information systems. Realization of this integration was realized through the creation of CRVS unit at the Ministry of Health (USAID, 2017). The Ministry of health guides the improvement of civil registration in health sector and coordinates all the CRVS activities. CRVS unit analyzes statistics related to the medically certified causes of death and data quality assurance (USAID, 2017). In the year 2015, the Kenyan government launched the integrated Population Registration System that harmonized all citizens’ information. Data from the Civil Registration System is fed to the IPRS and links with other registration citizen registration agencies.

(Meharabani and Mohamed, 2014) states that there are ten best practices that organizations can implement when it comes to succession planning. These include: CEO and board involvement, constant review of talent, taking note of able successors, ensuring accountability on the part of the top level management, synchronizing the organization strategic direction with the succession plan programs, handling of the emotional and political circumstances that come with succession planning, ensuring performance planning.

Human Resource Planning: It is the process in which human resource requirements of an organization are identified and how those requirements are addressed (Bulla and Scott, 1994).. Organizations need to market themselves to potential employees just as they do to their customers. They need to appear as though it is the best place to work. Human resource planning entails putting the right people in the right jobs. The main obstacle for human resources is not only luring the right people to the company but also ensuring talented employees don’t leave. Specialist organizational knowledge that ensures the creation of value and gaining upper hand over other organizations are important aspects to be considered in Human Resource planning.

Armstrong (2009) states that performance management connected is how an organization’s goals are achieved though target goals that have initially been set for the employees. Effective performance management can make ensures attainment of business objectives while ensuring employees are performing optimally (Cornelius, 1999). Staff should be allowed to express their ambitions on how to progress there. Good performance appraisal system enhances staff ability. In recent times we have had junior staff employees doing appraisals of their managers through anonymous questionnaires. The purpose is to improve the managers’ effectiveness. Also it enhances employee empowerment.

Career Management incorporates employee recruitment, employee development, special assignments, lateral moves, and positions of development and support for employees who want to develop, (Armstrong, 2009) There are several career management practices such as coaching & mentoring, , performance appraisal and career counseling and succession planning. Walker (1985) states that as a person gets older, money is no longer the only motivator. Additionally, examples of career management practices in companies include, definitive career paths and progression, career planning, computer assisted career management, opportunities for training and development. Kanard (1988) state it is important to have a clear career path for the employees. Career paths should have 4 basic processes, progression, flexibility, organizational needs and specific skills such as knowledge and educational training.

Albeit past explores had built up the significance of appropriate succession planning, numerous organizations kept on working without a proper succession plan. A 2014 study of 711 human resource supervisors found that albeit 80 percent of the administrators accepted that succession planning was basic, not exactly 50% of their organizations had a succession plan (Taylor and McGraw, 2014). Two different overviews found that not many organizations have legitimate succession plans arranged to supplant their administration, a 2009 study by RHR International and Chief Executive magazine discovered 40 percent of CEO's were not set up for succession (Allen, 2015). The investigation found that lone 35 percent of thirteen hundred CEO officials had a succession plan. The two examinations demonstrate that half of organizations are not arranged or are not at present getting ready for initiative succession. Research has demonstrated that officials are hesitant to get ready for succession for different reasons, for example, dread of retirement, dread of the obscure, dread of losing control, dread of death, absence of interests outside of work, and a solid feeling of individual connection to the organization (Kraime et al 2013). Another test in succession planning accompanies breaking down and choosing the right successor for the organization.

Rothwell (2010) has expressed that breaking down, choosing and building up the correct applicant is an enormous piece of succession planning if these means are not made the probability that authority change was fruitful. The choice of an ill-equipped or wrong successor can make harmful impacts after the administration succession. Rothwell (2010), directed a broad writing search of business magazines, diaries and significant reports planned for auditing business and scholastic writing on the theme of business succession planning. The reason for existing was to permit the tremendous amount of proof and conclusions to be contextualized and to empower a superior comprehension of the key subjects inside business succession planning. They demonstrated that there was an absence of research about the territory of succession planning. It was argued that succession planning requires a consistent speculation of time, assets and backing of top administration. Development and implementation of succession planning was also shown to simply raise the chances of success and not to guarantee them.

Research Methodology

The research embraced a descriptive survey research design. The significant motivation behind engaging descriptive is that it provides the depiction of the situation as it exists. The structure is embraced as it would help show drifts in mentalities and conduct and empower speculation of the discoveries of the descriptive. This structure is viewed as proper for this investigation since it spares time, costs and the measure of value data (Laberge, 2014).

