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CHAPTER 7 Succession Management Discussion Questions 1. Ganong Bros., a manufacturer of candy and chocolates, is based in St. Stephen, New Brunswick. In 2008, for the first time in its 135-year history, an outsider succeeded a member of the Ganong family as president of the company. (Two children who work in the business were deemed “not ready.”) This decision is a result of two years of succession planning by the Ganong board, which is dominated by outsiders. What are the advantages and limitations of choosing an outsider to head the company? Answer: Advantages: • Know people and relationships. • Know clients and product knowledge. • Have automatic authority. Disadvantages • May not have recent education. • May have poor existing relations with staff/clients. • May want to stick with status quo related to products/processes/staff. For questions to consider, refer to RBC, “How to Succeed with Business Succession Planning: Your Guide to Transitioning Your Business” at http://www.brantford.ca/Summer%20Company%20Youth%20Program%20%20Documents/Business%20Succession%20Planning.pdf 2. About half of all Canadian companies offer paid leave for volunteering, ranging from one day to two weeks annually. According to Mario Paron, KPMG’s chief HR officer, “Employees return with a fresh perspective—new skills learned in a nontraditional environment and learning and sensitivity in dealing with people from different backgrounds, that is invaluable when they return to work.” Do you think that volunteering is a good management developmental tool? Why or why not? Answer: Yes, volunteering is an effective management development tool. It offers the following benefits: • Employees feel meaningful when they have the opportunity to help people, and they will appreciate the opportunity given by their employer to do this on paid time. • Employees will return to work with the satisfaction of being appreciated for their uncommon skills while volunteering. • Employees may develop ongoing relationships and service opportunities that are motivating. • Employees learn new skills, and develop self-awareness, problem-solving skills, and the ability to encourage others. No, some organizations may not want to discrupt business hours with emploees volunteering for numerous causes. The companies may focus on corporate-wide causes, possibly offering the time of specific employees. 3. This chapter has focused mainly on managers, implying that they are the key talent that needs to be managed. However, there are people who believe that the organization’s most critical employees are not those who make the highest salary, but those who have the most impact on the customer: e.g., the couriers at FedEx and the street sweepers at Walt Disney World. Describe why these people should be considered key talent, and what succession management plans could be used for them. Answer: Employees who are on the front-line servicing customers, e.g., at FedEx and Disney, can be considered to be key talent in an organization. Since they are highly visible, they must be motivated to do their job well despite being paid low rates for some tedious tasks. They are frequently in contact with customers; therefore, they need a good attitudes to be patient, answer questions, and be good representatives for the organization. Considering frontline employees, such as couriers at FedEx and street sweepers at Walt Disney World, as key talent is essential for several reasons: 1. Direct Impact on Customer Experience: Frontline employees are often the face of the organization and have direct interactions with customers. Their performance and attitude significantly influence customer satisfaction, loyalty, and ultimately, the organization's reputation and success. 2. Brand Ambassadors: Frontline employees embody the organization's values, mission, and brand image through their daily interactions with customers. They have the power to enhance or detract from the brand perception, making them critical assets in maintaining brand consistency and integrity. 3. Operational Efficiency: Frontline employees play a vital role in ensuring smooth operations and service delivery. Their efficiency, reliability, and problem-solving abilities contribute to the overall efficiency of business processes and customer service standards. 4. Innovation and Improvement: Frontline employees often have valuable insights into customer needs, preferences, and pain points. Empowering them to provide feedback and suggestions for improvement can lead to innovation and continuous enhancement of products, services, and processes. Succession management plans for frontline employees can include the following strategies: 1. Identifying High-Potential Talent: Implementing processes to identify frontline employees with high potential for growth and leadership roles. This could involve performance evaluations, assessments of customer satisfaction ratings, and feedback from supervisors and peers. 2. Training and Development Programs: Offering training and development opportunities to enhance frontline employees' skills, knowledge, and leadership capabilities. This could include customer service training, leadership workshops, and cross-functional training to prepare them for future roles. 3. Career Pathing and Advancement Opportunities: Creating clear career paths and advancement opportunities for frontline employees to progress within the organization. This could involve implementing promotion policies, job rotation programs, and mentorship initiatives to support their career development. 4. Succession Planning: Developing contingency plans to ensure seamless transitions in key frontline roles. This could involve identifying and grooming potential successors, cross-training employees to perform multiple roles, and establishing backup plans for unexpected vacancies. 