Term Paper 1

Running Head: Term paper

CEO leadership succession with organization theory

[Student Name]

[University Name]
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Abstract:
Life is technical business, and organizations in real time do have dense need of balance of
practices along maximum knowledge sharing. However, succession planning is the way through
which a superior in hierarchy can give appropriate learning section to succor. Organization
theory sentences more about job responsibilities, reporting system, organizational
communication, culture and value system of organization. While on other hand, succession
planning favors to organization theory to get all of its philosophies implemented with appropriate
set of practices.
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Introduction:
Succession planning can play vital role in order to take organization towards balance of practices
and success. However, it is a mechanism whereby top management can ensure to employees that
they would be received training and development in such a way, a superior employee used to be
poured in the mechanism for improvement in knowledge, prowess, and set of abilities. The focus
of succession planning is to make ready to employees for more challenging and deadlock
situation handling. It is quite professional approach to retain senior employees for longer time
period than other’s trained stuff to be recruited; nobody will pass it over without inviting him
with job offer. Hence, it is generally common philosophy of every senior person inside the
organization that he would be given Wight-age in terms of attention, time, and development
given by organization. We want to herewith illustrate the importance of understanding
employee’s characteristics, and have to tell them specific career paths. On other hand, large
number of new a pool of recruits used to leave organization as of analyzing lesser growth for
them in future. On other hand, in following paper, we want to see succession planning with the
prospective of CEO. For while, there is bit of difference between ordinary succession planning
and top level succession planning. Japanese introduced succession planning terminology for first
time, and successfully implemented on organizational level. Succession planning is cost effective
technique to boast up talent inside the organization. However, knowledge sharing can lead
organization towards success. (Wenger, E, 1999)

In following paper, we have strong ambitions to deeply analyze the effectiveness of

succession planning on organizational level. However, we need to get good idea of tools and
technique that would be implemented in order to make this procedure more productive in nature.
CEO will provide counseling services to next nominated or selected chief executive officer. A
school of thought has believed that scission planning is quite helpful for maintaining balance of
practices. In today’s flashy paced world, you don’t have any choice that you may miss to pass it
on to other one. However, you need to foster a strategic talent and critical roles. Cornerstone
succession planning is to do management via career management, automated talent profiles,
focus on internal recruiting rather to pursue talent outside the organization, and comprehensive
organization capacity measurement analysis, and capabilities analysis. On other hand, it is
necessary to ensure competent people are promoting for right jobs. (Chris stewart, 2010)

There is statistical data available to show the trend of organizations regarding CEO
succession planning. You need to be pretty competitive, and if you don’t then there won’t be any
mercy for you. Life is technical business therefore CEO has to confront along extensive
competition moves. On other hand, sixty nine percent used to think that CEO should get ready to
hold off at the time of availability of competent replacement of him. While thirty nice percent
opined against internal promotion mechanism, and mooted the point that none of other person
from internal organization would be promoted to CEO level. (Golesmbiewski, R.T, 2001)

Citigroup example:
In real time environment, a true practice of succession planning is not that much simpler.
Organizations from all over the world are having celebratory CEO, who doesn’t have any
glimpse of its prime concerns. Personally, CEO shouldn’t ever be highest paid person inside the
organization as it may become helpful in management. Citigroup practiced succession planning,
and tried to implement the true soul of succession planning. In modern world, it is deemed good
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methodology to enthrall motivate to your executive level employees.

