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148 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT Succession Planning Hiring from within is particularly important when it involves filling the employer s top positions. Doing so requires succession planning the ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance. 30 About 36% of employers have formal succession planning programs. 31 As in IBM s search to eventually replace its CEO (outlined earlier in this chapter), succession planning should conform to basic talent management practices. In particular, the key is to profile the competencies that the firm s evolving strategy will require the new CEO to have; then use that profile to formulate an integrated development/appraisal/selection package for potential candidates. Succession planning entails three steps: identify key needs, develop inside candidates, and assess and choose those who will fill the key positions. IDENTIFY KEY NEEDS First, based on the company s strategic and business plans, top management and the HR director identify what the company s future key position needs will be. Matters to address in this early stage include defining key positions, defining high potentials , enlisting top management support, and reviewing the company s current talent. (Thus, plans to expand abroad may suggest bulking up the international division. 32 ) DEVELOP INSIDE CANDIDATES After identifying future key positions, management turns to creating candidates for these jobs. Creating means providing the inside or outside candidates you identify with the developmental experiences they require to be viable candidates. Employers develop high-potential employees through internal training and cross-functional experiences, job rotation, external training, and global/regional assignments. 33 ASSESS AND CHOOSE Finally, succession planning requires assessing these candidates and selecting those who will actually fill the key positions. 34 Improving Productivity Through HRIS Succession and Talent Planning Systems More large employers use software to facilitate succession planning and talent management. These systems Capture and search for information about employee competencies, skills, certifications, and experience . . . [and] Assess employees on key areas of leadership potential, job performance, and risk of leaving; Target employees for future roles. 35 As the user of one such system said, The [SumTotal] platform allows us to track and assess the talent pool and promote people within the company. Our latest metrics show that 75% of key openings are fulfilled by internal candidates. The succession module helps us to identify who the next senior managers could be and build development plans to help them achieve their potential. 36 Succession planning is an integral part of talent management. For example, when a new president took over at Dole Food Co., Inc., Dole was highly decentralized. The new president s strategy involved improving financial performance by reducing redundancies and centralizing certain activities, including succession planning. 37 Web technology helped Dole do this. It contracted with application system providers (ASPs) to handle things like payroll management. For succession management, Dole chose software from Pilat NAI, which keeps all the data on its own servers for a monthly fee. Dole s managers access the program via the Web using a password. They fill out online résumés for themselves, including career interests, and note special considerations such as geographic restrictions. The managers also assess themselves on four competencies. Once the manager provides his or her input, the program notifies that manager s boss. The latter then assesses his or her subordinate and indicates whether the person should be promoted. This assessment and the online résumés then go automatically to the division head and the divisional HR director. Dole s senior vice president for human resources then uses the information to create career development plans for each manager, including seminars and other programs. 38
CHAPTER 5 PERSONNEL PLANNING AND RECRUITING 149 5 List and discuss the main outside sources of candidates. OUTSIDE SOURCES OF CANDIDATES Firms can t always get all the employees they need from their current staff, and sometimes they just don t want to. We ll look at the sources firms use to find outside candidates next. Recruiting via the Internet For most employers and for most jobs, Internet-based recruiting is by far the recruiting source of choice. 39 For example, restaurant chain The Cheesecake Factory gets about a third of its management applicants via the Web. Most employers recruit through their own Web sites, or use job boards. Figure 5-7 highlights some top online FIGURE 5-7 Some Top Online Recruiting Job Boards Source: www.quintcareers.com/ top_10_sites.html, accessed April 28, 2009. Used with permission of QuintCareers.com. succession planning The ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance.
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HUMAN THIRTEENTH EDITION RESOURCE M
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DEDICATED TO SAMANTHA AND TAYLOR
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C O N T E N T S Preface xxiii Ackno
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CONTENTS IX Departmental Managers S
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CONTENTS XI Recruiting Source Use a
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CONTENTS XIII PART THREE TRAINING A
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CONTENTS XV Talent Management and E
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CONTENTS XVII INCENTIVES FOR SALESP
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CONTENTS XIX HR AS A PROFIT CENTER:
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CONTENTS XXI INDIVIDUAL AND GROUP A
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P R E F A C E Human Resource Manage
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PREFACE XXV This edition again cont
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A C K N O W L E D G M E N T S Every
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LEARNING OBJECTIVES 1. Explain what
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CHAPTER 1 INTRODUCTION TO HUMAN RES
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CHAPTER 3 HUMAN RESOURCE MANAGEMENT
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CHAPTER 15 LABOR RELATIONS AND COLL
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GLOSSARY 659 It usually also involv
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GLOSSARY 661 role playing A trainin
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N A M E / O R G A N I Z A T I O N I
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NAME/ORGANIZATION INDEX 665 Carlson
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NAME/ORGANIZATION INDEX 667 F Faceb
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NAME/ORGANIZATION INDEX 671 London,
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NAME/ORGANIZATION INDEX 677 Wolkins
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SUBJECT INDEX 679 Web sites, 442 Se
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