Effect Of Succession Planning On Performance Of Selected Livestock Products Based Corporate Firms In Kenya

Abstract

For organizations to survive and excel in today’s highly dynamic and competitive business environment, they must have a dynamic and high potential group of employees at all organizational levels. Succession planning seeks to enable organizations develop general competencies and leadership potential at all levels of the organization for their survival and growth. Senior management staff development is becoming an increasingly critical and strategic issue for most of the organizations owing to the current highly dynamic operating environment. However, despite the fact that most of the executives are increasingly aware of the need to focus on succession planning, very few are actively developing key organizational staff as part of their business strategy. This study sought to examine the effect of succession planning on performance of selected livestock products based corporate firms in Kenya. Specifically, the study explored the effects of turnover of high potential staff, internal versus external replacements and bench strength readiness on the performance of selected livestock products based corporate firms in Kenya. The study adopted a descriptive research design. The target population of the study was 300 selected livestock products based corporate firms in Kenya. The study employed both stratified and simple random sampling techniques in sample selection. The study sample size was 30 firms. In data analysis, quantitative data was analyzed using descriptive statistics through the use of frequencies, percentages, mean and standard deviation using the Statistical Package for Social Sciences (SPSS, version 23.0). The study also conducted regression and correlation analysis to test the relationship between the study variables. The study findings revealed a significant negative relationship (p = -0.831) between turnover of high potential staff and the firms’ organizational performance; a significant positive relationship (p = 0.712) between internal versus external replacements and the firms’ organizational performance and a significant positive relationship (p = 0.774) between bench strength readiness and the firms’ organizational performance. The study concluded that turnover of high potential staff as a succession planning construct negatively impacted on the organizational performance of the selected livestock products based corporate firms in Kenya over the 5 year period. The study also concluded that internal versus external replacements and bench strength readiness as succession planning constructs positively impacted on the organizational performance of the selected livestock products based corporate firms in Kenya over the 5 year period. The study recommends that the selected livestock products based corporate firms in Kenya should enhance their talent retention strategies in order to be able to engage their core management staff for the long term. The study recommends that the selected livestock products based corporate firms in Kenya should institute strong internal career progression policies that offer existing competent organizational personnel the opportunity to take up managerial positions that may arise within the organization. The study recommends that the selected livestock products based corporate firms in Kenya should support the continuous development of its core staff in terms of managerial skills and competence in order to ensure that they have an adequate human resource pool ready for promotion