Post modern approach:

Organizations are now pursuing towards post modern conceptualizations of leaderships.
However, organizations have enormous facility with which they can underpin reengineering,
downsizing, and restructuring. Leaders don’t want to hold decision making with them as they
want it to push towards lower levels. On other hand, it is inevitable that they can bring changes
in existing practices. Organizations aims to investigate new methods of leadership, and to
evaluate the response of attendants. Most of the organization theories normally sentence about
conventional ideas for organizations. Therefore, they used to hold fundamental assumptions that
say much about the communication, administration, structure of job, and leadership. On ground
reality, we may become well informed through understanding the sway of leadership in
organizations. Organizational practices are taking shift from stubborn structures to more flexible
structures with less bureaucracy and more integrated environment. Post modern approach of
succession planning requires those leaders, who are not supposed to take decision with short
vision but increasingly with their own preferences, beliefs and conviction. Leaders need to
understand external job relationships and internal job relationships well. On other hand, they
have to encourage employees for creativity, and need to manage diversity as well. Personal
ethics is bigger issue at time of installation tittle-tattle principles and social laws. Organizational
behavior theory pinpoints important things to be practiced such as human values, non rational
base for decisions, thought and constructed realities, cause and effect analysis, and
conceptualizations of leadership. (Rober T. Golembiewski, 2009)

Contribution of social tools in succession planning:

It is good for organizational health to practice social strategies. However, antisocial behavior
should be shunned to maximum level. As far as social tools are concerned, these are such as
organizational character, control through centralized approach, creativity, culture, clarity,
cohesion, and choreography etc. organizations have to exercise higher level character as most of
the organizations don’t formulate social acceptable strategies and their roots in history are not
found as well. Hence, such types of organizations don’t take stand for right, noble and ethical.
On other hand, character strategy entices to social tools to usher organization in order to develop
ethical criteria and moral obligations. As far as controlling is concerned, it has been observed
that most time organizations are being headed by conventional bosses. So, it is better to
decentralize their authority. In fabric manufacturing industries these set of strategies used to be
employed, and it is thought necessary to hold control over organizational behavior. Highly
bureaucratic organizations seem to be economically dead brain; they don’t participate in
economic development. These organizations need to emphasize on social tools, if management
wants to see organizational growing in near future. There is another social tool that is culture, it
shows how organization sense to real world. Many organizations still now used to give image of
Stone Age, where there are lesser employee development programs, and they are being handled
with old conventional approaches. Social strategies normally have strong ambitions to reinvent
to organization. Their basic objective is to change the DNA of an organization. On ground
reality, there is strong relationship between social tools and succession planning as both has
dependability on each other. CEO is supposed to exercise true soul of social strategies while
providing training to its subordinates.
For succession planning, it is important to have knowledge about social tools, and practices as it
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can enhance performance level to some extent. CEO can take maximum help through
understanding about social tools. (Shirky, C. (2008).

Self believe for succession planning:

Succession leadership conception can never be successful until unless the person is being given
training has believed in himself. On other hand, it is important to realize it to successor that
without self leadership, he will not be enormously able to implement worthwhile strategies for
organization. CEO is supposed to work on the behavior of successor in the beginning. In case of
strong self realization about his personal prowess, a successor can learn things with agility. For
instance, a Fertizler producing company from third world started to work on same notion, and in
synthesis they got success by showing higher performance. Hence, company set benchmarks for
others. We need to look deeply how this had been practiced somewhere in back dates.
Ownership decided to sell out equity shares of Fauji Fertizler while top management and rest of
senior executives purchased all of its shares. They were passed through succession planning
mechanism therefore they were trained enough to handle organizational practice. That it was
actually practiced at that particular time. (Linda K. Fairburn BIS, MSOD (2010)

A company has to walk on set of rules and regulations trail in order to accomplish its
milestones. On other hand, succession planning must see level of board of director support, the
development of policy documents and board governance, the nature of departure, organizational
culture, age and lifecycle of the organization. On other hand, there is bookbinding relationship
amid succession planning and self leadership as it helps in the implementation of policies and
meeting annual objectives. Any advancement in techniques doesn’t work unless people realize
them with full senses. Self assessment makes you realize whether you will go aloof in
engagements terms or you will hire a professional consultant to take professional feedings.

