AN ASSESSMENT OF SUCCESSION PLANNING PROGRAM: THE CASE OF COMMERCIAL BANK OF ETHIOPIA IN ADDIS ABABA

Abstract

Succession planning program is a deliberate and systematic effort by an organization to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future. The objective of this research was to identifying if succession planning program implemented at CBE fulfilled the characters of an effective succession planning program, identify its outcomes and identify the major challenges to implement SP in CBE. Using a descriptive research design, the research undertook a survey of managers involved in its implementation at Branches in Addis Ababa. The survey instrument was developed based on Ley (2002) framework was used to develop seven of the elements of an effective succession planning program as well as Rothwell (2010) guideline to identify outcomes of succession planning program. Descriptive and inferential statistics was used to analyze the data gathered from 138 responses. The research has found that, in terms of mean values, ‘top management participation & support’, ‘part of strategic and work force planning’, ‘dedicated responsibility’ and ‘formal professional development opportunities’ had means 3.86, 3.76, 3.74 and 3.71 suggesting that participants tend to agree with the presence of these attributes in CBE’s SP program. Concerning the outcomes of SP program, ‘satisfaction of program participants’ was 3.65 slightly suggesting that participants agree with the satisfaction of SP participants while ‘effective placement’ had a mean of 3.07 indicating participants neutral opinion on this point. The correlation analysis showed a positive correlation with the participants opinion of presence of elements (attributes) of an effective SP program and their opinion of the outcome of SP at CBE. The multiple regression model also indicated that only four of the seven predictors (Extends to all levels of organization, Part of strategic and work force planning, Focused on individual attention and Dedicated responsibility) were able to statistically significant predictors of outcomes of an SP program. The two major challenges to SP program at CBE were identified as ‘inability to create pool of candidates’ and ‘lack of formal process’ while participants didn’t think ‘lack of focus and follow-up’ was a challenge to SP program at CBE. It was therefore recommended that CBE should continuously assess positions and capabilities required for them so that the SP program assures available resources to fill future requirements. Assuring individual's carrier aspirations are realized through the SP program creating satisfaction and commitment between the bank and its employees should be considered. the type and quality of development opportunities provided should also assure the participants capabilities are acceptable so that effective placement can be improved.