Human Resource - an Asset for Business Profitability - Assignment Example

Student’s Name Professor’s Name Course Date of Submission Succession and Failure Introduction Succession planning management is the process through which a business identifies employees who will take over managerial positions in the company shortly. It involves training them and preparing them for their roles. A successful plan ensures the continued success of the enterprise. Such a plan should be geared towards talent management and development. Proper succession planning management is important for the present and future profitability of the company. This report will seek to understand the limitations of the succession plan adopted by Norman in the case study. The report will further recommend human resource practices that Norman and his company can adopt to ensure that the goals and objectives of the company are met. Body Question 1 However, the plan by Norman in his company fails terribly. There are several reasons behind this failure of his plan. One primary reason is the motive behind the succession plan in the first place. The need for the program emanates from the unpleasant experiences Norman had gone through when he took over as head of the company 18 years ago. Analysts of the enterprise also require the succession plan. A succession plan should come up a sound decisions made by the board and the chief executive officer having considered all relevant factors in play. The heir left the company as the Scheme was not a well thought and regarded one. It is not clear how the Aleph fits into the bigger picture with Tiverton. The role of Aleph is to identify talent and make money out of it. It is a function that Derek has performed well in the many years he has been there. It is not clear how the management experiences in Aleph would help one to manage Tiverton. There exists no link between the two entities. They are different parts of the business. Derek is in charge of one, and Norman is in charge of the other. Sean is caught there in between and cannot find where he fits. The decision to move Sean from the financial, managerial position to work in Aleph was a huge mistake. Sean is an entrepreneur, and he was well qualified for that title. He was however moved to Aleph to train him in operation and talent management. That is totally out of his line of operations, and it is evident he lack an eye or ear top talent. His contribution to Aleph has been restricted to financial advice. He fears that his limitations would cause Aleph to crumble down in case Derek retired. It is for this fact that he decided to move out to Yosemite Capital where all his partners are financial guys. Sean would be more comfortable in a financial position as opposed to talent management. The organization should nurture talent, according to their areas of specialization and their best performing areas. The talent management is to be lined up to expose and nurture the employees’ best gifts and ideas. It should not attempt to discover or look for gifts not previously present. Norman himself agrees that Sean has a real hand in making money out of company property. Sean, therefore, has no business in getting tasks outside his routine. Scouting talents is not among his greatest talents, and it is evident that he is uncomfortable in the setting. He quickly realizes that this was his place and resigns the very following day. He walks out together with his associates. Question 2 Just like Norman suggested during the Board meeting, the company needs to revise its talent nurturing and management if it aims at keeping the heirs in the company. The following discussion will expound on the kind of succession plan that the business should adopt. The first step that the organization should take in coming up with a succession plan is making a reflection. It involves analyzing what went wrong with the previous succession plan. If possible efforts to reach Sean should be done for this purpose. The information acquired in this exercise would go a long way in helping the organization come up with a new succession plan. The company adopted the succession plan as an off the shelf program. It shows that the program was not tailored to suit the particular needs and circumstances of the business. The plan adopted should be custom made for the company and not just off the shelf. The succession plan by the company appeared to give more emphasis to the grooming and development part forgetting about the selection process. It is important that a succession plan has a comprehensive selection process. That process was missing from the Tiverton succession plan. It would ensure that the candidate and heirs apparent are the most suited for the job. They would also get invaluable support and respect from other employees. With a comprehensive selection process, the company would not bet on a wrong horse (Holland, 106). It is imperative that a succession has the end in sight. The plan should give as much attention to the heirs as to the leaving employees. The program should create an exit strategy for the workers to be replaced. It should be accompanied by clear timelines and milestones. That aspect of a succession plan was apparently missing from the succession plan by Tiverton. Such a plan would identify future challenges to be faced by the heirs and how the leaving employees would assist in eliminating these challenges. An example is a relationship that Derek has with the artists. With a clear exit strategy for Derek, attempts would be made to integrate Sean into these relationships. An exit strategy is crucial in any succession plan. One of the members of the board expresses this need by stating that they expected Derek to have retired by that time. The succession plan for any business or organization has to be in line with the strategic objectives and goals of the company (Holland, 92). It is paramount that the plan is molded around the greater goals and objectives of the enterprise. With the purposes and objectives in mind, the decisions to be made in the succession plan would be easy. In Tiverton’s plan, it is not evident how Sean’s succession would promote the goals of the organization. Even worse, it is obvious that his succession in Alephs would spell doom for Tiverton as he has no hands on management of the artists. The succession plan that Tiverton should adopt is one that is all inclusive, one that is custom made for the organization and one that has a comprehensive selection process. The plan should also be in tandem with the long term goals and aspiration of the business. As the program creates an entry plan for the heirs, it should also develop an exit plan for the employees seeking to be replaced. Question 3 Human resources are the most valuable assets that a business has. As a result, measures should be put in place to ensure that the most is got from these assets. Human resource practices intend to ensure that the goals of the organization are met. One human resource practice that Tiverton should apply is offering attractive packages to potential employees. Tiverton should be the first choice of employment by prospective employees. The company should maintain a good reputation in its hiring and selection processes. It involves providing timely feedback to applicants on the status of their application. It would ensure that Tiverton attracts the top talent available. The organization should sufficiently remunerate their employees. The purpose for this is to ensure employee retention. In most industries, competitors are more than willing to poach top talent from other organizations. It is paramount that Tiverton ensures it treats employees well to avert this competition. The measures to facilitate this include attractive salaries and benefits, flexible work schedules. The organization is to practice fair employment practices that do not discriminate against race, gender or origin. It should provide equal opportunities to all employees. Excellent performance management and assessment are imperative to the employees of every business. It is crucial that the employees understand the goals and objectives of the organization. It provides insight on what it is that is expected from them. Assessment involves providing feedback to the employees on their jobs and activities. The organization should provide employees with the tools to achieve high performance and award those who do that. The result of this management and assessment is the continuous improvement of the workers, high morale among the employees and motivation to succeed. The human resource executive should be given a voice to be heard in the organization. It is crucial that employees are incorporated in the running and administration of the business. Their ideas and opinions should be taken into account when making business decisions. It has the effect of aligning the company to employee needs and improving their satisfaction. That would only lead to the increased profitability and success of the company. An example of what Tiverton should do is incorporating an executive of the human resource department into the company board. That would go a long way in enhancing the inclusiveness of all employees in the enterprise. From the evidence presented, the Board is composed of people who have no connection to the employees of the company (Holland, 70-80). Conclusion The above identified human resource practices would assist Tiverton in achieving its set goals and objectives. Human resource is an asset that should be tapped to ensure the profitability and continued success of the company. The company would also be able to stay a step ahead of its competition through talent retention, management and nurturing. These measures are to ensure that the talent in the company is well managed, developed and cultivated for the current and future profitability and progress of the business. Work Cited Holland, C. “The Art of Business Succession Planning: Who Will Fill Your Shoes?” John Wiley & Sons, 2012. 64 – 124. Print Read More