CHAPTER 1: INTRODUCTION 1.0 Chapter Overview - DSpace@UM

employees. It also indicates that there is need for Malaysian corporate sectors to engagean effective succession planning and talent management program as their employeeretention strategy in order to maintain continuous organizational growth and competitiveadvantage.Wallum (1993) conducts a survey and concludes that succession planning helpsorganization with internal sourcing; reduces attrition of high-fliers; allows for morerealistic counseling and planning; and prepares candidates in advance for seniorappointment.Therefore, the major purpose of this study is to empirically investigate the use ofsuccession planning and management program among private sector firms in Malaysiaand explore its common practices, policy and process dimensions. Then, the impact ofsuccession planning program on organizational effectiveness/outcomes will be examined.1.3 Importance Of The StudySuccession plans form a vital informational input into the day-to-day decision making inbusiness organizations. They are also important tool for developing the managementexecutives who will implement the organization’s business strategy and achieve itsorganizational objectives (Huang, 2001). Succession management can lower employeeturnover rates, improve staff morale, and place the most qualified candidates in keypositions (Johnson, Costa, Marshall, Moran, & Henderson, 1994). Firms that fail to treat6