5. Recognition and Rewards: Implementing recognition and rewards programs to acknowledge and incentivize frontline employees' contributions and achievements. This could include performance-based bonuses, employee of the month awards, and public recognition for exceptional service. By recognizing frontline employees as key talent and implementing succession management plans tailored to their needs, organizations can strengthen their customer-centric focus, enhance operational excellence, and drive long-term success and sustainability. SUGGESTED ANSWERS TO EXERCISES 1. How could succession management have been effectively implemented in the case of Lee Ki Chung, the employee with cancer, to ensure continuity of operations and facilitate a smooth transition for her replacement? Answer: Succession management would be effective in the case of Lee Ki Chung, the employee with cancer. A replacement could have been trained while the individual was on the job. Also, either the incumbent or another individual could document the job procedures for future use. While learning the job from Lee Ki Chung the replacement could have been taking courses that would help adjust to her new role. 2. How can succession management be effectively utilized in the scenario where the vice-president is expected to replace the president while simultaneously dealing with personal challenges, such as a child with a drug problem and marriage difficulties, to ensure a smooth transition of leadership and mitigate the impact of additional stress on the vice-president? Answer: Succession management in this situation would help with the vice-president who is to replace the president while dealing with a child with a drug problem and marriage difficulties. While the vice-president could learn about the job over time he will also be managing some of his own job. He and the president could evaluate if he was a good choice as a replacement for the president. If not, it might be possible to divide some tasks so that the vice-president is not taking on all the responsibilities at the same time while managing family issues. 3. How can a succession management program at Hi Tech Corp be structured to provide employees with opportunities to explore future projects and positions, assess their potential for higher-level roles, and receive relevant training, ultimately fostering employee loyalty and engagement within the organization? Answer: With a succession management program, Hi Tech Corp staff would be given opportunities to consider the types of projects and positions they would like to have in the future. Employees would know if they had the potential of higher-level positions in the organization. Training would be offered relevant to the staff and the organization, which tends to increase loyalty of employees. CASE STUDY 1: THE PEOPLE DEVELOPMENT FRAMEWORK AT FORD OF CANADA Question Analyze the effectiveness of Ford’s succession management program. Include in your report the strengths and weaknesses of the model and suggestions for increasing its effectiveness. Answer: Effectiveness of Ford’s succession management program linked to four major factors: 1. Impact of external factors and world events. 2. Changing marketplace. 3. Workforce demographics. 4. Review of operational plans and alignment with long-term goals. People equation―Having the right people in the right positions. • Personnel development committees (PDCs) match employee capabilities to key positions. • T-charts visually depict qualified employees and those with future potential. • Employee engagement, participation, and personal ownership of career plans. • Leadership Development Employee Profile. • Individual development plan. Conclusions: • The Ford succession management plan outlined above has all but one of the characteristics and steps outlined according to the textbook and should therefore be highly effective. • The step that is missing is the monitoring of the succession plan. This is a critical oversight. Strengths/Weaknesses • The strengths of the program are the significant amount of input from the employee and collaboration with supervisors and committees. The financial investment in employees is substantial. • The weaknesses include the lack of environmental monitoring and determining that fewer customers want to buy Ford products. Succession management programs are meaningless in retrospect if the viability of the company is being compromised and top executives do not notice. The financial investments Ford made with its employees were too grandiose, and it was paying its employees elevated wages beyond what the company could afford due to collective agreements. Hence, the adaptability of the company was compromised because of its size and contracts. Ford could not quickly adapt to alter its strategy with existing employees to meet rapid changes in the automobile industry. The company exhibited elitism and selection bias and was caught up in unpredictable futures (T-charts). CASE STUDY 2: EXECUTIVE SUCCESSION MANAGEMENT PROGRAM AT EMEND MANAGEMENT CONSULTING Questions 1. What steps might you include or remove from this process? Answer: • One important step that needs to be considered is the participation of the managers. • The new approach to succession management needs to be participatory rather than top-down and bureaucratic. • More transparent policies, authority, responsibility, and accountabilities need to be explained upfront. • Another step that needs consideration is the constant monitoring and updating of all the succession management information using an HRMS. • A good HRMS system can have most of these steps and information programmed into the database so that they can be performed efficiently. • The final step that needs consideration is a rationalization of why external parties like Emend are necessary at all if the decision makers are being trained and educated on the succession process. • It would be important to know the current development activities and to determine their effectiveness. 2. What additional techniques might be used to assess talent? Answer: • Succession/replacement tables. • Succession/replacement charts. • Management inventory. • More monitoring with lag measures. • It would be important in light of this chapter to know the current development activities. 