CAREER PLANNING and SUCCESSION PLANNING

Anirudh Rangarajan Bhavya Garg Chinmay Mittal

Debapriya Mondal Dhaval Malhotra Divya Madhogaria

CareerCareer Path

Career Develop

ment

Career Manage

ment

Concepts of Career Management

Concepts of Career Management

• Career

o Sequence of work-related positions held by someone during lifetime.

• Career Paths

o Sequential pattern of jobs that form a career.

Concepts of Career Management

• Career management o Lifelong, self-monitored process that involves choosing and

setting personal goals, and formulating strategies for achieving them.

o Designing a strategy, assessment of employee and planning based on that assessment. Evaluation of the same is also carried out.

• Career developmento It is those personal improvements that one undertakes to

achieve a personal career plan.o Career development ensures that people with proper

qualifications and experiences are available when needed.

Careers and Career Planning

Careers and Career Planning

• What is Career Planning?

o Process where an individual sets career goals and identifies means to achieve them.

o Individual’s assessment of his/her interests, abilities and goals.

o Examining alternative career options

o Establishing personal career goals

o Developing a career path

o Planning how to progress through the career path

Careers and Career Planning

• Organization - Centered Career Planning

o Focuses on jobs and on identifying career paths that provide for the logical progression of people between jobs in the organization.

• Individual - Centered Career Planning

o Focuses on an individual’s career rather than on organizational needs.

Organizational and Individual Career Planning Perspectives

Process of Career Planning

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Placement on career path

Review of career plans

Individual Career PlanningComponents

Individual Career Management

Feedbackon Reality

Setting ofCareer Goals

Self-Assessment

Sample Career Development form

Individual Career Choices

CareerChoice

SocialBackgrou

nd

Interests Self-Image Personality

General Career Periods

Benefits of Career Planning

• To Individual Employeeo Explicit Career Patho Focused Self Development o Increased Productivity

• To the organization o Assured availability of talent o Attracting and retaining talent o Promoting organizational image

Methods of Career Planning

Communication Counselling Career Planning Workshops Self development materials Assessment Programme

Methods of Career Planning

Career development programs • Career workshops that use vocational guidance tools

(including a computerized skills assessment program and other career gap analysis tools) to help employees identify career- -related skills and the development needs they possess.

Career oriented appraisals • Provide the ideal occasion to link the employee’s

performance, career interests, and developmental needs into a coherent career plan.

How is career development today different from the past?

Old Paradigm

• Career in one organization

• Relational contract • Movement through

hierarchical advancement or intra- organizational mobility

• Career planning is taken up by the firm

New Paradigm

• Career spent in several organizations

• Transactional contract• Movement through

various organizations for advancement

• Individual is totally responsible for career planning

Factors influencing these changes

• Employment shifts • Organizational changes (technology and resources.• Changes in organizational structure (new organizing

principles)• Individual changes (attitudes and values) • Global competition

What organizations can do

• Create environment of continuous learningo training and developmento support employees joining professional groups

• Provide opportunities for o self assessment and introspectiono benchmarking employee skills and competencies against

those needed by company or job marketo in-house or outsourced career centres

What organizations can do

• Respond to work - life issues o dependent careo scheduling flexibilityo culture change

• Ensure consistency between career progression and organizational expectationso revamp promotional and reward systems that still might

weigh tenure and political skills heavily

What organizations can do

• Ensure career development is consistent with other HR processes and programs o developmental performance appraisalo succession planning processeso skill based rather than seniority based compensation.

• Re - deploy rather than outplace o requires investing in employee skills

Dual Career Path

Attract, retain and develop outstanding technical

talent

Involve the creation of alternate advancement

paths

for technical and managerial employees.

Dual

Career Path

Advantages

• More successful Hiring practice • Reduced Turnover• Higher Productivity• Lower management cost• Improved Training and Development Focus

• Honeywell International’s turnover among top technical performers traditionally hovered around 25%.

• Employees were leaving because they felt they had nowhere to go unless they went into management. But since the company rolled out a dual career system.

• “They haven’t lost any top talent” said Julian Kaufmann, corporate director for IT human resources.

Example

Succession Planning

Succession Planning

• Involves identifying key management positions the organization cannot afford to have vacant

• Purposes of succession planning o Facilitates transition when employee leaves o Identifies development needs of high potential employees and

assists in career planning.

• Many organizations fail to implement succession planning effectivelyo Qualified successors may seek external career advancement

opportunities if succession is not forthcoming

HR’s Role in Succession Planning

Identifying development needs of the

workforce

Assisting in identifying needed future

job skills

SuccessionPlanning

Noting employees who might fill future

positions

Communicating the successionplanning process to employees

Tracing and regularly updating

succession plan efforts

Areas for Planning “Succession”

Values and Benefits ofSuccession Planning

• Having an adequate supply of employees to fill future key openings

• Providing career paths and plans for employees, which aids in employee retention and performance motivation

• Continually reviewing the need for individuals as organizational changes occur

• Enhancing the organizational ‘brand’ and reputation as a desirable place to work

Common SuccessionPlanning Mistakes

• Focusing only on CEO and top management succession

• Starting too late, when openings are occurring

• Not linking well to strategic plans

• Allowing the CEO to direct the planning and make all succession decisions

• Looking only internally for succession candidates

JOHN WELCH

A Case Study on CEO Succession Planning at GE

• General Electric – World’s Largest Company as per Forbes with valuation of $ 260 bn

• Previous CEO – John Welch

• Current CEO – Jeff R Immelt

• John Welch in 1991 : “From now on, choosing my successor is the most important decision I'll make. It occupies a considerable amount of thought almost every day.”

A Case Study on CEO Succession Planning at GE

• CEO Succession Planning Process followed by John Welch

1994• List of essential

qualities, skills and characteristics for “an Ideal CEO”

• List of 23 potential candidates submitted to GE board

1994-1998• Organized

informal events to look at potential CEO candidates

1998• The original

list narrowed down to 8 serious candidates

• Developed “Eight Basic Objective for Selecting CEO Successor”

2001• Jeff Immelt

Selected as Successor to John Welch for heading GE

A Case Study on CEO Succession Planning at GE• Leadership Styles of Welch vs

Immelt

- Money Making Machine- Focus on Acquisition- Focus on Job Rotation- Focus on Short term

demand- Charismatic

- Customer Centric Company- Focus on Innovation

- Retain managers to make them specialist

- Focus on Long term strategies

- Natural Leader

Questions & Comments