Kombo and Tromp (2006) state that descriptive study approach is used to describe how the state of affairs exist. It assists a researcher in investigating variables without manipulating them. The target population for the study constituted of 212 civil registration employees in Eastern Region. The use of this target population is justified as it provided an ideal sample of civil registration employees.

Table 1: Target population

Department

Frequency

Percentages

Supply chain

19

9

Finance

17

8

Warehouse

7

3

Quality assurance

11

5

Administration

125

59

Human resource

8

4

Maintenance

25

12

Total

212

100

Source: HRM civil registration (2020)

Systematic sampling technique was used to take the sample. Systematic sampling is a probability sampling method where a sample is drawn by applying a calculated skip interval to a sample frame.

We employed the use of Statistical Package for Social Sciences (SPSS) version 26 for data analysis. Factual tests was applied to check the reliability and normality of the information and connection investigation was directed so as to see the effect of free factors over the needy variable. The relationship coefficient is an ordinarily utilized proportion of the size an effect: values of ±.1 represent a small effect, ±.3 is a medium effect and ±.5 is a large effect. Data presentation was done with the help of tables.

Results and Discussions

The objective of the study was to influence of the organization structure on implementation of succession planning. In order to establish how well employee retention strategies are implemented respondents were to respond statements on a Likert scale of 1 to 5 where, 1 meant that the respondents Strongly disagreed,2 just disagree, Disagree, 3- neutral 4 they moderately Agreed and 5 meant that they Strongly disagreed. For purpose of interpretation, a mean score of 0≤1.5 means that the respondents strongly disagreed, between 1.50 ≤ 2.50 means they disagreed, 2.50 ≤ 3.50 they were respondents were neutral, 3.50 ≤ 4.50 means they agreed and above 4.50 means the respondents strongly agreed.

Table 2: Test for employee retention strategies


Organization structure and implementation of succession planning

M

SD

a.

My department structure has a succession planning process which targets young employees

3.27

1.064

b.

My department structure prepares employees to be promoted to more senior positions from within.

2.61

1.21

c.

Talented employees are targeted for promotion in the succession planning

2.38

1.26

d.

The department structure aids implementation of succession planning in this organization.

3.28

1.1

e.

The succession planning in my department is implemented by top managers only

3.1

1.14

f.

My department’s succession planning is clearly communicated to all employees

3.14

1.31

g.

Department managers provide sufficient funds for implementing succession planning

1.6

1.24

h

The structure makes it easier for top managers to groom their successors

3.01

2.56


Total

3.70

1.34

Organization structure has helped them master their current jobs and motivate prospective succession planning in this department with a standard deviation 1.34 and a mean 3.70. This implies a slightly positive correlation between organization structure and succession planning in the civil registration departments hence need to improve on the proper organization structure that will see proper reward systems hence employee retention. In this view, a study conducted by (Luthans, 2000) showed that organizational structures that emphasis on recognitions done in the form of appreciations and by offering autonomy to the employees enables the companies to engage the employees with the workplace and keep them motivated. Though, the concept of recognition is not new, but in the present business environment, it is turning into a more strategic approach in aligning the business objectives with the desired behaviors of employees (Arthur, 2018).

Cronbach’s Alpha for the Research Constructs

Consider table 3.

Table 3: Cronbach’s Alpha for the Research Constructs

Construct

α- value

Succession planning

0.89

Determinants of implementation

0.63

The acceptable minimum limit of alpha is 0.60. Table 4.7 shows Cronbach’s alpha coefficient of the succession planning variable as 0.89 and that of determinants of implementation as 0.63. Therefore both constructs satisfied the requirements of the test. Hair et al., (2003).

Descriptive Statistics

Descriptive statistics of the variables succession planning and determinants of implementation are presented on table 4.8. These statistics include the mean and standard deviation of the variables. A mean score of 3.40 and standard deviation of 0.62 on a 5- score Likert scale shows that Civil Registration Department managed to retain their employees to a reasonably great extent. Similarly and standard deviation of 0.63 and a mean score of 3.90 indicates that succession planning is relatively practiced in Civil Registration Department extent. These findings indicate that succession planning is associated with implementation strategies.