3. How would this process apply to non-executive succession planning? Answer: • Most of this process could be applied to non-executive succession planning as it relates to the job levels and the metrics that are being gathered. • For non-executives, the process of succession planning would be succession management but would be less complex than that for executive talent. CHAPTER 8 Information Technology for HR Planning Discussion Questions 1. In Canada, air traffic control is managed by NAV Canada, which has an international reputation for the management of air traffic controllers. If you were a manager, what data would you find useful to schedule the shifts for air traffic controllers? Answer: The information that NAV Canada might need in order to schedule air traffic controllers includes: • Home location • Preferred shifts • Seniority • Alternate locations possible for work • Experience level • Special days off, i.e., medical appointments, vacations, personal days • Date of birth 2. Databases used for HR management and planning contain a wide variety of personal and sensitive data that require the organization to set security, privacy, and usage policies. What legislative and ethical requirements of data security need to be considered? Answer: • To review privacy legislation, go to https://www.priv.gc.ca/en/privacy-topics/privacy-at-work/02_05_d_67_tips/ • Security of Employee Information. The PIPEDA (the Personal Information Protection and Electronic Documents Act) sets out 10 privacy principles for the collection, use, disclosure, and retention of personal information. Refer to http://hrcouncil.ca/hr-toolkit/employee-records.cfm When managing HR databases containing personal and sensitive data, organizations must adhere to various legislative and ethical requirements to ensure data security, privacy, and ethical usage. Here are some key considerations: 1. Legislative Requirements: a. Data Protection Laws: Compliance with data protection laws such as the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in California, and similar regulations in other jurisdictions is essential. These laws govern the collection, processing, storage, and transfer of personal data and impose obligations on organizations to protect individuals' privacy rights. b. Data Breach Notification Laws: Many jurisdictions have laws requiring organizations to promptly notify individuals and regulatory authorities in the event of a data breach involving personal information. Organizations must have procedures in place to detect, respond to, and mitigate data breaches to comply with these requirements. c. Privacy Laws: Beyond data protection laws, specific privacy laws may apply to certain types of personal information, such as health information (e.g., Health Insurance Portability and Accountability Act, or HIPAA) or financial information (e.g., Payment Card Industry Data Security Standard, or PCI DSS). Organizations must ensure compliance with these laws when handling sensitive personal data. d. Labor and Employment Laws: Some labor and employment laws govern the collection and use of employee information, such as the Fair Labor Standards Act (FLSA) in the United States. These laws may impose restrictions on the types of data that can be collected, how it can be used, and how long it must be retained. 2. Ethical Requirements: a. Transparency and Consent: Organizations should be transparent with employees about the types of data collected, how it will be used, and with whom it may be shared. Obtaining explicit consent from individuals before collecting or processing their personal information is an ethical best practice. b. Data Minimization: Collecting only the minimum amount of personal data necessary for the intended purpose is an ethical principle. Organizations should avoid unnecessary data collection and ensure that any data collected is relevant, accurate, and up-to-date. c. Security Safeguards: Implementing robust security measures to protect HR databases from unauthorized access, data breaches, and cyber threats is an ethical imperative. This includes encryption, access controls, regular security assessments, and employee training on data security best practices. d. Fair Treatment: Ensuring fairness and equity in the use of HR data is crucial. Organizations should avoid discriminatory practices based on personal characteristics such as race, gender, age, or disability when making HR decisions. e. Respect for Employee Rights: Respecting employees' rights to privacy and autonomy is essential. Organizations should uphold individuals' rights to access, rectify, or delete their personal data and should not use HR data in ways that infringe upon employees' rights or dignity. By considering these legislative and ethical requirements, organizations can establish comprehensive policies and procedures for managing HR databases responsibly, safeguarding individuals' privacy rights, and promoting trust and confidence among employees. 3. Big data include structured and unstructured types of data. Unstructured data can include information from photo or video files, email, etc. Structured data can be anything that can be easily coded to include in a database or spreadsheet, including temperature measures and movement counters. List some of the data that companies might have captured about you as a customer or an employee over the past few days. Answer: 1. Customer Data: • Purchase history: Records of products or services you've bought online or in-store. • Website interactions: Data on pages visited, time spent on site, and actions taken (e.g., clicks, searches). • Location data: Information on your physical whereabouts, collected through GPS, Wi-Fi, or IP address. • Social media interactions: Engagement with company social media accounts, including likes, comments, and shares. • Customer service interactions: Records of inquiries, complaints, or feedback submitted through phone calls, emails, or chatbots. • Demographic information: Details such as age, gender, income, and marital status, inferred from various sources. • Behavioral data: Patterns of behavior, preferences, and interests based on online activities and purchase behaviors. 