Succession Planning and Organizational Effectiveness of Manufacturing Firms in Port Harcourt, Nigeria

Reference code: MG020

ABSTRACT

The study examined the relationship between succession planning and organization effectiveness of manufacturing firms in Port Harcourt.  Mentoring and management development were conceptualized as the dimension of succession planning.  While increase productivity and market share were the measure of organizational effectiveness.  The researcher answered four (4) research questions and four (4) hypotheses in order to ascertain the degree of positive relationship between succession planning and organizational effectiveness.  Leadership model succession theory was adopted as the theoretical foundations for the study.  Cross-sectional survey research design was adopted for the study.  A total of one hundred and ninety-eight (198) respondent were drawn from a population of three hundred and ninety-three (393) across the twenty-one (21) manufacturing firms in Port Harcourt, Nigeria.  The researcher collected data on Macro Level Unit of analysis using a five 5-point Likert scale questionnaire.  The Questionnaire was validated via face validity, content validity and pilot test while Cronbach alpha was used to test for reliability of the research instrument. The data collected was analyzed at different levels. For primary level data, descriptive analytical tools precisely frequency tables supported with chats and descriptive statistics was employed for univariate analysis of data while for secondary data analysis, inferential statistical tool [i.e. Pearson Product Moment Correlation Coefficient (PPMCC)] was used for tertiary level data, the result of the findings revealed that mentoring and management development significantly influenced increased productivity and market share respectively. Based on the findings, the research therefore concluded that succession planning relates to organizational effectiveness of manufacturing firms in Port Harcourt, Nigeria.  The research then recommends that manufacturing firms in Port Harcourt, Nigeria should adopt succession planning activities in order to enhance organizational effectiveness

INTRODUCTION

As businesses grow rapidly and more complex, human resources in a company become the primary resource and one of the priorities which need to be addressed. All over the world, there is growing evidence that the manufacturing companies play an important role in the national economic development of any country. They are becoming more and more a subject of high attention in the developing countries, countries in transition but also in the countries with developed economies. However, most times we observe that these flourishing enterprises that have made remarkable impact in their respective industries wind-up just few years after the death of their founders or perhaps some of them as a result of the exit of one or two key players in the organization. These persons leave the organization either voluntarily (retirement or pursuit of new aspiration) or involuntarily (relieved of appointment or death). Organizations as a result of this are faced with vacancies in leadership or inadequacy or lack of competent and capable successors to fill the vacancies (Collins, 2009; Hazarika, 2009).

In Frey’s view (1988), Organizational effectiveness is an abstract concept is basically impossible to measure, instead of measuring organizational effectiveness, the organization determines proxy measures which could be used to represent effectiveness. Proxy measures used may include such things as number of people served, types and sizes of population and segments served.  In order to bridge this gap and ensure organizational survival/continuity through the maintenance of effectiveness, which is the ultimate goal of every establishment, succession planning, which is that approach that ensures that necessary talent and skills will be available when needed, and essential knowledge and abilities are maintained when employees in critical position leave, very necessary.

No wonder, Charan, Drotter, & Noel (2001) suggest that it is essential for organizations to train successors before the vacancies are created. Buttressing the same point, Hazarika (2009) stipulates that for organizations to survive, that there is need to plan for succession of older (outgoing) employees. Succession planning in the words of Charanet al, (2001) is perpetuating the enterprise by filling the pipeline with high-performing people to assure that every leadership level has an abundance of these performers to draw from, both now and in the future. From this perspective, succession planning is seen as management pipeline that accelerates management performance over a period of time.

Several research (Garman & Glawe, 2004; Charan et al., 2001; Hazarika, 2009) have been conducted over the decade as it relates to succession planning especially in family-owned businesses. Despite these numbers of studies, little empirical studies exist on succession planning and organizational effectiveness in developing countries especially in Nigeria. To bridge this gap, this study seeks to investigate whether succession planning has a relationship with the maintenance of organizational effectiveness.

TABLE OF CONTENT

CHAPTER 1:       INTRODUCTION
1.1 Background to the Study      1
1.2 Statement of the Problem 2
1.3 Purpose of the Study    3
1.4 Conceptual Framework        3
1.5 Research Questions          4
1.6 Research Hypotheses      4
1.7 Significance of the Study      4
1.8 Scope of the Study  5
1.9 Definition of Terms    6

CHAPTER 2: LITERATURE REVIEW
2.1 Theoretical Background    7
2.1.1 Leadership Model Succession Theory      7
2.2 Concept of Succession Planning 8
2.2.1 Succession Management     10
2.2.1.1 Succession Management Philosophy 14
2.2.1.2 Succession Management Model 14
2.3 Dimensions of Succession Planning 17
2.3.1 Mentoring as a Dimension of Succession Planning 17
2.3.2 Management Development as a Dimension of Succession Planning    19
2.4 Concept of Organizational Effectiveness  20
2.4.1 Models to Organizational Effectiveness 23
2.4.1.1 Coal Oriented Model 23
2.4.1.2 Input – Output Transformation Model 24
2.4.1.3 Strategic Constituent Model 24
2.4.1.4 Competing Values Model 25
2.5 Measures of Organizational Effectiveness 26
2.5.1 Increased Productivity as a Measure of Organizational
Effectiveness 26
2.5.2 Market Shares as a measure of Organizational Effectiveness 28
2.6 Relationship between Mentoring and Organization Effectiveness 30
1.6.1 Relationship between Management Development and Organizational
Effectiveness 31
2.6.2 Four models of Effectiveness Values 32
2.6.3 Criteria and Measures of Organizational Effectiveness 32
2.6.4 How Effectiveness is Measured 33
2.7 Effects of Succession Management on Organizational Effectiveness37

CHAPTERS 3:   RESEARCH METHODOIOGY
3.1 Research Design        40
3.2 Population of the Study      40
3.3 Sample Size and Sample Technique      43
3.4 Data Collection Method and Instrument 46     
3.5 Validity Test 47     
3.6 Reliability Test 48   
3.7 Method of Data Analyses    49

CHAPTER 4:  DATA PRESENTATION, ANALYSES AND DISCUSSION
OF FINDINGS
4.0 Data Presentation      50
4.1 Response Rate Analysis     54
4.2 Analysis of Demographic Properties of Respondents  56
4.3 Univariate Data Analyses 59
4.4 Ascertaining the Existence of Positive Relationship between Succession
Planning and Using the Scatter Diagram 65   
4.5 Bivariate Data Analyses        66
4.5.1 Test of Research Hypothesis One    66
4.5.2 Test of Research Hypothesis Two 67
4.5.3 Test of Research Hypothesis Three 68
4.5.4 Test of Research Hypothesis Four 69
4.6 Discussion of Findings      69

CHAPTER 5:  SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1   Summary of the Findings  72
5.2 Conclusions    72
5.3 Recommendations      73
5.4 Contribution to Knowledge      73
REFERENCES                              75
APPENDIX I


Reference code: MG020
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Reference code: MG020

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