Abstract
The research reflects
the evaluation of succession planning on the employee performance in Tus
airways. The air industry has been seen to provide economic benefits in Cyprus
and after the closure of Cyprus Airways, it has become important for Tus
airways to work efficiently. Organizational productivity and efficiency rely on
the employee productivity and presently a good succession planning has been
considered as the prominent tool to enhance employee productivity. The study
reflects the factors of succession planning including career management,
performance appraisals, and talent management which might create the healthy
effect on strengthening the employee performance level. The study has been
conducted under the mixed approach of qualitative and quantitative analysis
hence both proved that there is a highly significant impact of all the
interrelated factors of succession planning on employee performance level.
Introduction
Background
With
the increase in the globalization, the competition in the business industry has
been increasing rapidly however organizations must have to prepare their
employees to face the continuous challenges of this contemporary world. For the
stable and high-quality management, there must be the implementation of the
high level of management activities (Farley, 2005). Succession planning could
be defined as the key indicator to enhance the organizational performance as it
helps the company to make the proper risk assessment, eradicating and
minimizing risk factor by the implementation of retention strategies and
assures the willingness of the success factors in contributing towards making
the potential employees productive (Robb, 2006). The implementation of succession
planning could be done in accordance with the organizational needs to
accomplish the short-term and long-term goals of the organization (Pynes,
2004). Every organization has been implementing the succession planning factor
by emphasizing the implication of leadership. The management and leaders in the
company play a vital role in managing the organizational aims and objectives
and to make a proper succession planning to retain the employees and to
encourage their productivity level (Giambatisa et al., 2005). In addition,
succession planning is among the process by which the organization provides a
range of opportunities to their employees and implement the high level of
employee satisfaction (Hirsh, 2000). In order to encourage the employees for
long-term and to retain them, there are several strategies for succession
planning. The factors which promote the succession planning are providing the
employees with the healthy opportunities of career management, encouraging
their productivity through performance appraisals and managing their talent by
providing proper training and development (Fleischmann, 2000).
Throughout
the process of succession planning, the management must be very collaborative
as they subsequently help the employees to gain capabilities, skills, and
knowledge which prepares them to become active in accomplishing the challenging
roles (Johnson and Brown, 2004). By the implementation of succession planning,
the management does not only gain the organizational productivity but also accomplish
in providing job security to the employees. The implication of this strategy
gets successful if the management would invest the healthy amount of time and
attention in the employees (Ostrowski, 1968). The effective and proper
implementation of succession planning could be done by identifying and
understanding the short-term and long-term goals of the organization (Hall,
1986). Moreover, the management must work on identifying the developmental
needs of the employees as it will help the management to place proper career
paths and performance appraisals for the employees. The placement of
performance appraisals must not be done in a biased manner as this could
discourage the employee performance level (Hall, 1986). As per the arguments of
several researchers, the focus on employee retention is a key factor for the
effective succession planning process as it would be able to satisfy the
employee to remain productive for long-term. Succession planning helps to make
a proper alignment of the organization goals, objectives, mission a vision and
increase the probability of attaining the aim. Human resource management has
been considered to be the backbone of proper succession planning implementation
as it helps to align the planning with the sustainable corporate culture and
business environment (Ostrowski, 1968).
The
healthy amount of investment in the factors of succession planning is one of
the productive strategic decision of any organization. Henceforward, the
implementation of succession planning has become the need of every organization
to remain competitive in the business world. By focusing on the retention of
employees could improve the equity and efficiency of staff and could help the
company to lessen down the turnover rate (Milkovich and Boundreau, 1988). The
succession planning must start with the internal staffing which would help the
employees to gain right and meaningful opportunity (Bottomley, 1983). Moreover,
the assurance of proper succession planning could help to retain the employees
and would ensure the higher productivity level in the organization (Nzuve,
2008).
Definition
of Succession Planning
The definitions of succession planning reflect that it is one of the thoughtful effort and strategy that every organization practices in order to make sure the continuity of leadership and the level of encouragement in each of the employee (Augestine and Kanemoto, 2009). The primary objective of introducing succession planning is to match the needs of employees and to encourage them through accomplishing the needs. The promotion of succession planning would help the companies to attain continuous improvement (Augestine and Kanemoto, 2009). Succession planning also involves in integrating the critical success factors within the companies and also supports the enhancement in the services and processes thus it also helps to ensure the effectiveness in the operations (Currie, 2010). The process of succession planning helps to extract the hidden pool of talent from the employees and also improves the organizational performance. With respect to the evaluation of all the viewpoints regarding succession planning, it is crystal clear that there are three principles on which succession planning relies. Those include the careful effort, continuity in leadership, talent hunting and constant improvement (Swan and Moye, 2009).
Succession
Planning Process
Succession
planning has been among the most prominent factors that need a notable
consideration thus it is a fact that organization must always give high preference
to the factor of succession planning during the organizational planning (Kesner
and Sebora, 1994). Effectiveness in the succession planning could help to make
the operations efficient. Either it is about family business or it is about
other organization there must be no biases in major succession planning thus
the companies must choose the participant's succession planning under their
talent and skills. In order to maintain the cohesiveness and management in the
organization, the companies must always focus on developing the planning and
processes and must also focus on the restructuring process of the company. The
leaders in the organizations must be very effective that it must focus on
transferring the leadership qualities in the employees to make their work
productive. The providence of valid structure in the organization could help
the companies to flourish in different mechanisms. By the placement of the
succession planning process in a detailed manner could help the company to set
up the framework that could be able to gain a competitive advantage. The
identification of succession planning includes the number of elements that
could actually be made the company operations successful (Christensen, 1953).
