ABSTRACT
The study determined the impact of management succession on organizational performance (A study of selected manufacturing firms in Delta State). study sought to identify the impact of leadership development on organizational effectiveness of the selected firms in Delta State. analyze the impact of succession plan on organizational profitability of the selected firms in Delta State, evaluate the impact of exist strategies on the productivity of the selected firms in Delta State, determine the impact of contingency plan on the performance of the selected firms in Delta State and assess the challenges of management succession on the performance of the selected manufacturing firms in Delta State. This study adopted survey design. The study make used of both primary and secondary data source. The total population hereby comprised of 371 staff of manufacturing firms. The sample size is 193. A stratified sampling method was adopted and it gave the staff an equal chance of being selected. Simple regression model and Multiple regression model was employed to test the hypotheses of the study. The findings of the study stated that Leadership development has significant impact on organizational effectiveness of Coleman Wireless and Cable and Wichtech Industries Limited in Delta State. Succession plan has significant impact on organizational profitability of Coleman Wireless and Cable and Wichtech Industries Limited in Delta State. Exist strategy has significant impact on the productivity of the Coleman Wireless and Cable and Wichtech Industries Limited in Delta State. Contingency plan has significant impact on the performance of the Coleman Wireless and Cable and Wichtech Industries Limited in Delta State. Supremacy, political unrest, conflict of interest, leadership abuse, wrong policy formulation and implementation, lack of understanding, poor leadership development and trust issues have significant impact on Coleman Wireless and Cable and Wichtech Industries Limited in Delta State. The study recommended that There is need for the management of the studied firms to apply adequate succession planning since it will enable them achieve their aim as at when due. This in the long run will bring growth and development to the organization
TABLE OF CONTENTS
Cover Page i
Title Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Table of Contents vii
List of Tables viii
Abstract ix
CHAPTER
1: INTRODUCTION
1.1 Background
of the Study 1
1.2 Statement
of the Problem 3
1.3 Objectives
of the Study 4
1.4 Research
Questions 4
1.5 Research
Hypotheses 5
1.6 Significance
of the Study 5
1.7 Scope
of the Study 6
1.8 Limitations
of the Study 6
1.9 Brief
Profile of the Organization Under Study 7
1.10
Operational Definition of Terms 8
CHAPTER
2: REVIEW OF RELATED LITERATURE
2.1 Conceptual
Framework 10
2.1.1
Management succession 10
2.1.2 Succession planning 11
2.1.3
Types of managerial succession strategies Huang (2004) identifies 12
the
following types of succession strategies
2.1.4
Dimensions of management succession 13
2.1.5
Contribution of management succession
practices to employee retention 26
2.1.6
Current trend of management succession in organizations 27
2.1.7 Organizational
performance 28
2.1.8 Organizational performance indicators (measures)
29
2.2 Theoretical Framework 30
2.2.1 Talent DNA model 30
2.2.2. Trait and factor
theory 30
2.2.3. Acquired needs theory
31
2.2.4. Relay
succession planning model 31
2.2.5
Scharmer’s
theory U model 32
2.3 Empirical
Review 32
2.4 Gap
in Literature 35
2.5 Summary
of Reviewed Related Literature 35
CHAPTER
3: METHODOLOGY
3.1 Research
Design 36
3.2 Sources
of Data 36
3.3 Population
of the Study 36
3.4 Sample
Size Determination 37
3.5 Sampling
Technique 37
3.6 Description
of the Research Instrument 38
3.7 Validity
of the Research Instrument 38
3.8 Reliability
of the Research Instrument 38
3.9 Method
of Data Analysis 38
3.9.1 Model
Specifications 39
CHAPTER
4: DATA PRESENTATION AND ANALYSIS
4.1 Return
of Questionnaire 41
4.2 Data
Presentation 42
4.3 Test
of Hypotheses 49
4.4 Discussion
of Results 54
CHAPTER
5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings 56
5.2 Conclusion 56
5.3 Recommendations 57
5.4 Areas of Further Studies 57
References
Questionnaire
Appendices
LIST OF TABLES
Table Page
Table
3.1: Population table 36
Table 3.2 Breakdown of the sample size 38
Table 4.1: Rate of return questionnaire 41
Table 4.2: Distribution of
the respondents according to their socio economic 42
Table 4.3: What is the impact of leadership
development on organizational 44
effectiveness of the selected firms in Delta
State.