2. Employee Data: • Personal information: Name, address, contact details, social security number, date of birth, and emergency contacts. • Employment history: Details of previous positions held, dates of employment, and job titles. • Performance evaluations: Assessments of job performance, including ratings, feedback, and goals. • Training records: History of completed training courses, certifications, and professional development activities. • Attendance and timekeeping: Records of work hours, absences, tardiness, and leave requests. • Salary and compensation: Details of salary, bonuses, benefits, and deductions. • Health and wellness data: Information on medical conditions, health insurance coverage, and participation in wellness programs. • Communication records: Emails, instant messages, and other communications exchanged within the organization. • Access logs: Records of system and facility access, including login times, locations, and activities. It's important for companies to handle this data responsibly, ensuring compliance with privacy regulations, obtaining consent where necessary, and implementing robust security measures to protect individuals' sensitive information. SUGGESTED ANSWERS TO EXERCISES 1. To influence customers to buy more items, store managers can review and act upon the following questions: 1. Which salesperson sells multiple items frequently? 2. What training is needed on product knowledge? 3. What training is needed on selling, including techniques? Answer: In order to influence customers to buy more items the store can train sales staff to ask the following when they are on the floor with customers: • “Can I help you find something?” • “By the way, we have a special sale on today for ….” • “In case you are not aware, we have a Buy 3, Get 1 Free sale today” • “Would you like me to put that item in the fitting room while you continue looking?” • “Are you interested in pants to go with that?” Some of these questions can be asked while the customer is at the cash desk instead. Other information that store managers can review and act upon would be: • Which salesperson sells multiple items frequently? • What training is needed on product knowledge? • What training is needed on selling including techniques? 2. What are some key concepts and metrics discussed in the section on "HR Metrics and Workforce Analytics," and how can they be applied in practice to improve HR management strategies? Answer: Some key concepts and metrics discussed in the section on "HR Metrics and Workforce Analytics" include: 1. Employee Turnover Rate: This metric measures the percentage of employees who leave the organization over a certain period. A high turnover rate can indicate issues with employee satisfaction, engagement, or organizational culture. 2. Cost per Hire: This metric calculates the average cost incurred by the organization to fill a vacant position. It includes expenses such as recruitment, advertising, and training. 3. Time to Fill: This metric measures the average time taken to fill a vacant position. A long time to fill can indicate inefficiencies in the recruitment process. 4. Absenteeism Rate: This metric measures the percentage of employees who are absent from work over a certain period. High absenteeism rates can indicate issues with employee health, morale, or job satisfaction. 5. Revenue per Employee: This metric calculates the amount of revenue generated per employee. It can help organizations assess the productivity and efficiency of their workforce. 6. HR-to-employee Ratio: This metric compares the number of HR staff to the total number of employees. It can help organizations assess the efficiency of their HR department and identify areas for improvement. These metrics can be applied in practice to improve HR management strategies by providing valuable insights into workforce trends, identifying areas for improvement, and measuring the effectiveness of HR initiatives. For example, if the turnover rate is high, HR managers can investigate the reasons behind the turnover and take steps to improve employee retention. Similarly, if the cost per hire is high, HR managers can look for ways to streamline the recruitment process and reduce costs. CASE STUDY Sustaining Talent with Strategic Workforce Planning Software at Energy Resources Conservation Board Strategic workforce planning is one example of how the HR function might be improved by information technology. In this case, we see that software assists with the ERCB being able to meet the needs of the future. How might IT be leveraged in other areas of HR for the ERCB and perhaps other organizations? Answer: Software applications that can help this company better manage some of the elements of its HR strategy include the following: • Use enterprise solutions such as SAP and PeopleSoft. • Use software to post openings for jobs in high-growth areas, e.g., Pathfinder. • Online databases that allow employees to enter their résumés online, e.g., I Profiler―enabling software to capture and store information about an employee’s work and educational experience, skills and technical qualifications, and career aspirations. • Performance management software (e.g., multiple-source or 360º feedback performance assessments). • Software that helps individuals realize their career plans, e.g., SkillView. • Reporting functions in the software allow employees to record and track their competencies and perform comparative analyses against their job as well as other positions in the organization. The software also offers a pre-populated skills dictionary containing skills data for corporate functions and vertical industries • Software like SkillsSoft provides computer-based training modules in leadership and supervision to assist individuals who want to develop their management skills. Solution Manual for Strategic Human Resources Planning Monica Belcourt 9780176798086, 9780176570309

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