There
are several other researches that have proposed different elements that must be
included in the plan. The very initial step of the company is to identify the
successor's pool, labeling the successors, supporting the employees and become
the good management leader. Christensen has proposed an effective framework
that could help the employees to understand the importance of succession
planning and that the element of succession planning could bring fruitful
achievement in their career. By giving prominent consideration to the
successors might help the firms to highlight the process in a more
comprehensive and detailed manner (Vancil, 1987). With respect to the
succession planning process, the most prominent factor is proper communication
as it plays an important role to legitimize the successor. The role of the
current leader in the organization is to commit the employees that he will help
the employees to grow their career through proper and sustainable succession
planning. The employees must be given flexibility and an open environment to
speak up with their innovative ideas so that they might be chosen as the
successor without any biasness. If the employees have to face a power struggle
in the company then it could become the biggest dispute for them that will
become an obstruction in their work. This type of conflicts are not easy to
resolve therefore the companies must choose the factor of succession planning
rather than minimizing the level of conflict (Christensen, 1953). However, the
entire organization must be aware of the importance of the role of
communication in the whole process of succession planning to make the processes
and activities firm in its own way. The framework that has been introduced by
Christensen is sufficient enough to stabilize the organizational structure and
actions. It also provides successful solutions and processes for the businesses
which wanted to stabilize and continue their success (Christensen, 1953).
Reasons
for Succession Planning
There
are about 59% of organizations who have been the target of failure due to the
major problem of the shortages of skill and development. The primary reason
behind this is the lack of idea of succession planning that must be anticipated
by the human resource management through different techniques and strategies (William
and Annon, 2006). As per the suggestions in different research papers the
management of succession planning has been considered as the prominent critical
success factor that must be surely executed in the companies to retain their
employees and to gain competitive advantage. The succession planning programme
must be executed mannerly to enhance the productivity, effectiveness, and
competitiveness in the organization (William and Annon, 2006). Another main
reason that promotes succession planning is the future leader's development
that must be ensured in every organization of every relatable size. The
leadership development challenges have been always a critical issue in this
contemporary world, therefore, the organizations must always look for potential
and dynamic leader’s that could be able to manage the organizational resource
development along with succession planning process (Groves, 2006). In order to develop the pipeline of the
leadership, it is important for the companies to make sustainable succession
and retaining policies and procedures. In the process of formulation succession
planning policies and procedures, the companies must follow five essential
rules. The rules includes the leadership capability development who would be
able to attain the objectives of the company, Identification of good
restructuring of the entire company, Giving space to the employees and making
their performance transparent to everyone, measurement of the regular progress
and identification of the needs and demands that are becoming the hurdle
between the employee satisfaction and their level of productivity and
providence of high flexibility to the employees so that they might be confident
in sharing their problems and ideas (Conger et al., 2013).
Company’s
Introduction: TUS airways
TUS
airlines have been among the known and famous airway in Cyprus which is located
in Larnaca, Cyprus thus the operations rely on the Larnace international
airport. The airline has been formulated in the year 2015 and started to fly in
the year in the year 2016. Presently in the year 2018, the airways have been
flying their way in Greece, Italy, and Israel (TUS Airways, 2018). 
The
head pilot of the Cyprus Airways Efthymios Liastos formulated Tus Airways in
the year 2015 thus the main investors who made a healthy investment to form
this airline includes Europe and the United States. Moreover, after the
dissolution of Cyprus Airways, Tus airways was the one which was founded and
showed an amazing effort to maintain the airline industry in Cyprus. The Tus
airline had made great efforts in making the operations efficient and in increasing
the capacity of the route continuously. The expansion in the services of Tu's
airways has provided them to fly each day in the clouds of success (TUS
airways, 2018).
Problem
Statement
In
this contemporary world, every organization has been working hard to attain
competitive advantage however, the focal point of the organization is to manage
the operations and activities in an effective. Every organization has short and
long-term goals while in order to attain those goals the companies must be focused
on managing their operations in an effective manner. The issue related to the
management had become the reason of destruction for many known large firms.
Instead
of just focusing on money-generating strategies the companies must always be
focused to attempt the effective management tactics especially succession
planning. The focus on the implementation of the succession planning strategies
might provide the organization a constantly effective management that would
help the company to remain stable in this competitive industry (Arthur, 1994;
Becker and Gerhart, 1996).
Research
aim
The
aim of this research is to explore the significance of succession planning on
enhancing the employee performance level in the organizations.
Research
Objectives
Following
are the main objective of this study
·
To explore the impact
of succession planning on employee performance in the Tus airways
Some
other objectives included in the study are:
·
To find out the effect
of career management on enhancing employee performance
·
To evaluate the impact
of performance appraisals in encouraging employee performance
·
To discover the effect
of talent management in upgrading employee performance in Tus airways
Research
Questions
The
main research question of this study is
·
Does the implementation
of succession planning affect the employee performance level in Tus airways
The
sub-research questions for this study are
·
Does the implication
of career management helps to enhance the employee performance level in Tus
airways
·
Does the up gradation
in the performance appraisals supports to encourage employee performance level in
Tus airways
·
Does the talent
management supports to upgrade employee performance level in the organization
in Tus airways
Significance
The
main area of this research focuses on the succession planning activities on
enhancing the employee performance level. The research helps the organizations
to encourage the activities and planning that influences and retain the
employees to work efficiently. Moreover, the study involves several benefits
for the academic and professional level as it adds knowledge and will enhance
their actions related to management. As management has been one of the
important phenomena, this research provides a clear insight into the planning
of effective succession planning programmes in the organization.
Literature Review
Career
Management
The
idea of career development is broadly defined as an order of work experience
and practice that is focused on the organizational and personal goals under the
control of others (Orpen, 1994). The unique structures of this
conceptualization are that the workers/employees have a perspective, which is
long-term and expand beyond employee performance and current satisfaction that
emphasis on the aspects if career not on the subjective feature as well as on
the objective features. The structures relatively observe the effectiveness of
career as the attainment of rank positions or social sanction. The growth of
career refers to an opportunity for worker/employee to gain career development
experience, enhanced possibilities, be promoted, remuneration, and professional
ability and enhanced responsibilities. (Weng, McElroy, Morrow, & Liu,
2010).
The
career growth perception is the opportunity that workers/employees experience
about their progress in an organization and career development. This is shown
through four aspects, namely, development of professional abilities, the growth
of remuneration, career development goals, and the speed of promotion. (Weng et
al., 2010). Hence, the aspect of career development is the development of an
individual's status and rank within an organization in a defined path of
career. To accomplish that objective, the individual requires improving work
performance. Career development is fundamentally passable expectations, values,
and objectives of workers/employees related to the advancement of their career,
joint with the requirements and objectives of the organization in order to make
an effective and efficient working association between them (Orpen, 1994).