Table 4.4: What is the impact of succession
plan on organizational 45
profitability the selected firms in Delta
State?
Table 4.5: What is the impact of exist
strategies on the productivity of 46
the selected firms in Delta State?
Table 4.6: What is the impact of contingency
plan on the performance of 47
the selected firms in Delta State?
Table 4.7: What are the challenges of
management succession on 48
the performance the selected firms in Delta
State?
Table 4.8: For hypothesis 1, we specify regression
49
Table 4.9: For hypothesis 2, we specify
regression 50
Table 4.10: For hypothesis 2, we specify
regression 51
Table 4.11: For hypothesis 4, we specify
regression 52
Table 4.12: For hypothesis 5, we specify
regression 53
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
business environment of today has provides and produce various competitions;
one good way of maintaining balance between an outgoing manager and an incoming
manager is through succession. This therefore means that management succession
is paramount and therefore vital to the growth and continuity of any
organization, be it locally made firm or foreign establishment. Today is quite
true and proper to state that management succession has become a strategic
focus mechanism for the 21st century firms because its allows and
encourages leadership spiritism, provides proper and adequate guidelines for
idea generation, adequate training and regular follow up strategy which in turn
can leads to business growth and continuity in the long run (Thompson &
Strickland, 2010).
Consequently,
management succession has become an important talent management initiative at
companies around the world are finding suitable ways to identify and train
there successor to cultivate the habits of responsiveness and diligent. Since
management success appears to be a strategic process that minimizes leadership
gaps for critical positions and provides opportunities for top talent to
develop the skills necessary for future roles. Also, management succession is a
constant struggle, viewed as an administrative exercise rather than as a
competitive advantage. In strong economic times, it is easier to ignore
deficiencies in the succession management process but in the current economic downturn,
the need to identify and develop top talent for critical roles has never been
more important. In recent times the application and adoption of effective
succession management enables companies/firms and even industries to react
quickly to change and endure difficult times at its best. Succession management
allows a company to seamlessly merge its employees’ capabilities and career
aspirations with the company’s business strategy and talent needs (Gamson &
Scott, 2007).
Perry
(2009) opine that that management succession simply means “war of talent”
implying that organizations, particularly government agencies and private
establishment become more effective in attracting, retaining and motivating
employees who possess the zeal and willingness to lead an organization towards
a greater tomorrow. Management succession simply means talent attraction which
denotes the capability of an organization to entice employees to the
organization by enacting policies and procedures that allow for employee choice
and both selection and retention in the organization (Zhu, Chew, &
Spangler, 2005).
In
addition, management succession today is becoming a top priority for any
organization that wants to stay in business and remain relevant in the 21st
century (Margerison, 2012). Newell (2002) states that organizations can no
longer afford to waste ‘people talent’ if they are to remain competitive into
the next century. Through succession planning the active and positive support
of people can be gained and dully rewarded (Parsloe, & Anderson, 2007). The
primary aim of a manager is to have the
ability to develop his or her employees to be responsible by possessing the
ability and willingness to assume any available position irrespective its challenges
set aside. (McCarter & Schreyer, 2010).
Furthermore,
the fact that a worker will certainly at a particular time retire, get
promoted, retrenched or even die emphasizes the fact that these are quite
inevitable; therefore management succession strategy must be integrated into
the process of corporate planning so that business plan or organization might
achieve their result. Gamson and Scott (2007), opines that management
succession strategy is a function of quality development programmes available
in an organization. It can also be rightly said that training of employees can
provide organization effective success and improved productivity and efficiency
as well healthy climate characterized by unity of purpose and the desire to
improve and increase staff performance. Succession planning in an organization
has the capacity to reduce the need to bring in new talent and therefore
reduces the expense of recruiting from the outside world. Today firms need to
be able to find people with the right skills to fill key and top management
position at any time required through having in place an effective succession
plan in place (Rollins, 2003).
Moreover,
one important aspect of management succession is that it’s ensure continuity of
the organizations performance and it’s very survival. This could only imply
that the application of succession helps to facilitate a smooth leadership
transition by providing better and comfortable ways to finding the right
employee to fill up leadership gap. More so, another most important use of
management succession is that its help organization formulate a valuable
insight about it work force by gathering information of background expertise,
performance and carrier aspirations, thereby aiding the process of recruitment
by finding the right people for the right jobs in case of expected or
unexpected changes in the organization (Armstrong, 2010).
