The Role of Succession Planning in Private Organisations

Abstract

The present research aims to examine the importance of succession planning in the improvement of management effectiveness in various contexts. Paying attention to leadership continuity as one of the key aspects of strategic HRM, the impact and effectiveness of the well-developed succession plans are considered with regard to organizational stability and performance. This paper used the cross-sectional survey design where questionnaires were filled by 120 mid- to senior-level managers in the Human Resource, Operation, and Strategic Planning departments of several organizations in India. In the current study, statistical data were analyzed using the Social Package Statistical System (SPSS 28), descriptive statistics, correlation matrices, regression analysis, moderation-mediation tests were used. This study established positive correlation between succession planning and management effectiveness, coefficient correlation being 0.58, p < 0.001, and subsequent regression analysis conducted test that succession planning explained 18% of the variance in management outcomes with a significance value of 0.43. Employee engagement enhances the proportion of the explained variance from 33 percent to 46 percent, while the organizational culture of moderating the effects means that the predictive relation is stronger under certain conditions. These perspectives indicate that managerial competence is not only built by succession planning but also dynamism is created for the organization. The paper enriches the strategic HR field and provides useful recommendations for leadership succession procedures.