Career as a frame of the order of work
practice intends to achieve parallel both organizational and personal
objectives and goals. Eisenberger, Rhoades, and Cameron (1999) reveal that
promotions and the opportunities of career are of a positive influence on the
support of the organization. Likewise, Rhoades and Eisenberger (2002), Levinson
(1965) articulate the degree to which organizations measure worker or employee
assistance and keep concerns and care about their well-being and welfare by
giving satisfactory opportunity, suitable ventures and personal requirements
severely directs to the practice of HRM (human resource management) and
eventually effects on the worker/employee trust. Therefore, the impact of the
development of a career in the performance of an employee requires the support
of organization Chiang, C. F., & Hsieh, T. S. (2012). Working associations
of high-quality run by career development direct an optimistic approach to the
commitment of the organization. The dedication of commitment here is resolute
by the achievement of the organization in applying career development in
employee performance for improvement. Each of normative and effective
commitments and pledges has its own features and objectives, though both are
established as an outcome of the practices and performances of HRM (human
resources management).
Performance
Appraisals
Performance
appraisals have been considered as the motivation technique which has been used
to enhance the strength of an individual and to make the employee determined
towards their duty (Ahmad and Bujang, 2013). The performance appraisal has been
given on the basis of the interpretation and measurement of the input given by
the employees thus it improves the input level of the employees (Jan et al,
2014). In order to assess the performance level, the actions of the employees
must be measured and presented in front of the managers at the end of every
month (Mohammad et al., 2012). The performance appraisal system is one of the
methods to increase the commitment and motivation and builds the capacity level
of the employee performance. Motivation has become one of the collaborative
technologies that help to attain certain goals and objectives of the company
(Iskandar et al., 2013). Performance management helps to encourage and guide
the employee to broaden their activities to gain the competitive advantage in
the organization. Presently, organizations have been implementing the
performance management systems that help to evaluate the performance level
visibly (Neelam et al, 2013). By evaluating the performance of the employees
through performance appraisal systems the management could do effective
motivation of the employees (Shahzadi et al., 2014)
The
performance appraisals are among the most influential motivational technique
that helps the organization to encourage the employees in an efficient manner
and enhance the productivity level of the employees (Anderson and Pederson,
2012). The motivation of performance appraisals helps to enhance and explore
the hidden talent of the employees and to directly inspire the employees
through the providence of financial and non-financial rewards. The researchers
suggest that there is a positive association between the performance appraisals
in upgrading employee performance level (Ubeda and Santos, 2013). Motivation
has been among the notable factor to influence the actions of the organization
however, it has an influential effect in inspiring the performance of employees
(Bahrija and Mirela, 2013). The area of motivation is totally covered with the
influence of performance appraisals, however, according to several research
papers, the appraisals increase the self-confidence among the employees which
directly influences the employee productivity level (Muhammad, 2014).
Talent
Management
Talent
management has been considered among the most notable activity of HR management
in the organization however, it helps the employee to motivate towards personal
learning and organizational learning (Sheehan, 2012). From the research of
Stiles and Kulvisaechana (2003), they identified that for achieving the
competitive advantage in any firm, it is effective to utilize the contemporary
approaches because of the increasing demand of modernisation in the diverse
working environment. Consequently, some strategies include the improvement in
economies of scale, advancement in technological resources, adoption
sustainability to maintain natural environment, and create high awareness for
easy implication. Further, competitive advantage is the unique characteristic
of a firm that will not be imitated, it finds rarely, and adopted from the
valuable source. As per the study of Bersin (2009), talent-management is the
mainstream to deal with the employee commitment and make them attentive towards
their responsibilities for being highly competitive in a challenging situation.
From the perspective of Stadler (2011), the crucial role of TM identified in
defining future skills of employees, motivating them, retaining them with
improved skills, and supporting them with full career planning, Developing
talent pools of possible successors for every critical role and motivating
employees due to an involvement of the organization in their career growth
Succession
Planning and Key Leaders
There
are key leaders who must be given prominent and notable emphasis like the CEO
or the senior management. However, the succession planning for the key leaders
must be carried out in both primary and secondary grounds. In order to make the
proper strategic plan regarding the succession planning, CEO must make the
decision by making proper research internally and externally which could make a
rapid impact and sudden change on the organizational performance
(Hutzshcenreuter et al., 2012). Succession planning has several advantages and
disadvantages as the significant change in the organization is not mandatory to
be adaptable for every employee. The assigned roles for the proper succession
planning must be justified and prudent so that it might affect the organization
positively. This brings in the new perspective for the organization (Kesner and
Dalton, 1994). Outside succession planning might result in the high amount of
turnover rate of other employees than the inside succession however, the
manager and executives might feel little demoralized and discouraged for
avoiding for the outsider (Helmich and Brown, 1972). It might cause the
employees to lose the job loyalty and they might resign for the particular job
(Friedman and Saul, 1991). Validation and changes in the authority and
management could also lead the new leaders in pressure, therefore, the
restructuring process regarding the succession planning must rely on the
productive decision making in a systematic manner (Weisbach, 1995). Moreover,
it has been noted that the companies could not digest several changes at once
and it needs to be varied slowly. If the succession planning interrelates with
the idea of appointing the CEO on external basis then it could bring the
healthy amount of restructuring and change which is not healthy for the
organization until it has been implemented in a positive manner
(Hutzschenreuter et al., 2012). As per the researches, the most beneficial
technique for the companies to practice succession planning is the proximity
and selection of internal candidates as it could result as the best choice of
organization and would be less risky (Conger and Fulmer, 2003). Internal
consideration in the succession plan framework would be considered as best and
satisfactory strategic direction to be chosen by every organization. The
formation and implementation of the strategic plan could be useful for the
short term and long term considerations and could promote real change as well
(Bigley and Wiersema, 2002). Moreover, the succession planning must not be done
under biased behavior as it could benefit more to the closer relationship
rather than the other employees (Ibarra, 2005; Luna, 2012).
