Succession Planning Essay

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Succession Planning in Family Firms: Tata Group Personal Competence & Capability Building Systems (PCCBS) Report submitted in partial fulfillment of the course PCCBS (2012-13) To Instructor: Prof. Gurunathan Academic Associate: Miss. Shivali Rathore By Prashant Yadav Nakul Gulati Richa Singh Ashish Patira Vishrut Awasthi Tejesh. J (Section C – Group 12) March 14th, 2013 Indian Institute of Management, Ahmedabad Table of Contents Contents Introduction to Succession Planning 3 Succession Planning 3 Motivators for Succession Planning 5 Succession Planning Process 6 Desirable Traits in a CEO 8 Case Study – Succession Plan of Tata Group 10 Tata 10 Talent Management at Tata Group 10 RATAN TATA to CYRUS MISTRY 11 Evaluations & Recommendations 14 1. Introduction to Succession Planning 1.1 Succession Planning A family firm is a business entity that two or more members of the same family own or operate together or in succession. In the context of family firms, succession planning is defined as the deliberate and formal process that facilitates the transfer of management control from one family member to another. In case of family forms, internal hiring is crucial for filling up the organization’s top positions. In order to do this, family firms need to have a succession plan – the on-going process of systematic identification, assessment and development of organizational leadership to enhance performance. Successful succession planning requires 3 steps – * Identifying Key Needs: Based on a company’s strategic plans, the top management and HR director identifies what the company’s future key needs will be and formulate job descriptions and specifications for them. * Developing Internal Candidates: Once the future key position needs have been identified, management turns to developing

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