1|Page
MHA 702 EXAM 1 EXAM LATEST 2024/2025
QUESTIONS AND CORRECT ANSWERS(100%
CORRECT VERIFIED ANSWERS)ALREADY
GRADED A+
Succession planning - .....ANSWER ...✔✔ -useful for
managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - .....ANSWER ...✔✔ -succession
plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - .....ANSWER ...✔✔
Expected to retire over 5 to 10 years
Organizations without succession plans - .....ANSWER
...✔✔ Uneasiness is intensified and negatively affect
performance
Leaving development of future leaders to chance
,2|Page
CEO is responsible for - .....ANSWER ...✔✔ Initiating
succession planning
Organizations with succession plans - .....ANSWER
...✔✔ More likely to have smoother leadership
transition
Board of directors is responsible for - .....ANSWER
...✔✔ Appointing a successor
Succession planning should begin - .....ANSWER ...✔✔
4 years prior to CEO leaving
HR responsibility - .....ANSWER ...✔✔ Managing
succession planning process
Succession planning saves organizations - .....ANSWER
...✔✔ -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is
promoted
,3|Page
Grooming an internal person - .....ANSWER ...✔✔ -
key element of for-profit succession planning
Hiring outside of an organization - .....ANSWER ...✔✔
-requires 6-12 months before financial performance
regains the level that existed prior to replacement
5 principles to succession planning - .....ANSWER
...✔✔ -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 - .....ANSWER ...✔✔ -succession
planning must be continuous
-successor should always be available
-significant development assignments can be arranged
to ensure appropriate experiences are encountered
Feedback loops - .....ANSWER ...✔✔ Are critical in
succession planning
, 4|Page
Goals and timelines - .....ANSWER ...✔✔ -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 - .....ANSWER
...✔✔ -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 - .....ANSWER ...✔✔ -connections to
social network and psychological ties to organization
that complicate effort to change
-inappropriate or limited experience
MHA 702 EXAM 1 EXAM LATEST 2024/2025
QUESTIONS AND CORRECT ANSWERS(100%
CORRECT VERIFIED ANSWERS)ALREADY
GRADED A+
Succession planning - .....ANSWER ...✔✔ -useful for
managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - .....ANSWER ...✔✔ -succession
plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - .....ANSWER ...✔✔
Expected to retire over 5 to 10 years
Organizations without succession plans - .....ANSWER
...✔✔ Uneasiness is intensified and negatively affect
performance
Leaving development of future leaders to chance
,2|Page
CEO is responsible for - .....ANSWER ...✔✔ Initiating
succession planning
Organizations with succession plans - .....ANSWER
...✔✔ More likely to have smoother leadership
transition
Board of directors is responsible for - .....ANSWER
...✔✔ Appointing a successor
Succession planning should begin - .....ANSWER ...✔✔
4 years prior to CEO leaving
HR responsibility - .....ANSWER ...✔✔ Managing
succession planning process
Succession planning saves organizations - .....ANSWER
...✔✔ -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is
promoted
,3|Page
Grooming an internal person - .....ANSWER ...✔✔ -
key element of for-profit succession planning
Hiring outside of an organization - .....ANSWER ...✔✔
-requires 6-12 months before financial performance
regains the level that existed prior to replacement
5 principles to succession planning - .....ANSWER
...✔✔ -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 - .....ANSWER ...✔✔ -succession
planning must be continuous
-successor should always be available
-significant development assignments can be arranged
to ensure appropriate experiences are encountered
Feedback loops - .....ANSWER ...✔✔ Are critical in
succession planning
, 4|Page
Goals and timelines - .....ANSWER ...✔✔ -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 - .....ANSWER
...✔✔ -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 - .....ANSWER ...✔✔ -connections to
social network and psychological ties to organization
that complicate effort to change
-inappropriate or limited experience