Succession
Planning and Knowledge Transfer
Succession
planning has been considered as the most useful tool and technique that could
bring positive change in the organizational culture and productivity. It could
help the companies to manage the transfer of knowledge within the entire
organization. Presently, the attainment of knowledge has been considered as the
primary source of gaining competitive advantage (Pfeffer, 1998). Moreover, the
use of succession planning could also help in generating the competitive
advantage and efficiency in the operations (Peet, 2012). There are several
research projects that have examined several creative and innovative manners to
access and transfer the knowledge through the different phase. In the private
sector, the loss of knowledge could bring into the potential loss (Peet, 2012).
As suggested in the known research studies, the companies must make flexible
actions regarding the arrangements to manage the knowledge networks and
integration. The integration of the network has been considered as alumni
networks of corporations (Koc-Menard, 2009). Present studies have clearly
evaluated the fact and value for the succession planning and providence of
training and development to the senior management as it makes the employees
loyal for about the next 5 years. The main focus of the training and
development must not only rely on providing hard skills and competencies to the
employees but it must also help in generating the soft skills and competencies like
communication strategies. In the succession planning process, the senior
management could be trained through learning, mentoring and running to make
themselves a potential successor. Moreover, this could bring the high level of
confidence and motivation in that senior management (Appelbaum et al., 2012b). The
investigation on the proper succession planning interrelates with the
creativity and innovations through the generative knowledge interview that
could also help in gaining knowledge. The process of knowledge interview
process might help the senior leaders to gain an extensive amount of knowledge
through different processes of storytelling among the senior leaders and the
successors. In this manner, the management would be able to identify the core
skills and competencies in making an effective succession planning process. By
conducting the processes like GKI could help the leaders to make an ongoing
progress and helps the organizations to gain benefits and better results that
are required for the success of the organization (Peet, 2012).
Succession
Planning and Organization Size
If
the organization is broader than there is a must complexity in the organization
however the role of an effective succession planning could help out in
resolving the complexities. There are organizations which have to understand
the importance of the succession planning description thus they have been
enjoying the healthy amount of income and an influencing leadership quality in
the employees (Naveen, 2006). The complexities in the organization could be
enabled with respect to the competition in the job and the cost which is
directly associated with the successor. In order to meet the complex criteria,
it is important to work on an effective succession plan (Conger and Fulmer,
2003). To make an effective succession planning there must be an indulgence of
the high-quality HR professionals and the entire team which could easily
execute the plan. Each and every employee must be fully aware of the policies
and procedures regarding the succession planning in order to make the effect of
the plan more potential. In contrary to this, the role of an effective
succession plan helps in the encouragement of the managers and other
upper-level management by promoting their personality. Most of the
multinational companies with complex infrastructure understand the importance
of the succession planning. Through this, the managers also get a real exposure
to the multinational business opportunities and its operations. Succession
planning includes the high development of skills through mentoring, job
rotation and changing the business environment (Conger and Fulmer, 2003). Succession
planning is also equally important for the small companies and enterprises
either it is a private company or a family owned business it provides high
mutual support to the organizations with respect to every sector.
Employees
have been considered as the major asset of the company however, the loss of a
single employee could bring into several obstructions to attain the goal of
profitable business and could also make an adverse on the company operations.
Smaller firms are mostly less competitive than the larger companies and possess
lack of flexible environment but the use of succession planning process could
make their competitive benefits equal and could open up various doors of
opportunities (O’Gorman, 2006). Moreover, there was an era when the profit
margins were quite high and that era provides an idea of the succession
planning implementation in the organizations. There are types of succession
planning, however, smaller firms have different types of succession plan
regarding the skills and multinational companies have other plans (Burke,
2011).
In
the smaller organizations, it is difficult to make the succession plan as it is
complicated to understand the change in the processes (Bjomberg and Nicholson,
2012). In the small organizations, the identification of the successors is
earlier than in the large organization and it is also easy to define the roles
and responsibilities in the smaller companies. Although the process of
succession planning might take several years but will give long-term benefit
thus it is mandatory to implement the process under the watchful eyes and
strict managerial department (Chrisman et al., 1998).
Elements
of Effective Succession Plans
There
is a big difference between the implementation of succession planning and the
effective succession planning, however, it is important to understand the
differences. Moreover, there are several barriers and obstruction that are
coming in between the implementation of succession planning. Some of the
barriers include the culture of the organization, low attributed priority and
focus from the top management and limited resource allocation that could be
used for the implementation of a succession plan, the sufficient number of
awards and motivating strategy and lack of understanding the importance and
benefits interrelated with succession planning. Due to the lack of awareness
about the importance of succession planning the organizations have not been
focusing on making the framework and planning. By focusing on the door of
opportunities, planning, and implications, the point of reference and the
intensification of competition and leadership organizations might help the
organization to take corrective actions (NAPA, 1997). The complications and
complexity in the organization and the political atmosphere in the company
could create obstructions in the implementation of effective succession
planning. In a nutshell, by giving a notable prominence to the barriers the
companies could be able to make the succession planning effective (Leland et
al., 2012). There is a number of research papers which have outlined the
important aspects interrelated with the plan of effective succession, however,
by making a proper framework for the succession planning the companies could
take proactive steps and could design the strategies to make pre-steps for
maintaining the health of the organization (Rothwell, 2010).
If
the companies want to make their succession planning effective then they should
take an earlier step rather than taking steps later. The formation of proper
succession planning framework needs sufficient amount of time and the
involvement of the entire organization. Through this, the management would be
able to restructure the entire managerial system by critically outlining the
roles and responsibilities of every employee. The idea of succession planning
includes the strategic restructuring that would give an idea of the future to
the employees and would assure them about the importance of their roles and
responsibilities. The future roles must be set in accordance with the
competencies and standards of the employees in order to make the right decision
(Hargreaves and Fink, 2006). Moreover, the effective succession planning could
help in examining the development of managerial and leadership skills in the
employees of all the levels. Moreover, this will also help in developing and
strengthening the commitment level of all the employees at all level as the
effective succession planning will give them a reason to work harder. The
mechanism of the organizations including the selection and recruitment,
retention and development must be incorporated or integrated with the idea of
succession planning (Reid and Gilmour, 2009). More the succession planning
would be well-designed, more there would be chances of less complexity and
continuity in the progress of the organization. An uneven implementation of the
succession planning could bring various challenges in the organization that
might be hard to deal (Charan, 2008).
