An Assessment Study on the Practice of Succession Planning Program in Commercial Bank of Ethiopia
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Date
2015-06
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Addis Ababa University
Abstract
The purpose of this study was to assess the practice of succession planning efforts of Commercial Bank of Ethiopia as perceived by the respondents. To this end, the writer examined the practice of succession planning in light of 8 variables(practical ideal types) namely; top management support, dedicated responsibility, needs driven assessment, professional development opportunities, focused individual attention, extension to all levels of an organization, inclusion in the strategic plan, and unique public sector issues.
A questionnaire was administered to 148 respondents. Moreover, focused interview was made with three managers at different levels. The data collected from questionnaires were analyzed using descriptive and inferential statistics. The findings of the study showed that the descriptive statistics for the overall score of measures of succession planning, i.e. the mean score for all of the items relating to succession planning was 3.71. This reflects respondents were generally responded positively and hence all the categories of the ideal succession planning model with some degree of gaps were being utilized by the CBE's formal succession plan.
To find out if the above independent variables (components of succession planning) have association or explaining the succession planning efforts in the context of Commercial Bank of Ethiopia, the result of Pearson correlation coefficient revealed that there was significant positive correlation among the components of succession planning in the bank to the error level of about 0.001, but still with some variation. This suggests the variables employed were practical to examine the succession planning efforts in the bank.
In response to challenges to implementing succession planning, lack of formal mentoring, lack of clarity in selection, lack of awareness among all employees, lack of systematized information, resistance to change, lower expectation in the program, and lack of proper follow up were the major challenges as identified by respondents in the open-end response of the questionnaire as well as in focused interview.
The recommended actions based on the practice include; elements in the practical ideal type categories need to be implemented were establishing formal mentoring, undertaking regular competency requirement assessment, assigning a responsible coordinator in each unit, applying carrier counseling, and utilizing carrier path planning as an incentive. Similarly, the elements that need to be improved include communicating of SP program to all levels, increasing diversity, encouraging participants to submit their own carrier goals, and extend SP program to all levels.
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succession planning, practical ideal types of succession planning, professional development opportunities