Organizational cost involvement in succession planning:

Succession planning gives agenda setting to organization like what it needs to be instead of
modifying or altering organizational skeleton. There is no free mess on the earth; everything has
its transaction cost regardless of categorical head. Hence, cost profit analysis makes us to think
about benefits, if benefits in return that we will be receiving are more, our decision will have soft
corner for it. Hence, there are two prospects to get organizational success. First you have
excessive resources to buckle down your competitors. Second, it is to realize to workforce that
their changing positive attitude may take organization towards miracle success. Organizations
used to set criteria to identify, develop, and select the successor, whosoever is the best suitable
with accordance of required skills of declared post. Each organization always wishes to enhance
talent pool, when this needs to happen anecdotally it would be said succession planning. Offering
employee development tools and resources normally have bookbinding relationship amid
succession planning systems, and it would be underpinned as cost factor. A research has been
conducted to check effectiveness of succession planning. The results were astonishing as people
that organization used to hire from outside organizations; they don’t prove to be efficient
performers. It has been noticed that only fifty percent of them remain successful in outside
organizations otherwise people, who used to be promoted internally. Their rate of success is sixty
five percent. For instance, the cost of replacing customer representative manager is higher than
of cost of promoting junior CRM. On other hand, further employee development cost seems
lesser if organization able to increase productivity, commitment, and talent. Organizations are
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supposed to save bigger portion of recruitment expenditure by believing on succession planning.

It has been observed, and some how reflected through larger organizational setups that they don’t
want to loose their pertinent talent. Nobody ever wish to let its talent permit to join other
organizations because of higher salary packages. In synthesis, succession planning is one of the
methods to save cost. SHRM’s talent report revealed certain facts about the drivers for
institutional success level. While health care industry, customer services industry, technology
repair, and computer technology oriented industry can not afford venerability of losing
worthwhile talent. A labor pool survey screened on several concerning things regarding labor
expected behavior in upcoming future dates. Human machines are superior machines than
technological equipped machines as they used to boom up their performance level by getting
daily experience. It is less costly to pass talent senior executives through different decided ways
in order to get lucrative work from them. (US General accounting office (2006)

Essentials for CEO succession planning and organization theory:

Succession planning needs following things to be done so far as it should be integrative along
current human resource technology. It should have flexibility to incorporate global knowledge
management, need to have measurable drivers and metrics, needs to have software
implementation for the purpose of quick information availability. Succession planning should
emphasize on overarching planning initiatives rather to practice conventional practices. CEO is
supposed to better understand long-term and short-term goals and objectives, and on the basis of
his personal assessment, he is expected to list down essential ingredients for succession planning.
On other hand, succession planning should have artificial intelligence features in it to understand
the employee’s prediction. It is more important to understand the need of your employees. For
instance, CEO can not get optimal work out of its employees unless he knows their development
needs. He must understand nurture part as well because it may happen; power distance in some
societies is enormous. So, people will not like to get indulged or given succession counseling.
They will likely to be promoted either through seniority basis or performance basis. (US General
accounting office, 2006).

Practical view point of succession planning:

As far as organizational theory is concerned, everybody used to practice theory for everyday at
time of understanding the things. So, conclusively organizational theory can be replaced along
common sense. Common sense makes thing easier for you for understanding. Theories intend to
give concepts, and those concepts generally emerge phenomena of interest. It is difficult to
explain phenomena of interest some times. However, human behavior is notorious, and
unpredictable despite of tighten conditions implied such as psychologist can be quite helpful in
understanding individual behavior via employing different available techniques. There is no as
such theory that can be implemented in every condition. Hence, diversity, academic displine,
cultural barriers etc used to fail in incompatible conditions. (Saussure, Ferdinand de (1997)