Sequentially, it would be appropriate
to state that in today’s business environment characterized by various
competitions and dynamic changes in both governmental policies and customers’
needs or behaviour the significant of the right management succession today
brings about fast pace in the growth of an establishment. It equally helps to
audit the talent pool of the organization which helps in the allocation of
responsibilities and development strategies to fill the identified gaps;
Implementing succession plan will helps to ensure organization bench strength,
solidify the viability of cooperation beyond certain charismatic executive and
may inform future acquisition (Graham, 2012). It is against this background the
study seek to investigate the impact of management succession on organizational
performance.
1.2
STATEMENT OF THE PROBLEM
The
principle of succession is as old as the history of man or the world itself.
Every human endeavor is characterized by tests, competition, survival and
succession in the course of time, because somewhere and sometime people have
been able to take up from their predecessors in other to ensure that continuity
is guaranteed.
Recently,
it has also been discovered that owners of businesses today often delay
succession planning until their later years because of distrust, fear,
disloyalty and even lack of commitment or possibly because of inability to find
the most appropriate and suitable hands to lead the organization and this in
both the long and short run still constitutes the reasons will management
succession continue to be a pivotal issue in industries today. Given the fact
that inadequate timing and lack of understanding still forms what may cause delay
in developing or training a successor to succeed a manager in today’s
organizations.
In
recent times, challenges confronting manufacturing firms are enormous and very
unpredictable, it is even worrisome to see that managers occupying key
positions may be transferred, promoted or may even be lost to death thus
creating a gap which might be difficult to fill because of poor leadership
development, wrong exist strategy, no proper talent search and contingency
plan; this however may still forms what contribute to poor growth
performance, unstable management
policies which in turn may lead to reduce market share and low customer base in
the organization in the long run. Furthermore, experience have shown that
management in organizations today do not put in place a contingency plan
against their retirement and dismissal, because of their personal desire and
motives, this as such could still forms what may affects management succession
in the future.
More
so, the issue of supremacy, conflict
of interest, political unrest, leadership abuse, wrong policy formulation and
implementation and lack of
understanding between the incoming and outgoing management is yet another
challenges affecting the growth and development of manufacturing firms in delta
state. Thus, history has shown that these challenges aforementioned often
reoccur because it’s forms what makes up competitions within staff in their
organizations such that if not properly and adequately managed and it can cost
a great disarm and discomfort in such organizations.
Today’s
challenge in organization is lack of staff interest towards responsibilities
and commitment; history has it that except an individual indicate interest or
shows passion and commitment to serve its easier to trained and development
such a staff to succeed another staff in an organization but this is not the
case because even the experienced, willed and qualified are down casted and
fears to assume some vital and sensitive position because of its threat to life
and even if accepted the responsibilities and challenges that present its self
still forms what might prevent such an individual from achieving the firms aims
and objectives. This is still another vital challenge confronting the
successors to assume and accept responsibilities from the predecessor in
manufacturing firms in delta Delta State.
In addition, another most vital
challenge confronting manufacturing firms in recent times is poor succession planning by management of
such organizations. Although most manufacturing firms run by experts who are
experience and understands the ways and manners things are done in their
organization, but there is no denying the fact that poor succession plan is yet
a trending setback affecting the growth, profitability and market share of the
organization. The lack of proper and adequate succession plan in manufacturing
firms might have the direct effect of causing the collapse of business
especially when key players leave the business upon retirement, transfer or in
pursuit of other options or career. The exit or exodus of key stakeholders can
make a business vulnerable and diminish its worth within a split second if not
properly managed. It is against this backdrop that the study investigates the
impact of management succession on organizational
performance.
1.3
OBJECTIVES OF THE STUDY
The broad objective of the study is to determine the impact of management
succession on organizational performance (A study of selected manufacturing
firms in Delta State). The specific objectives were to;
i.
identify the impact of
leadership development on organizational effectiveness of the selected firms in
Delta State.
ii.
analyze the impact of
succession plan on organizational profitability of the selected firms in Delta
State.
iii.
evaluate the impact of
exist strategies on the productivity of the selected firms in Delta State.
iv.
determine the impact of
contingency plan on the performance of the selected firms in Delta State.
v.
assess the challenges of
management succession on the performance of the selected manufacturing firms in
Delta State
1.4
RESEARCH
QUESTIONS
i.
