MHA 702 EXAM 3 QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Succession planning
-useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning
-succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders
Expected to retire over 5 to 10 years
Organizations without succession plans
Uneasiness is intensified and negatively affect performance
Leaving development of future leaders to chance
CEO is responsible for
Initiating succession planning
Organizations with succession plans
More likely to have smoother leadership transition
Board of directors is responsible for
Appointing a successor
,Succession planning should begin
4 years prior to CEO leaving
HR responsibility
Managing succession planning process
Succession planning saves organizations
-Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person
-key element of for-profit succession planning
Hiring outside of an organization
-requires 6-12 months before financial performance regains the level that existed prior
to replacement
5 principles to succession planning
-board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
-agreements made must be communicated to succeeding board leadership and must be
honored
-governing board has final say
A continuous process
-succession planning must be continuous
-successor should always be available
,-significant development assignments can be arranged to ensure appropriate
experiences are encountered
Feedback loops
Are critical in succession planning
Goals and timelines
-created and monitored
-important for transition
-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
Succession planning should begin early
-for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
Potential pitfalls
-connections to social network and psychological ties to organization that complicate
effort to change
-inappropriate or limited experience
CEO/ Management team damaged
, -only bringing in an entire new regime can sweep organization clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
Organizations May inventory potential employees
Often called assessing their inside bench strength
If no suitable candidates
-based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly
-Due to expense of maintaining 2 individuals with high salaries over time
CEO must be mature
-May feel threatened by trained successor standing in wings, poised to takeover at a
misstep at the whim of board of directors
Why organizations have not created succession plans
-require time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Organizations without plans
Complain of being swamped by more immediate and pressing issues
Leadership is
Critical for long term effectiveness of contemporary organizations
CEO and governing Boards
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Succession planning
-useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning
-succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders
Expected to retire over 5 to 10 years
Organizations without succession plans
Uneasiness is intensified and negatively affect performance
Leaving development of future leaders to chance
CEO is responsible for
Initiating succession planning
Organizations with succession plans
More likely to have smoother leadership transition
Board of directors is responsible for
Appointing a successor
,Succession planning should begin
4 years prior to CEO leaving
HR responsibility
Managing succession planning process
Succession planning saves organizations
-Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person
-key element of for-profit succession planning
Hiring outside of an organization
-requires 6-12 months before financial performance regains the level that existed prior
to replacement
5 principles to succession planning
-board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
-agreements made must be communicated to succeeding board leadership and must be
honored
-governing board has final say
A continuous process
-succession planning must be continuous
-successor should always be available
,-significant development assignments can be arranged to ensure appropriate
experiences are encountered
Feedback loops
Are critical in succession planning
Goals and timelines
-created and monitored
-important for transition
-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
Succession planning should begin early
-for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
Potential pitfalls
-connections to social network and psychological ties to organization that complicate
effort to change
-inappropriate or limited experience
CEO/ Management team damaged
, -only bringing in an entire new regime can sweep organization clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
Organizations May inventory potential employees
Often called assessing their inside bench strength
If no suitable candidates
-based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly
-Due to expense of maintaining 2 individuals with high salaries over time
CEO must be mature
-May feel threatened by trained successor standing in wings, poised to takeover at a
misstep at the whim of board of directors
Why organizations have not created succession plans
-require time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Organizations without plans
Complain of being swamped by more immediate and pressing issues
Leadership is
Critical for long term effectiveness of contemporary organizations
CEO and governing Boards