Organizational theory has been developed in different eras as it took startup from early
1900s, and being developed up till now. Organizations are not entirely based on physical
structure as they need to be technologies systems and social mechanism. These components are
generally multi-dimensional and immeasurable. However, organizations are supposed to comply
like open system that has to some how interact with environment. For example, taking supply,
recruits and finance from outbound world and convert them into products, services, pay wages,
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and dividends. Technology and human resource used to perform intermediary role that helps to
convert inputs into outputs. (HRM Guide, 2010). Organization theory covers succession planning
through social and organizational approaches. Succession planning would help to CEO to
practice true soul of professional techniques. Human machine needs lubricant of motivation
some time in order to enhance performance level. However, it would be harder choice for
organizational CEO to loose talented employee base only for fewer amount of money. (Hassard,
John (1998)

Modern organizational theory:

Organizational theory deal along internal working, formal structure, and outbound environment
of complicated human behavior inside the organization. Human resource practices are genuinely
different particular in public sector organizations and private sector organizations. As far as
modern approach is concerned, it tells the things like how work and workers have to be
managed, and it tried to state management techniques to get hold over organizational behavior.
Modernize organization theory also sentences to highlight social concerning issues. It is more
critical in nature, and growing awareness sometimes becomes challenge for management. (HRM
Guide (2010)

Post modern angle of organization theory:

As far as post modern organizational theory is concerned, it normally has social, symbolism and
interactions elements. Our prime concern here, to see its importance for succession planning.
Social theories are of great importance as those conduced in post modern organization theory
conception up to maximum level. Roles of subunits had been cleared due to true soul
implementation of an appropriate set of principles and policies. Post modern organization theory
deeply empathizes to increase public relationship. On other hand, symbol system is not ordinary
system at all as practice of specific culture without symbolism would be taboo for some regions
on the land. Diversity is not bad thing but its good for organization. However organization solely
shuns diversity, and has to supposedly manage it. Post modern organizational theory has several
important things that ha been discussed, and promised to make it implemented. Changes that
have been occurred in post modern age. In addition to, it becomes responsibility of organization
to facilitate to its customers.

Succession planning is index of transformational leadership:

There is bookbinding relationship amid transformational leadership conception and succession
planning. at the same time as the Transformational Leader seeks obviously to convert the
organization, there is also a unstated undertake to supporters that they also will be misshapen in
some way, perhaps to be more similar to this astonishing leader. In some compliments, then, the
followers are the invention of the revolution. (Rousseau, D. M. (1997).

One of the traps of Transformational Leadership is that infatuation and self-confidence

can with no trouble be incorrect for genuineness and authenticity. at the same time as it is true
that great things have been achieved throughout passionate leadership, it is also accurate that
numerous ardent people encompass led the allege right over the overhang and into a limitless
abyss. Immediately for the reason that someone believes they are accurate, it does not signify
they are right. (Martin parker (1999) inconsistently, the energy that gets people disappearing can
also source them to give up. Transformational Leaders often have bulky amounts of keenness
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which, if unremittingly functional, can be dressed in out their followers.

Transformational Leaders also be inclined to witness the full-size portrait, but not the
particulars, where the evil spirit often lurks. If they do not have people to acquire care of this
echelon of in sequence, then they are more often than not damned to be unsuccessful. In
conclusion, Transformational Leaders, by definition, look for convert.

Generic concept implementation varies with respect to organization nature as

transformational leadership in government organization should in different while practice of
transformational theory in private organizations would be differently practicing. In private sect,
where CEO are supposed to have maximum power, and they can take decision on the behalf of
his investment in business. On other hand, government organizations are on safe end as they
don’t have practice of succession planning. Employees used to be promoted on seniority basis.
(Bass, B. M. (1990).

