LSUS MHA 702 Ch 10 latest actual questions with accurate expert solutions + rationales ( LATEST RELEASE )

Succession Planning

It is important to focus on ___________ for the most senior executive position, a chief executive officer, (CEO).

managerial positions

Succession planning is useful for other...

career planning

Succession plans for middle managers are often more accurately described by the term...

Succession Planning

Process that prepares a single, designated successor

Career Planning

Process that prepares several candidates for a single position

proactive; continuity

Succession planning is a _______ approach to ensuring _____ of leadership.

5-10 years

A substantial number of senior organizational leaders are expected to retire over the next...

uneasiness; negatively

When a successor is not immediately apparent, ----- is intensified and may _____ affect organizational performance.

smoother leadership transitions

Organizations with succession plans are more likely to have...

to chance

Organizations without succession plans are essentially leaving the development of their future leaders...

time; effort

Considerable ----- & ----- may be required for outside persons to understand organizations.

current CEO

The ----- is responsible for initiating succession planning.

Board of Directors

The ----- is ultimately responsible for appointing a successor.

4 years

Experts recommend that succession planning should begin _____ before a CEO is expected to step down.

HR department; selecting

Ultimately, the ----- will have responsibility for managing the succession planning process (NOT ----- the new CEO!)

1. eliminating executive search fees; 2. maintaining leadership continuity when inside person is groomed & promoted

How does succession planning save organizations money?

50%

What percentage of a new CEOs salary does is often cost for executive search fees?

Grooming an internal person to take over

What is traditionally considered a key element of for-profit sector succession planning?

6 to 12 months

How long does it usually require an outside hired CEO to regain the level that existed prior to the replacement?

1. should be a board-driven, collaborative process

2. should be 1 or the boards top 2-3 most important tasks

3. selecting a successor must be collaborative effort that includes current CEO, but is essential the governing board has final accountability

4. Governing board/CEO should communicate openly about the process

5. Agreements/promises made by the board must be communicated to the succeeding leadership & honored

What are the 5 Principles of Succession Planning?

continuous

CEO succession planning must be a -----process.

available, groomed, and ready to step in.

A successor should always be...

assignments; experiences

By identifying a specific successor for the CEO, significant development ----- can be arranged to ensure appropriate ----- are encountered.

critical

Feedback loops are...

goals; timelines

Specific ----- & ----- should be created & monitored.

created; monitored

Specific goals & timelines should be ----- & -----.

as planned

It is important for the transition to occur...

exit strategy

A clear ----- should be developed for the outgoing CEO.

post-succession assessment

Once the transition has taken place, a ----- should be conducted to evaluate the process.

what worked & what did not work

HR should review the overall effectiveness of the program to help understand what?

significant developmental assignments

Succession planning should begin to identify a successor early in the potential successor's career to allow opportunities for what?

To allow needed skills to be acquired and honed

Why are significant developmental assignments important?

diverse; organization; departments; operations

Developmental tasks should be sufficiently -----to expose the successor to the entire ----- & its ----- & -----.

Grooming an inside person

What helps an organization ensure that institutional memories will be preserved?

CEOs who have been personally groomed

Who usually personally supports the process of being groomed.

Inside candidates

Who may have connections to social networks & psychological ties within an organization that can complicate efforts to change organizational culture if changes are needed?

social networks; psychological ties; change

Inside candidates may have connections to ----- & ----- within an organization that can complicate efforts to ----- organizational culture if changes are needed.

inappropriate or limited experiences

Potential pitfalls to inside candidates are...

credibility; damaged; regime

In some situations, the ----- of an outgoing CEO & management team (which might include the designated successor) is so ----- that only bringing in an entire new ----- can sweep an organization clean.

organization "taking a fall"; scandals; mismanagement; failed take over

What type of situations are likely to require a new regime?

Assessing their inside bench strength

What is it called when an organization inventories potential employees?

consider hiring outside person

What should an organization do if there are no suitable candidates with the necessary knowledge, skills, & abilities?

at least 18 months up to 5 years in advance of their CEO leaving

How long ahead of time should an organization consider hiring an outside person if there is no one available from the inside?

maintaining 2 individuals with high salaries over an extended amount of time (CEO & replacement)

Succession planning can become costly due to what?

mature

Succession planning requires a "-----" CEO.

threatened

Many CEOs might feel ----- by a trained successor standing in the wings, poised to take over at any misstep of the current CEO or at the whim of the Board of Directors.

time; thought; daunting

Developing a succession plan require ----- & ----- but is not a ----- task.

being swamped by more immediate & pressing issues.

Organizations without succession plans often complain of....

experience

Governing boards often lack ----- with succession planning.

fail

Governing boards ----- to see how it benefits their organization.

succession planning hastens a CEOs departure.

Governing boards erroneously believe that....

lose poser; lame-duck leaders

Some CEOs fear that they will ----- & become ----- once a succession plan is adopted.

strengthened; leader

This perception could be ----- if the succession plan names the next -----.

talk about leadership change

Some CEOs fear that if they...., their governing board will think they are planning to leave soon.

Governing boards; they do not want to imply that they have lost confidence in their CEO.

....., on the other hand, may not want to talk about succession planning because .....

uncomfortable; essential strategic goal

In any case, CEOs & governing boards must understand that while succession planning and implementation can be -----, it should be considered an ------ that is important for the continued success of their organization.

Leadership

What is critical for the long-term effectiveness of contemporary organizations?

their governing boards believe that an outside person must be recruited.

Some organizations avoid succession planning because...

risky; expensive

Relying on replacing an outgoing CEO with an outside person can be ----- & -----.

Excessive reliance on recruiting an outside person

What can stifle promising inside candidates?

self-imposed fears & concerns

What are many of the barriers to succession planning composed of?

Provide more & better knowledge about the practice of succession planning

How can HR managers mitigate most existing fears & concerns?

1. clearly defined qualifications

2. established timeframe for transition

3. & is tailored to an organization's unique needs

What 3 things does an appropriate successor plan include?

Take time & effort to create & implement a succession plan

How can an organization maintain their momentum & direction during a leadership transition?

How their organization fares after they leave

What is a significant measure of a CEO after they leave?

A gratifying & memorable legacy remains

What can embracing succession planning & grooming a successor help to ensure?

2,500 largest; $1.8 billion; following

A recent survey of the world's ----- public companies revealed that of those that found themselves scrambling to find replacements for departing CEOs lost on average, $----- in shareholder value during the year ----- the old CEOs departure.

15%; half

Other literature points out that -----% of large companies will be in search of a CEO this year and only ----- have a designated successor or even a succession plan in place.

30-50%

What percentage of new CEOs fail within the 1st 15 months of landing a new job?

They were not adequately prepared (groomed) to succeed

Why do new CEOs tend to fail so quickly?