Furthermore,
it is mandatory to design the succession plan in an accurate manner so that it
might cooperate with the needs of every individual in the organization.
Specifically, to make the proper succession plan companies must first analyze
the size of the company and the desired growth of the firm in the future
(Zepeda et al., 2012). The plan must not rely on the knowledge dissemination
but it must be focused to be effective. The organization having large size
along with higher growth rate and expansion might work harder in the succession
planning in order to make the desired expansion and growth. The assumption of
the future assigned roles must be identified in accordance with the skills,
competencies, and willingness of the employee so that the specific roles might
be able to obtain the desired success. The private organizations are much more
concerned with the planning of succession planning, especially for the top
management to keep the employees motivated in comparison with the public
limited organizations. Some of the organizations use the strategy of promotion
to retain the talent of the employees in a systematic manner (Pissari et al.,
2010; Reilly, 2008).
As
per the past literature review of the 90s the basic importance of succession
planning has been discussed deeply to let the organizations take healthy steps.
Moreover, there are several important components related to succession planning
that has been playing a major role in the amalgamation of the management
systems in the companies. The most prominent elements that have been considered
to imprint a notable impact includes 10 factors which are transparency in the
organizational processes, accomplishment of organizational commitment as per
expectations, proper evaluation of organizational needs knowledge generation,
formation of abilities and skills, prominence of talent management, process of
integration in the entire organization, development of future or strategic
planning, feedback of individuals, weekly accountability etc. (Conger, 2004;
Kesler, 2002; Leibman et al., 1996 and Rothwell, 2005). The most critical
factor that is important in the succession planning and managerial processes is
the evaluation of key positions in the entire organization in order to know
that whether the person fits with the job in accordance to his or her skills
and abilities or not (Fulmer and Conger, 2004; Rothwell, 2005). There are some
researchers who have identified the strategies and tactics, which might help
the management to evaluate the key positions. According to Rothwell, there are
six important strategies that might be helpful in the identification of the key
positions. The six basic strategies include charting the structure of an
organization, meetings, and discussion with the senior management, proper
formation of vacancies as per previous experiences, opening opportunities for
the employee, clearing a communication panel to trace the pathways. The
implementation of the combination of the strategies could help in approaching
the aims and objectives of the company.
Transfer
of knowledge through succession planning
Transfer
of knowledge is among the basic and important dimension of succession planning,
however, organizational knowledge has been among the shared knowledge that is
useful in the context of the organization and strengthens the creativity by
fostering high competitive advantage. Moreover, with respect to the true belief
of some of the researchers knowledge plays an important role in gaining
competitive advantage however, by gaining the previous knowledge the management
could take corrective actions in making strategies and in implicating the
strategies into action without forecasting the risk level (Nonaka, von krogh, and
Voelpel, 2006). Moreover, by evaluating the knowledge related to previous
actions taken organizations could increase the value of their strategy (Hatch,
2009). Gaining organizational knowledge is about sharing expertise,
competencies, and ideas that might help in the integration of strategies and
objectives and would be able to reflect the future of the company. Knowledge of
organization consists of the evaluation of assets and employees and comprises
explicit knowledge, tactic knowledge, individual knowledge and organizational
knowledge. Tactic knowledge has been considered as the knowledge about an
individual that is sometimes difficult to express in the entire organization. The
tactic knowledge has been considered as codified and intangible information
that is difficult to express. Explicit knowledge is the stored and codified
knowledge that might not take much time and could be easily communicated. Some
of the common interrelated forms regarding explicit knowledge include
documentation, operations, and procedures. Proper formation and development of
the procedures could help in converting the tactic knowledge into explicit
knowledge. Another form of organizational knowledge is group knowledge that
helps to define the knowledge of multiple persons interrelated with the
organization (Hatch, 2009). Group knowledge mostly comprises of the practices
that could not share the knowledge externally except for the interrelated
functions. The dissemination of the group knowledge could be done through
social networks that could help in transforming the tactics into explicit
knowledge. Another important knowledge type is an extra organizational
knowledge that could be expressed beyond the boundaries of an organization. It
helps in generating the knowledge between two organizations, which supports in
increasing the value of succession planning and shares some more innovative and
smart ideas that are useful for the progression of the company.
Issues
in Succession Planning
Succession
planning could be done in two systematic manners including the use of internal
talent or by capturing external resources or talent. However, the internal assets
include exploring the hidden talent of the employees and exploring external
resources refers to hunting for the talent and management. Both the routes are
equally important thus no choice would be considered as right or wrong. The
implementation of succession planning could include in choosing any of the
right route suitable in accordance with the organizational needs. Talent must
be purchased from the labor market by seeking it at right places, however; it
has its own advantages and disadvantages. The talent must be the hunt in
accordance with the variations in the market conditions, demands of the target
market and acquiring the fresh perspectives and ideas etc.
Implementation
of succession planning has been considered as expensive as it needs to
intensify several resources and generation of talent in the company. Moreover,
for the proper succession planning the companies must have to build the
internal pool of talent that would need several seminars, training and
development sessions. If the company has been implementing the idea of internal
succession planning than the expense of the company could decrease because the
expenses interrelated with the recruitment and selection, career mobility will
not occur. Although external succession planning could help in finding out the
bunch of opportunities, knowledge, competencies, and energy by making the
hidden talent undiscovered. The rate of risk and failure would be lower if the
company will go for the implementation of internal succession planning because
the employees would already know the rules, regulations, and compliance of the
organization. For the proper succession planning internally, companies must
move forward with the job rotation strategy and mentoring or training
strategies as it will develop confidence in the staff of the organization
(Seymour, 2008).
If
the company does not prepare for the strategic implementation than it means
that the company has been preparing to gain higher risk and to fail. If the
present succession planning of the company would be better and resilient than
the future of the organization might become stable. This is the reason that a
company must always acquire proper succession planning to ensure the stable
future (Seymour, 2008). The next generation plans must be prepared with respect
to high quality and could strengthen the businesses to reach new heights. There
must be competency and consistency in the management that could be created
through proper negotiation. The good succession planning could increase the
financial value of the company as it might increase the sustainability and viability
of the company (Seymour, 2008). Companies must focus on the diminishing the
skills gap through the providence of training and development, which might help
the companies to grow at longer term (Galagan, 2010). The proof declares that
the organization always experiences the skills gap by changing the conditions
of business and environment (Galagan, 2010). The use of succession planning
could help in decreasing the skills and competency gaps within organizations
and helps in identifying the recruitment and selection strategies (Galagan,
2010). By making proper planning and analysis the companies might implicate
healthy succession planning which might include a large amount of expertise.
