Analysis of succession planning practices in Pride Microfinance Limited

Abstract

Organizations of all sizes and industries often fail at making deliberate efforts to transfer management, yet it is critical for survival. This study attempts to analyze the succession planning practices in Pride Microfinance Limited. The objectives of the study were; to analyze the succession planning practices in Pride Microfinance Limited; to identify the challenges of implementing succession planning practices in Pride Microfinance Limited; to develop strategies to improve succession planning practices in Pride Microfinance Limited. The succession planning practices that were relevant to this study include talent management; mentoring; career management; performance management; training and development; top management support; human resource planning and strategic alignment.

A cross sectional survey design was adopted, where quantitative data was collected with the aid of the structured self-administered questionnaires from a sample of 265 employees (specifically Managers, Banking officers and Administrative staff) in Pride Microfinance Limited using simple random and stratified sampling. Of these, 191 were usable which indicates a 72% response rate. The data collected was captured and analyzed for descriptive analysis using SPSS.

The findings of the study revealed the existing succession planning practices in Pride Microfinance Limited include talent management; mentoring; career management; performance management; training and development and top management support. However, the challenges in implementing succession planning practices also exist in the area of strategic alignment and human resource planning. For instance; the succession plans were not aligned to the strategic goals, individual development plans and business objectives; having no programs to avoid manpower deficits and surpluses; failure to communicate changes in human policies to all employees.

The study recommends that Pride Microfinance Limited puts in place strategies such as, aligning succession plans to the strategic goals, individual development plans; putting in place programs to avoid manpower deficits and surpluses; ensuring that changes in human policies are communicated to all employees.