Table 4: Sample Means and Standard Deviations

Construct

Mean

SD

Determinants of implementation

3.40

0.62

Succession

Planning

3.90

0.63

Effects of determinants of implementation on succession planning

A Simple linear regression model was applied to evaluate determinants of implementation on succession planning. Regression analysis using SPSS V26.0 gave results as shown in tables 5, 6 and 7 set out below. The regression statistics set out previously shows that the coefficient of correlation between determinants and succession planning was 0.548.

Table 5: Regression Results: Statistics for the Coefficient of Correlation and Coefficient of Determination

Multiple R

0.948179

R Square

0.800865

Adjusted R Square

0.875892

Standard Error

0.371815

Observations

102

The regression model provided an R square value of 0.801 in table 4.9. This implies that the predictors used in this model can explain 80.1% in variation of dependent variable. The coefficient of correlation indicates the extent of linear relationship between the two variables. Therefore the results show a moderate linear relationship at 94.8% between determinants of implementation and succession planning. The regression statistics further show a coefficient of determination (R Square) value of 0.801. The coefficient of determination measures how well the sampler regression line (the line of best fit) fits the data. Therefore 80.1% of variations in succession planning in the civil registration department were accounted for by corresponding variations in employee retention. The rest of the variations (37.18%) were accounted for by some other unexplained factors contained in the constant, βo, or some error. The results of analysis of variances are presented on table 4.10 below. The analysis of variances aims at obtaining the statistic F, which is a test for statistical significance of the regression equation as a whole.

Table 6: Regression Results: Analysis of Variances (ANOVA)


df

SS

MS

F

Significance F

Regression

1

2.621

2.621

8.043

0.008

Residual

100

10.4631

0.327



Total

101

13.093




The regression model is said to be suitable and acceptable for the analysis when the obtained F-value is greater than the F-value shown on the tables based on the degrees of freedom involved and the desired degree of confidence. As shown in table 4.13, the analysis of variance obtained F-value of 8.043273 with 101 degrees of freedom and over 99% confidence. The F-value from the tables at 99% confidence with 101 degrees of freedom is 7.47. The model was therefore reliable and sufficient for the analysis.

Multiple Regression Coefficients

The results on the regression coefficients of the variables are as indicated in Table 4.12

Table 7: Coefficients of the Variables

Model

Unstandardized

Standardized

T

Sig.


Coefficients

Coefficients




B

Std. Error

Beta



(Constant)

.671

.288


.327

.024

Organization structure

.326

.112

.300

2.912

.005

Dependent Variable: succession planning of civil registration department.

This is an implication that the variables used in the model namely, Training, organization structure, performance appraisal and career path are significant in predicting the succession planning of civil registration departments. From the table indicates that organization structure and Succession planning are positive, moderate and statistically significantly related at 0.326 (t = 2.912) and a p significance level of 0.05. This implies that a 1 unit increase in the level of organization structure increases Succession planning of civil registration department by 0.326.

Collinearity Test

Consider table 8. The test on collinearity is as follows

Table 8: Collinearity Test


TOLERANCE

VIF(variance inflator factor)

Organization structure

0.667

1.499

As shown in Table 4.13 the results of the collinearity statistics as demonstrated by the Variance Inflated Factor (VIF) showed organization structure (VIF =1.499 did not have multicollinearity problems the VIF is less than 10. In other words, the influence of the named predictor variable on succession performance was not subject to other independent variable. The results of correlation analysis implied that when organization structure was enhanced the succession planning of civil registration department was likely to improve. On the other hand failure to properly implement its proper practice is likely to weaken the succession planning of civil registration department.

Conclusion

The study objective was to determine the influence of the organization structure on the implementation of succession planning in the civil registration departments in Kenya. Through the review, the exposed analysis implies succession planning is not very clear to employees if it applies to all top management positions or just key positions. Evidently, it is implied that job training has contributed to retention although it is not well implemented in all departments as is expected it is also realized Civil Registration Department not all the times considers talented employees for rewards. Additionally, they are not convinced that reputation of Civil Registration Department on succession planning determines if talented employees join an organization. The study findings were presented in form of percentages, frequency tables, charts and graphs. It was observed that 58% of the respondents felt their succession planning was operating under a sound organization structure. Results further indicated that the civil registration department having established overall organization structure and therefore had the highest mean of 4.3. Extension of organization structure being made on an arm’s length basis was not a key organization structure in the civil registration department. For an organization to remain competitive, they have to have loyal employees. An organization with strong employee succession practices has lots of benefit for an organization. Therefore this study concludes that succession planning is significantly affected by organization structure.

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