Companies must make a life cycle of succession planning that must be made in
accordance with the variables in the organization. Hence, succession planning
has been considered as the assurance of leadership and provides high
competition for the employees and the managers (Hewitt, 2009; Richetermeyer,
2011).
Methodology
The
methodology part of this study defines the tools and techniques that have been
followed to evaluate the findings and results and to conclude the entire
result. Generally, the study could be carried out through primary or secondary
data or both hence the area of the research decides that which technique must
be used. Moreover, as the topic relies on the impact of succession planning the
analysis through both primary and secondary data would be useful. Methodology
part refers to explain the philosophy, approaches, strategy, choices, and time
horizon and data collection techniques. Moreover, the study has been always
giving a prominent consideration to the conceptual framework and ethical
consideration that ensures the validity and reliability of the study. The
conceptual framework helps at explaining the relationship between the dependent
and independent variable while the ethical considerations help at explaining
the ethical grounds on which the research relies upon.
Research
Philosophy
Research
philosophy relies on the type of study conducted, however; the study could be
either qualitative or quantitative. According to the viewpoint of the
techniques, the researcher determines the philosophy in the study. The analysis
of the study decides the integration of philosophical viewpoint, which could
rely on primary data, secondary data or both. As the research relies on the
evaluation of succession planning on employee productivity the researcher has
been implementing both qualitative and quantitative data analysis. As per the
researches, the qualitative study follows interpretivism philosophy while
quantitative study follows positivism philosophy. Moreover, the use of both
analysis in the same study carries out through pragmatism philosophy hence with
respect to the pragmatism philosophy the researcher follows the use of both
primary and secondary data.
Research
Approach
As
the study relies on conducting the effect of succession planning on the
employee productivity the study must be appropriate and must be detailed.
Therefore the management has been following deductive research approach.
Research
Strategy
The
research has been conducted under both primary and secondary analysis and
therefore the researcher has used the strategy for both qualitative and
quantitative data. In order to analyze the primary data, the researcher has
been using the strategy of the survey through close-ended questionnaires under
convenient non-probability sampling technique. On the other hand, for the
secondary data analysis, the researcher uses the strategy of case study and
grounded theories to investigate the concern in a descriptive manner.
Research
Choice
The
researcher has been following mixed research choice because the analysis of the
study has been done under both qualitative and quantitative data.
Triangulation
The
use of triangulation approach helps in determining accuracy and consistency in
the data, however, due to the use of a mixed method choice the research could
be complex therefore the researcher has been applying a triangulation approach.
Time
Horizon
The
researcher has been following longitudinal time frame thus the reason behind
using the longitudinal time horizon is to conduct a detailed survey under the
specific target audience. This might help the researcher to make the study
clear and accurate.
Data
Collection methods
Data
collection techniques and methods are used to gather the data in a systematic
manner, however; the data collection must be done properly to get the expected
results. The study has been following both primary and secondary data,
therefore, the data collection relies on both the strategies. The data
collection for the secondary analysis relies on the evaluation of past research
papers, articles that are interrelated with the impact of succession planning
on the employee performance. Moreover, for the data collection of primary data
the researcher has been using a close-ended questionnaire consisting of 10
questions related to the variables. While the data collection has been done by
the employees of Tus airways. Moreover, the researcher has been using non
probability convenient sampling method in order to get an easy proximity to the
respondents.
For
the data analysis, the researcher has been using the technique for both
qualitative and quantitative data. However, the data analysis of qualitative
data has been done by evaluating the past research papers and studies. On the
other hand, the analysis of quantitative data includes the use of SPSS
software. The researcher has done this by encoding and decoding the data and by
computing the variables under various testing including regression analysis,
reliability and validity testing, correlation, cross tabulation etc.
Ethical
consideration
Ethical
consideration has been considered as the most prominent component to be
discussed in the research paper however, the researcher must make sure to
practice each of the activity under the ethical concerns. Through the proper
implementation of the ethical consideration in the research, the researcher
might consider the research as reliable and increases the honesty level of each
of the statement written on it. For the formulation of the proper results and
analysis to ensure the aim of the study, the researcher must have to take
permission of each of the respondent. For this, the researcher has to make the
respondents aware of the aims and objective of the research paper so that they
might respond in accordance with it. Furthermore, by ensuring the anonymity and
confidentiality the researcher might ensure the notable prominence of ethical
consideration in the entire paper. Also, the researcher must make sure to cite
the references in a proper manner.
The
study relies on evaluating the effect of succession planning on employee
performance, however, to ensure the effective results the researcher has
justified each of the literature statement properly. In order to clarify the
concept of succession planning, the researcher has covered all the interrelated
factors and variables. Those factors include career management, performance
appraisals, and talent management. The respondents have to respond to each of
them, however, by considering ethics the researcher could satisfy the respondents
by giving them a confidence of safety and anonymity. The protection of the data
taken from the respondents and the past literature paper has been considered as
important.
The
main concern of implicating ethical consideration is to enhance and strengthen
the honesty level and integrity level of the research paper. The aim of his
research is to open up the doors of opportunities for the employees concerning
their future. The idea of succession planning is totally concerned with the
employees as it helps the management to explore the hidden opportunities of the
employees. Moreover, it helps in strengthening the level of job loyalty. The
researcher has made sure 0% deception level in the entire study by referencing
and citing the statements properly. In a nutshell, this study has been focusing
on mixed research methods and has been conducting the study on the basis of
primary and secondary data. The researcher has been working on pragmatism
philosophy along with a deductive approach and longitudinal time frame and has
worked under ethical concerns.
