Recruitment and Selection {HRM 433}

Topic:
Succession Planning
Submitted To:
Sir Muhammad Abdul Majid
Submitted By:
Syed Amad Wajid

11032120-156

Abdullah Asif

11032120-157

Ume Rubab

11032120-158

Anila Ishtiaq

11032120-159

Rehman Muzaffar
Section HRM
BBA 7th Semester
Date: 19-01-2015

11032120-127

Succession Planning for a CEO

1) How should Lone Star go about finding a successor to Ritter? Should
Bowers be recruited to be the next CEO?
The Lone Star Board needs to start by conducting a thorough job analysis for the CEO
position. This will enable them to understand the core duties and responsibilities that they
need the future CEO to perform as well as the critical KSAOs that this individual must
possess in order to be successful.
Once the board has conducted the job analysis of the CEO position, then it should
perform an in-depth scan of the company's current management to identify individuals
whose backgrounds and qualifications appear to match the requirements of the CEO
position. If the company has an existing skills inventory in place, this might be a good
source of this type of information. Past performance reviews of management would also
provide valuable information for identifying potential candidates.
Clearly, Bowers should be considered as a potential candidate for the CEO position, but
the current CEO should not be given the authority to name his own successor as his
personal favorite may not be appropriate given what the board is looking for in the new
CEO.

2) How should other internal candidates be identified and recruited?

Absolutely. As noted above, Bowers may be a strong candidate, but there may be other
individuals in the organization who are even more qualified for the CEO position. The
key is that the CEO position is obviously critical to the future success of the bank so the
board must conduct a thorough search to ensure that they hire the most qualified
individual for the job.
3) Does Lone Star need a succession plan for the CEO position? If so,

how would you advise the board in setting up such a plan?

Yes. Given the importance of the CEO position to the long-term success of the bank and
the fact that many companies are experiencing major challenges in finding appropriate
replacements for outgoing CEOs, Lone Star Bank must develop a succession plan for
identifying and developing an appropriate replacement for the CEO, no matter who the
CEO is at a given time or how well he/she might be performing.
The board could develop a succession plan by consulting with the bank's Vice-President
of Human Resources regarding the best way to proceed. The VP of HR will have
expertise in the area of succession planning and should be able to offer some suggestions
to the board. The keys in developing such a plan will be to understand what type of
person is needed for the CEO position (now and in the future), identifying individuals

who show potential to eventually assume the position, and providing training and
development, coaching, and mentoring opportunities for these high potential individuals
to ensure that possess the required KSAOs for the CEO job.

4) Should Lone Star have a succession plan in place for other

individuals at the bank? If so, why and for whom?
Given the amount of time and resources needed to develop and implement an effective
succession plan, it may not be feasible to have a succession plan in place for all of the
jobs/employees in the bank. However, it would be very important, from a strategic
perspective, to develop succession plans for key jobs and individuals in the organization
as the KSAOs associated with these jobs may be very specialized and difficult to find or
develop on a short-term basis in the event that a job incumbent resigns or is terminated.

Succession Planning:
Succession planning is a process for identifying and developing internal people with the potential
to fill key business leadership positions in the company. Succession planning increases the
availability of experienced and capable employees that are prepared to assume these roles as they
become available.
Success Factors:
There are several factors typically found in successful succession planning initiatives. For
example:
Senior leaders are personally involved.
Senior leaders hold themselves accountable for growing leaders.
Employees are committed to their own self-development.
Success is based on a business case for long-term needs.
Succession is linked to strategic planning and investment in the future.
Workforce data and analysis inform the process.
Leadership competencies are identified and used for selection and development.
A pool of talent is identified and developed early for long-term needs.