Effect of Succession Planning in Banking Industry

This study sought to analyse the effect of succession planning on organization performance, with a specific focus on bank. The research questions that guided the study included: How has talent management impacted Bank’s performance? What impact has the existing succession planning processes had on Bank’s performance? What are the effects of skills and competencies gap analysis impacted Bank’s performance? Descriptive research design was used in this study. The target population of the study comprised of employees from Bank. The sampling frame was drawn from the Bank Human Resource Department. Simple random sampling technique was employed to select the respondents. A sample size of 92 employees from Bank was used in the study. Study data was collected using structured questionnaires which were self-administered. A pre-test of questionnaire was performed by the researcher to identify their consistency in picking up the right information required for the research. This study used descriptive statistics to analyse the data that was obtained from the field. Regression and correlation analysis were used to determine the nature and the strength of the relationship between the independent and the dependent variables. The results of the study were presented using figures and tables. The study showed that the bank had a systematic approach to attract and retain high performing employees, achieved through talent management which promoted the workforce efficiency and productivity within the bank. Hiring and selection of employees influenced the bank’s performance, as well as their investment in enhancing their employees’ skills and competencies with the aim of meeting the needs of their dynamic business environment. The bank used coaching practices to assist employees to meet organizational goals, and to enhance the performance of its employees. The study revealed that succession planning processes at the bank involved preparing for change in leadership, and it ensured that high performing employees were retained and rewarded. Individual employee career goals and objectives were important to the bank’s succession planning, because it identified key attributes that were essential for leadership development in critical roles. The bank however, faced barriers to its succession planning and leadership development, even though it focused on its sustainability. The recruitment v process ensured that the bank did not have a surplus or shortage of staff, and its application of knowledge management had facilitated the integration of people, processes and technology that created value for the organization. The study showed that the bank had the ability to identify the skill levels and competencies of workers who could meet its requirements, and as a result, its profitability had been adversely impacted by its employees’ skills and competencies. Development of specific competencies had contributed to the bank’s continual improvement in employee performance, and its leadership had a great impact on the performance of employees. The leadership team of the bank encouraged employees to participate in decision- making for the benefit of the bank, as well as playing a fundamental role in building leadership capacity by developing and preparing high potential employees for now and the future. On talent management, the study concludes that the bank had measures in place that encouraged employees to remain in the organization for the optimal period of time, and its compensation plan was considered an effective technique for organizational performance. On succession planning processes, it can be concluded that, generating new knowledge was vital for the bank since it had positive effect on its performance, thus conducive environment that encouraged sharing of essential business knowledge across functions had been fostered by the firm management. On skills and competencies gap analysis, it can be concluded that, utilization of knowledge acquired by the bank had been used to transform its potential capabilities to realized and dynamic capabilities. On talent management, the study recommends the managers of Bank to create retention programmes for the firm. On succession planning process, the study recommends Bank managers to fine-tune the process and ensure that fundamental positions within the International Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 08 Issue: 07 | July - 2024 SJIF Rating: 8.448 ISSN: 2582-3930 © 2024, IJSREM | www.ijsrem.com DOI: 10.55041/IJSREM36615 | Page 2 bank are always filled, and retain capable talent within its pipeline. On skill gap and competency analysis, the study recommends Bank managers to put in place programs that would effectively identify the skill gaps within the firm, and subsequently invest in training.