Limitations
The
primary aim and objective of this study are to assess the effect of succession
planning and its interrelated factors on the employee performance in the
organization. However, the most notable factors that have been highlighted in
this research are career management, performance appraisals, and talent
management which directly affects the future succession planning of the
employees. Although there are more factors that are interrelated with the study
but due to time limitation the researcher could not cover all the attributes so
far. Another foremost limitation is the hidden information of the company which
is hard to reach therefore the researcher could not be able to realize the
practices in Tus airways related to succession planning.
Conceptual
Framework
The
theoretical framework will provide a clear insight into understanding the
relationship between the dependent and independent variable. However, the
dependent variable is employee performance which has been influenced by the
independent variables career management, performance appraisals and talent
management
Hypothesis
H0: There is an impact of succession planning on
employee performance
Ha: There is no impact of
succession planning on employee performance
H0: There is a significant impact on career
management on employee performance
Ha: There is no significant
impact of career management on employee performance
H0: There is an impact of performance appraisals
on employee performance
Ha: There is no impact of
performance appraisals on employee performance
H0: There is a noteworthy impact of talent
management on employee performance
Ha: There is no noteworthy
impact of talent management on employee performance
Data Analysis
The
data analysis for the research helps to analyze the effect of independent
variables on the dependent variable by evaluating the qualitative and
quantitative designs. As the data relies on both qualitative and quantitative
analysis the data analysis has been done by analyzing the gathered responses
from the targeted respondents and the past research papers. Moreover, the
primary analysis has been done by encoding the data into SPSS and testing it
through regression, correlation, reliability. This helps the researcher to find
out the viewpoint of employees regarding the succession planning. On the other
hand, the qualitative data analysis has been done by representing the past
literature and case study related to the succession planning of employees.
Quantitative
Data Analysis
Quantitative
data analysis helps to analyze the responses that have been taken from the
employees of Tus airways. Moreover, the SPSS test has been applied after
encoding the data into SPSS sheet to make a proper analysis. Through SPSS, the
researcher has found out frequency tables regarding age and gender, regression
analysis to find out relationship and reliability analysis as well.
Frequencies
|
AGE
|
|||||
|
|
Frequency
|
Percent
|
Valid
Percent
|
Cumulative
Percent
|
|
|
Valid
|
20-25
|
36
|
14.4
|
14.4
|
14.4
|
|
26-30
|
101
|
40.4
|
40.4
|
54.8
|
|
|
31-35
|
63
|
25.2
|
25.2
|
80.0
|
|
|
36
above
|
50
|
20.0
|
20.0
|
100.0
|
|
|
Total
|
250
|
100.0
|
100.0
|
|
|
The
above table has been focusing on explaining the percentage of respondents with
respect to their age. However, different age groups have been seen to be
involved in the study including 20-35, 26-30,31-35 and 36 above. There are
about 14% of respondents having the age of 20-25, 40% of employees have an age
of 26-30, 25% of employees have an age of 31-35 and 20% of the respondents have
an age rate of 36 above. There was no specific age factor to choose the
respondent as the study relies on non-probability sampling.
|
Gender
|
|||||
|
|
Frequency
|
Percent
|
Valid
Percent
|
Cumulative
Percent
|
|
|
Valid
|
male
|
135
|
54.0
|
54.0
|
54.0
|
|
female
|
115
|
46.0
|
46.0
|
100.0
|
|
|
Total
|
250
|
100.0
|
100.0
|
|
|
The above table reflects the percentage of males and female
who have been involved in the study. However, the percentage of the male has
been spotted at 54% while the percentage of female employees was 46% less than
male. There are no such specific reasons because the researcher has chosen the
non-probabilistic convenient sampling.
Reliability
|
Reliability
Statistics
|
|
|
Cronbach's
Alpha
|
N
of Items
|
|
.813
|
10
|
The
above table shows the percentage of internal consistency and a degree which
defines the extent to which an assessment produces stable results. The table
shows the Cronbach alpha of .813 which declares a very good reliability and
consistency. This suggests that the scale which has been chosen for the testing
is reliable and comprises of high internal consistency.
Regression
|
Model
Summary
|
||||
|
Model
|
R
|
R
Square
|
Adjusted
R Square
|
Std.
An error of the Estimate
|
|
1
|
.785a
|
.616
|
.611
|
1.88382
|
|
a.
Predictors: (Constant), talent management, performance appraisals, career
management
|
||||
The
above table reflects the model summary of regression that depicts the value of
R and R square. The value of R represents a simple correlation, however, the
value of R is .785 which indicates a high rate of correlation. On the other
hand, R square indicates the percentage at which the dependent variable has
been explained by the independent variables thus it must be high in order to
obtain a significant level. The R square is 61% which predicts that the
dependent variable has been explained at 61% by all the independent variables.
|
ANOVAa
|
||||||
|
Model
|
Sum
of Squares
|
df
|
Mean
Square
|
F
|
Sig.
|
|
|
1
|
Regression
|
1401.225
|
3
|
467.075
|
131.616
|
.000b
|
|
Residual
|
872.999
|
246
|
3.549
|
|
|
|
|
Total
|
2274.224
|
249
|
|
|
|
|
|
a.
Dependent Variable: EmployeePerformance
|
||||||
|
b.
Predictors: (Constant), talentManagement, PerformanceAppraisals,
CareerManagement
|
||||||
The
above table of ANOVA reflects the regression model and explains the
significance of the variables. The relationship between the dependent and
independent variables is significant when the p value is less than 0.05. The
above table reflects that the sig value is <0.05 which means that there is a
significant relationship between employee performance (dependent variable) and
all the independent variables including talent management, performance appraisals,
and Career management.
|
Coefficientsa
|
||||||
|
Model
|
Unstandardized
Coefficients
|
Standardized
Coefficients
|
t
|
Sig.
|
||
|
B
|
Std.
Error
|
Beta
|
||||
|
1
|
(Constant)
|
2.677
|
.684
|
|
3.913
|
.000
|
|
CareerManagement
|
.737
|
.109
|
.401
|
6.740
|
.000
|
|
|
PerformanceAppraisals
|
.409
|
.094
|
.221
|
4.354
|
.000
|
|
|
talentManagement
|
.528
|
.118
|
.274
|
4.480
|
.000
|
|
|
a.