What is the impact of leadership development on organizational
effectiveness of the selected firms in Delta State?
ii.
What is the impact of succession plan on
organizational profitability the selected firms in Delta State?
iii.
What is the impact of
exist strategies on the productivity of the selected firms in Delta State?
vi.
What is the impact of
contingency plan on the performance of the selected firms in Delta State?
vii.
What are the challenges of management succession on
the performance of the selected firms in Delta State?
1.5
RESEARCH
HYPOTHESES
H01: Leadership
development has no significant impact on organizational effectiveness of the
selected firms in Delta State.
H02: Succession
plan has no significant on organizational profitability of the selected firms in Delta State.
H03: Exist
strategy has no significant on the productivity of the selected firms in Delta State.
H04: Contingency
plan has no significant on the performance of the selected firms in Delta State.
H05: Supremacy, Political Unrest, Conflict of
interest, Leadership abuse, wrong policy formulation
and implementation, Lack of
understanding, poor leadership development and trust issues have no
significant impact on the selected firms in Delta
State.
1.6 SIGNIFICANCE OF THE
STUDY
The
study focused on the effect of impact of management succession on
organizational performance (A study of Coleman
Wireless and Cable and Wichtech Industries Limited
manufacturing firms in Delta State). This study will be of great benefits to
the following group of persons; the studied organizations, the successors,
policy maker, economic planners and researchers.
To
the study firms;
the study will stand as guild towards making sure that organizational
management and those in position of authority find suitable and better ways to
make the selection process through talents hunt and search for a good and
better successor in an organization. Also, through succession plan firms will
be able to avert all negative and future unforeseen occurrence that might serve
as a threat towards developing and training successor that might affect the
firms from achieving its aim as at when due.
To
successor; The study will help management of
business to mentor and train their successor to carryout task and be will and
capable of taking up responsibilities.
To
policy marker and economic planners; The
study will help policy makers and economic planners formulate policy that will
guild management and owners of businesses to carry out their responsibilities
To researcher; The study will serve as a
useful conceptual guide to making sure that students in school will appreciate
the work and used it as a guide for further studies.
1.7 SCOPE OF THE STUDY
This
research work focused on the impact of management succession on organizational
performance (A study of Coleman Wireless and Cable and Wichtech Industries Limited manufacturing
firms in Delta State).
Content
scope: The content scope of the study was to; identify
the impact of leadership development on organizational effectiveness of the
selected firms in Delta State, analyze the impact of succession plan on
organizational profitability of the selected firms in Delta State, evaluate the
effect of exist strategies on the productivity of the selected firms in Delta
State, determine the impact of contingency plan on the performance of the
selected firms in Delta State and assess the challenges of management
succession on the performance of the selected manufacturing firms in Delta
State
Unit
scope: The questionnaire will be distributed to
the staff of the selected manufacturing firms in Delta State.
Time
scope: The study will cover a period of one year.
Geographical
scope: The geographical scope of the study will
be Delta State,
Methodology
constraint: The study is predicated that the
researcher adopted descriptive survey research design with the aid of a
questionnaire in generating data for the study
1.8 LIMITATIONS OF THE
STUDY
The
research work is limited because of the inability to produce and reproduce the
available materials and as well print a comprehensive research work/material
which will appear in a presentable manner.
Finally,
financial challenges, photocopying and printing relevant materials,
departmental specification and accessories, distribution and gathering of data
with regard to cost of material and other accessorily cost is also a limitation
of the study.
1.9 PROFILE
OF THE ORGANIZATION
Coleman wireless and cable manufacturing firm
Coleman
Technical Industries Limited {"Coleman") was incorporated on the 1st
of July 1975 and started production in 1996 with the principal operation of
manufacturing of electircal wires and cables that meet international standards
for Oil Industries, Commercial and Residential. The Company was founded on the
principles of developing local industries that would in turn create jobs
through the production of good quality products.
