Succession Planning And Organization Performance In Nzoia Sugar Company, Kenya

Abstract

Traditionally organizations have used senior executives in identifying and grooming employees of their own choice for future roles. In the modern times, however, succession planning has emerged in developed countries as a major determinant of business success. Little information exists on how firms are integrating it in organization performance in Kenya. The study therefore sought to examine the effect of succession planning on organization performance within public organizations using Nzoia Sugar Company as a case study. The objectives of the study were to examine how succession planning contributes to organizations performance, identify the factors considered in identifying potential successors , establish the programmes the company introduced to develop potential successors in organizations, document the challenges faced in using succession planning and to explore ways of improving succession planning in Kenyan corporations. It was based on the hypothesis that there is no relationship between succession planning and organization performance and programmes introduced to develop skills of potential successors contribute to organization performance. The study was guided by Weiner attribution theory .It was based on descriptive research design for both unionized employees and managers. Stratified sampling was used on a sample of 204 representing a population of both unionized employees and management. Data was collected through questionnaires and was analyzed descriptively using statistical packages for social sciences. Descriptive statistics included the use of frequencies and percentages based on the research questions , objectives and hypothesis. The results showed that succession planning affects organization performance, and it should be the concern of all departments in the organization. The study will be useful in widening the knowledge base on succession planning and its influence on the performance of corporations. To the employees it will enable them to develop their careers and thus experience personal growth and development. The study recommended that every organization should include succession planning in the strategic plan. The employees to be encouraged to further their education level and all employees to be sensitized about succession planning. Further research can be done on succession planning based on comparative study, mainstreaming gender in succession planning and succession planning in private business, to acquire additional information, which may not have been discovered during the present research .The study therefore concluded that succession planning is an important corporate strategy which every company should embrace in order to realize business success.