Dependent Variable: EmployeePerformance
|
||||||
The
table above explains the coefficient analysis which provides a clear insight
into the relationship between the dependent variable with all the independent
variables. It predicts the significance of employee performance with the entire
model. Moreover, the regression model or equation could be reflected as
Employee
performance= 2.677+0.737 (career management)
Employee
performance= 2.677+0.409 (performance appraisals)
Employee
performance= 2.677+0.528 (talent management)
The
entire test reveals the result that if TUS airways implement the succession
planning strategies regarding career management, performance appraisals, and
talent management then they could be able to lift up the employee performance
level.
Qualitative
Analysis
With
respect to the qualitative survey, the analysis has been done on the basis of
past research papers which illustrates that the implementation of succession
planning has become vital in order to ensure continued success in the
organization. It might help the company to identify and integrate the right
roles for the critical job placements that might help in ensuring success in
critical times. Presently, the contemporary businesses of all sizes have been
focusing on the implementation of succession planning that ensures the leadership
in the company. Those companies who do not follow succession planning could
create an adverse impact on the future of an organization. Through the
implementation of succession planning the companies might be able to train the
right person for the leadership position so that he or she might be able to
mentor other in the future. In this way, the business could be able to attain
short term and long term plans and also obtain perfect structuring of the
business.
As
per the analysis, the management has been considered as fully responsible for
the management of succession planning. Only the planning of a succession
strategy is not important the companies must be able to manage the succession
planning process. All the stakeholders, directors and partners must be involved
in the process. The proper implementation of the succession planning might
acquire a great deal of success in enhancing both technical and managerial
roles. Succession planning process has not been considered as complex, however,
by focusing on the important factors of succession planning such as career
management, talent management, and performance appraisals could help the
company to obtain good succession planning. The consideration of succession
planning and management has been seen to be noteworthy in this contemporary
world because it could help in restructuring the organization roles as per
their objectives. Moreover, the most highlighted people who must be provided
with succession planning are those who are nearby retirement process. This
would create a sense of respect for those people who have served years of
knowledge and competencies to make continuous growth in the organization (WRS,
2018).
In
the field of human resource management, succession planning has been considered
as one of the essential and broader perspectives to work on. In the succession
planning and management, there is a systematic integration of identifying,
developing and retaining the employees to obtain the objectives successfully.
The
above diagram reveals the steps that help an organization to manage the
succession planning process. It includes identification of key positions and
areas, assessment of competencies required for the positions, identification of
right candidates, implementation plans for the succession plans and evaluation
of effectiveness.
Step 1 Identification of key
positions and areas
There
are some key areas and positions in the organization that are critical and
needs to be implemented under the strategy to obtain the certain objective. In
order to accomplish the succession planning process, it is important to fill up
the key critical positions. If the company would be unable to finalize those
critical roles and responsibilities then they would not be able to obtain the
goals and objectives. In order to identify key position and areas, the companies
must make risk assessment by analyzing the past performances. This could help
the company to decrease the risk rate.
Step 2 Identification of key
competencies for the required position
The
evaluation and determination of the key competencies are also one of the core
competency to manage succession planning. For this the companies must set up
the criteria for the employment efforts and expectations thus the management
must also involve in finding relevant knowledge, skills and abilities of the
employees to identify what will they be able to accomplish performance
expectation. Moreover, there must be a crystal clear understanding of the
competencies that are needed to obtain the succession planning objective. The
companies must take the support of profiling to assess the actions and
performance of employees as this might help the company to explore the skills
and competencies that are required for the particular objective (TBS, 2018).
Step 3 Evaluation of the
interested employees
After
certain steps, the company must evaluate the determination of the employees who
are interested to fill the critical positions. For this, the management must
share sustainable career plans to boost up the interest of employees and also
identifies those employees who could work hard to develop their position in the
specific job. The implication of healthy human resource management strategies
might help the company to explore internal hidden talent and expertise to
accomplish the idea of succession planning.
Step 4 Development for the
implementation plan
There
must be the proper incorporation of the strategies regarding training and
development to transfer the corporate knowledge in making the succession
planning effectively. For this, the company must define the processes related
to learning and training to obtain the major leadership positions. It helps in
turning the strategies into actions and provides a clear timeline for the roles
and responsibilities of employees.
Step 5 Evaluation of
effectiveness
After
the succession plan and implementation, companies must make effort to evaluate
the effectiveness of the process. The evaluation seems to be successful if the
key positions would be filled quickly and if the employees would get stable in
performing effectively as per their roles. The workforce must be monitored
systematically on daily basis in order to make continuous adjustments for the
successful succession planning (Bruns, 2018).
Conclusion and Recommendations
Conclusion
The
research relies on evaluating the impact of succession planning on the employee
performance level in the Tus airways in Cyprus. However, the study analyzes the
main factors of the succession planning such as career management, performance
appraisals and talent management that will create an influence on enhancing the
employee performance level. Through the succession planning the employees have
been motivated to be placed in the recognized position and to attain the
sustainable future they involve in working hard by engaging in the practices of
training and development, talent management in order to perform better.
Moreover, the research highlights that the emphasis of the organization on the
factors of succession planning could positively push the employee towards
productive performance.
In
a nutshell, the research reflects the results of both qualitative and
quantitative analysis which depicts that there is a significant relationship
between the employee performances and factors related to succession planning.
This means that by creating an emphasis on the succession planning factors
could create an effective and healthy succession planning for the organization.
The researcher has also described the succession planning management process
which is helpful for the company to manage the objectives of succession
planning implementation. Although the implementation of succession planning
could be complex for some of the organizations if it would be managed
effectively by the human resource management then the company could obtain
success in the succession planning implementation.
Recommendations
The study generates the
effectiveness of all the stated factors regarding succession planning thus the
organizations must practically implement it in order to achieve good results.
Some recommendations that must be followed by the organizations are:
·
The management must
clearly state the short-term and long-term objectives of the organization
·
There must be strict
policies for the employees to follow the right career path
·
The performance
appraisal system must not be conducted with biased behavior
·
Proper training must
be given to the employees for their career and talent development and
management.
·
The companies must
harness the expertise of the senior management
·
The HR team must
provide external and internal training to expand the set of competencies
·
Senior management must
play a role model for other employees in order to keep them motivated
·
The management must
keep on negotiating and be retaining the old employees in order to encourage
them to work progressively.
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