THE EFFECTS OF LEADERSHIP SUCCESSION PLANNING ON ORGANIZATIONAL STABILITY AND GROWTH ( A CASE STUDY OF SMES IN BAMENDA, CAMEROON)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Succession planning involves the organization's actions to maintain ongoing leadership, retain and nurture intellectual talent for future needs. This process aims to establish stability and longevity within the workforce, thereby ensuring sustained effective performance for the organization (Rothwell, 2019). Beyond simply maintaining ongoing leadership, retaining and nurturing intellectual talent for future needs or taking over vacant jobs, succession planning include a deliberate talent administration strategy that ensures a seamless transition in leadership and promotes organizational consistency. In addition, succession planning, first and foremost, facilitates organizations' smooth transitions between leadership roles. By actively seeking for and developing potential successors, organizations can lessen challenges, stay focused on their goals, and preserve significant stakeholder partnerships. That constancy in leadership ensures the organization's ability to adapt to change, overcome challenges, and sustain operational reliability. Nevertheless, succession planning done well has several benefits and a big impact on an organization's stability and growth (Pritesh, 2023). 

Organizational growth has long been a focal point within the business landscape, prompting numerous studies aimed at identifying the contributing factors. In contemporary times, this has become an essential consideration for all organizations. Researchers have defined organizational growth in various ways, including financial productivity, expansion of workforce, and retention of skilled employees. However, this study specifically examines two critical factors driving organizational growth: the strategic placement of employees in suitable roles for leadership and the effects of succession planning on organizational stability and growth, particularly SMEs. Numerous discussions highlight the potential of effective succession planning to serve as a blueprint for an organization's future growth trajectory. However, according to Karanja (2022), succession planning entails the identification of key positions within the organization and the establishment of a systematic approach to guide the attainment of organizational goals within specified timeframes. Additionally, Rothwell (2018) outlines five key components of succession planning: identification of critical organizational roles, assessment of individual competencies required for these roles, enhancement of existing staff capabilities to meet future organizational needs, and evaluation of the overall effectiveness of the plan. Research indicates that a well-executed succession plan significantly contributes to organizational growth by providing clear directives for the recruitment of potential leaders and ensuring their retention for the requisite duration within the organization. Therefore, a survey will be conducted in order to investigate the effects of leadership succession planning on organizational stability and growth.

1.2 Statement of the Problem

Planning for succession entails more than just immediately filling available posts. Its main goals are to open opportunities for talent and develop a pool of individuals who possess the skills needed to take up important roles as soon as they become available. Succession planning recognizes the importance of long-term organizational viability and the necessity to cultivate future leaders capable of steering the organization toward sustained success. However, when succession planning is implemented, stakeholders and individuals who are accustomed to the current system of leadership frequently object (Akinwande, 2019). Successful change in management techniques, straightforward interaction, and an emphasis on the advantages of succession planning are necessary for conquering resistance. Furthermore, it may be important to implement leadership development programs and skill evaluation procedures as part of the succession preparation process, which could require a significant investment of resources. However, establishing effective succession planning strategies might be challenging for organizations that are understaffed or underfunded.According to the research by Pritesh (2023),he asserts that good succession planning reduces leadership voids, improves organizational continuity, boosts employee engagement, draws in the best candidates, and fosters innovations. Yet, due to opposition to change, a lack of resources, and issues with talent identification, succession planning implementation can be tough. Nevertheless, to address these challenges, organizations could put into practice techniques like empowering senior leadership, creating a talent pipeline, promoting a culture of learning and development, using technology for skills evaluation, and evaluating the effectiveness of succession planning activities (Park & Gursoy, 2018). Hence, it is in the light of these that the study seeks to investigate the effects of leadership succession planning on organizational stability and growth.

1.3 Objectives of the Study

The main purpose of this study is to investigate the effects of leadership succession planning on organizational stability and growth. Specifically, the study will;

Determine the extent to which leadership succession planning practices are implemented in selected small-scale businesses in Cameroon.

Identify the leadership succession planning practices adopted by small-scale businesses in Cameroon.

Assess the impact of leadership succession planning on stability of small-scale businesses in Cameroon.

Investigate the challenges hindering the effective implementation of leadership succession planning in small-scale businesses in Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

To what extent are leadership succession planning practices implemented in selected small-scale businesses in Cameroon?

What leadership succession planning practices are commonly adopted by small-scale businesses in Cameroon?

How does leadership succession planning impact the stability of small-scale businesses in Cameroon?

What are the challenges that impede the effective implementation of leadership succession planning in small-scale businesses in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant effect of leadership succession planning on organizational stability and growth.

Ha: There is a significant effect of leadership succession planning on organizational stability and growth.

1.6 Significance of the Study

The significance of succession planning extends beyond mere administrative duty; it stands as a critical operational necessity for firms. By actively managing talent, nurturing the next generation of leaders, and ensuring a seamless transfer of leadership, organizations can achieve operational balance, stimulate creativity, and fortify their position in an increasingly competitive business landscape. The findings of this study provide valuable insights and actionable guidance for companies seeking to develop and implement effective succession planning strategies. It is imperative for organizations to acknowledge the fundamental importance of succession planning and allocate the requisite resources, leadership support, and ongoing commitment to its execution in order to thrive. By integrating continuity planning into their organizational ethos, companies can adeptly navigate leadership transitions, foster continual talent growth, and position themselves for sustained long-term success. Furthermore, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the effects of leadership succession planning on organizational stability and growth.

1.7 Scope of the study

The scope of this study is boarded on the effects of leadership succession planning on organizational stability and growth. Empirically, this study will determine the extent to which leadership succession planning practices are implemented in selected small-scale businesses in Cameroon, identify the leadership succession planning practices adopted by small-scale businesses in Cameroon, assess the impact of leadership succession planning on stability of small-scale businesses in Cameroon and investigate the challenges hindering the effective implementation of leadership succession planning in small-scale businesses in Cameroon.

Geographically, the study will be delimited to business owners in Bamenda, Cameroon

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Leadership styles: the diverse approaches and methods that leaders or managers use to guide and influence their teams or organizations.

Employee: is an individual who works for an organization or company in exchange for compensation, such as a salary or wages.

Succession Planning: is a strategic process designed to identify and develop future leaders within an organization to ensure continuity and smooth transitions in key positions. It involves assessing current talent, identifying potential successors, and implementing strategies to prepare them for future roles.