Success rate of succession planning within organizational theory:

Organizational theory is itself supportive along stated approaches. Hence, it is not only technique
left to be implemented for the sake of getting lucrative results. There are countless methods,
procedures and theories available in human resource management discipline. Thus, successful
implementation can never be evaluated only through well sentenced words. CEO succession
planning would have to culminate vital component of organization theory. People who had been
inducted or promoted via practicing succession planning conception, they showed optimal
performance as there was nothing newer for them. It is important for moderating practices, and
this is how, employees can shunt towards right direction. (Burke, W. W. (2002)

Conclusion:
In synthesis, CEO has dense need of different planning techniques in order to retain talent inside
the organizations. However no wise man would ever wish to loose talented workforce. On other
hand, organizational theory is not against to succession planning. We observed throughout the
paper that organization theory has been passed through couple of eras. At every level, some
important addition has been done in it. Succession planning can be improved by making it align
with organization theory. On ground reality, modern organization theory is basically more
socialism and symbolism oriented while post modern theory draws enormous attention on public
relations. It talks to realize people towards cohesion and unity. For instance, public relationship
inside the organization may boast performance level of organizations. Organization must send
employees for training seminars, workshops and out of country for study purposes.

Recommendations:
As far as recommendations part is concerned, Chief executive officer is supposed to set it
mandatory for every executive level promotion. According to a survey, people who used to be
inducted from outside the organization their success rate is not more than fifty percent but who
are to be promoted from inside the organization. They have success rate of sixty five percent.
Employee training schedules should be determined with maximum possibility of knowledge
transfer. On other hand, it should be policy part like which criteria would be appreciated for
succession planning phase.
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References:

Wenger, E. (1999). Communities of practice; Learning, meaning, and identity. Cambridge:

Cambridge University Press. ISBN - 0521663636

Chris stewart (2010) ‘Cornerstone succession planning & career management: engage, retain and
grow your best talent’ on 16/06/2010 from http://www.cornerstoneondemand.com/leadership-
development-and-succession

Golesmbiewski, R.T (2001) looking towards 2000 and beyond: some developmental tendencies
in organizations’ international journal of public administration 17(3): 459-464.

Rober T. Golembiewski (2009) ‘’Handbook of organizational behavior’ vol-2, p. 240-251 on

16/06/2010 from http://books.google.com.pk/books?
id=g5pD9ciNvA0C&pg=PA246&lpg=PA246&dq=postmodern+approach+of+organizational+be
havior&source=bl&ots=uSWJnCGOAn&sig=HUbqBLsvf9z34JRHxwBNSfpaTOc&hl=en&ei=
O7kaTKi9Ec7XcYP9hbQK&sa=X&oi=book_result&ct=result&resnum=4&ved=0CCsQ6AEw
Aw#v=onepage&q=postmodern%20approach%20of%20organizational%20behavior&f=false

Shirky, C. (2008). Here comes everybody: The power of organizing without organizations. New
York: Penguin Press. ISBN – 9781594201530

Linda K. Fairburn BIS, MSOD (2010) ‘Non profit succession readiness self assessment’ on
16/06/2010 from http://www.makethingshappen.net/papers/npselfassessment.pdf

US General accounting office (2006) ‘Succession planning critical amid workforce shifts’ on
16/06/2010 from http://www.insala.com/Articles/succession-planning/succession-planning-
critical-amid-workforce-shifts.asp

Saussure, Ferdinand de (1997) ‘The archeology of knowledge and the discourse on language’
New York: McGraw-Hill.

Hassard, John (1998) ‘Overcoming hermeticism in organization theory: An alternative to

paradigm incommensurability: human relations’ 41/3: 275-99.

HRM Guide (2010) ‘Organization theory’ on 16/06/2010 from

http://www.hrmguide.co.uk/history/organization_theory.htm

Rousseau, D. M. (1997). Organizational behavior in the new organizational era. Annual Review
of Psychology, 48, 515 -532).

Martin parker (1999) ‘Post modern organizations or postmodern organization theory’ vol-13,
no.1, 001-17, DOI: 10.1177/017084069201300103. Staffordshire polytechnic UK.

Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the

vision.Organizational Dynamics, (Winter): 19-3
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Burke, W. W. (2002). Organization Change: Theory and Practice. Thousand Oaks, CA: Sage