Coleman
commenced cabled production in 1996 at its Ikotun, lagos Factory. It has since
metamorphosed to the first ranking cable manufacturing company in West Africa
with the tow ultra-modern cable factories of 200,000 square meters both Arepo
and Sagamu factories have an installed production capacity of process 60,000
metric tons of Copper and 40,000 metric tons of Aluminuim per annum which put
Coleman at over 80% of installed capacity in the country. The Sagamu Plant, an
architectural masterpiece, is Pioneer Factory commissioned in December 2014 to
produce Medium - high Voltage XLPE cables. It is the First of its kind in the
West African Sub region and places Nigeria as the sixth country in Africa with
such production capacity.
Coleman
Technical Industries Limited is an indigenously owned with a capital base
of over 20billion naira in Plant, Machinery, Raw Materials and Stocks.
The
firm has its location in Shop No 5, Powa Plaza,
A Division, Nnebisi Road, Asaba Delta Nigeria. Coleman Technical Industries
Limited (Coleman Wires & Cables) is into manufacturing of high voltage
electrical wires and cables that meet international standards for oil
industries, commercial and residential.
Wichtech industries limited
Wichtech Industries is the best
known company in the group and has a large footprint of 120 offices throughout
Nigeria. As a manufacturer and supplier of roofing, plumbing and paint
products, the name Wichtech has built its reputation on the quality of its
product and service. Supported by national billboard advertising, local TV
commercials and backed up by advertising on CNN international, the Wichtech
brand has become a household name in middle and upper income circles. Over a
period of 10 years, Wichtech has grown to become an outstanding international
partner of stone coated metal roofing supplied by New Zealand’s AHI Roofing
Ltd. (gerard-roofs.com), who supply products in over 120 countries worldwide.
AHI form part of Fletcher Building Ltd (fletcherbuilding.com), New Zealand’s
biggest listed company. Wichtech also provides distribution for AHI in Ghana,
Benin and Cameroon.
Other brands supplied
exclusively by Wichtech in Nigeria are IPS pipes from Argentina, Polyfit
Plumbing Systems from the UK, and PVC rainwater and drainage systems from
Britain’s Hunter Plastics.
Something else that sets
Wichtech apart is their investment in people. All of Wichtech Offices receive
annual training, both from suppliers and also from leading industry experts in
the fields of Professional Management, Leadership and Customer Service. From
the technical side, Wichtech employs a full-time British Training Manager who
coordinates training for installers throughout Nigeria. To date over 6,000
plumbing and roofing installers have received training and in 2014 dedicated
training colleges will be opened in Lagos and Asaba. These initiatives have
generated outstanding recognition for the company.
The
firm has its location in Shop 3 Dennis Osadebay
Road, By Traffic Light Junction, Asaba, Delta Nigeria. Wichtech
Industries Limited is one of the leading manufacturers of quality stone coated
metal roofing sheets in Nigeria with range of other products in plumbing
systems, drainage systems and more. The organization has its website
(info@wichtech.com).
1.10 OPERATIONAL
DEFINITION OF TERMS
Management succession
Management
succession simply means talent attraction which denotes the capability of an
organization to entice employees to the organization by enacting policies and
procedures that allow for employee choice and both selection and retention in
the organization
Leadership
development
Leadership
development simply means identifying potential leadership talent,
developing both the externally observable skills and internally nourished
personal character of that talent, and providing an appropriately challenging
outlet for individual development within the leadership ranks of the
organization.
Exit
strategy
An exit strategy is
a means of leaving one's current situation, either after a predetermined
objective has been achieved, justifying premises or decision makers for any
given operational planning changed substantially, or as a strategy to mitigate
imminent or possible failure.
Contingency plan
A contingency plan is a plan
devised for an outcome other than in the usual (expected) plan. It is often
used for risk
management for an exceptional
risk that, though unlikely, would have catastrophic consequences. Contingency
plans are often devised by governments or businesses.
Succession plan
Succession
plan enables continuity in the organisation should the current
leadership/management leave the organisation for various reasons. Succession
planning also ensures smooth handover of power, creation, sharing and retention
of knowledge if experts leave the organization
Managerial succession
planning
Managerial
succession planning as the process of identifying and developing internal
people with the potential key to fill leadership positions in the company.
Organizational
performance
Organizational performance comprises the
actual output or results of an organization as measured against
its intended outputs (or goals and objectives).
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