MHA 702 exam 3
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1. Succession planning: -useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
2. Career planning: -succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
3. Senior organization leaders: Expected to retire over 5 to 10 years
4. Organizations without succession plans: Uneasiness is intensified and negatively affect perfor-
mance
Leaving development of future leaders to chance
5. CEO is responsible for: Initiating succession planning
6. Organizations with succession plans: More likely to have smoother leadership transition
7. Board of directors is responsible for: Appointing a successor
8. Succession planning should begin: 4 years prior to CEO leaving
9. HR responsibility: Managing succession planning process
10. Succession planning saves organizations: -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
11. Grooming an internal person: -key element of for-profit succession planning
12. Hiring outside of an organization: -requires 6-12 months before financial performance regains
the level that existed prior to replacement
13. 5 principles to succession planning: -board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
-agreements made must be communicated to succeeding board leadership and must be honored
-governing board has final say
14. A continuous process: -succession planning must be continuous
-successor should always be available
-significant development assignments can be arranged to ensure appropriate experiences are encountered
15. Feedback loops: Are critical in succession planning
16. Goals and timelines: -created and monitored
-important for transition
, MHA 702 exam 3
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-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
17. Succession planning should begin early: -for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
18. Potential pitfalls: -connections to social network and psychological ties to organization that complicate
effort to change
-inappropriate or limited experience
19. CEO/ Management team damaged: -only bringing in an entire new regime can sweep organiza-
tion clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
20. Organizations May inventory potential employees: Often called assessing their inside
bench strength
21. If no suitable candidates: -based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
22. Succession planning can become costly: -Due to expense of maintaining 2 individuals with high
salaries over time
23. CEO must be mature: -May feel threatened by trained successor standing in wings, poised to takeover
at a misstep at the whim of board of directors
24. Why organizations have not created succession plans: -require time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
25. Organizations without plans: Complain of being swamped by more immediate and pressing issues
26. Leadership is: Critical for long term effectiveness of contemporary organizations
27. CEO and governing Boards: Must understand succession plans are essential strategic goal important
for continuous success of organization
, MHA 702 exam 3
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28. Myths: -boards believe succession planning hastens CEO departure.
-CEOs fear they will lose power and become lameduck leaders.
-perception could be strengthened if succession plan names next leader.
-CEOs fear if they talk about leadership change, the board will think they are planning to leave.
-boards don't want to talk about planning to imply they lost confidence in CEO
29. Outside hiring if CEO: -risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
30. Barriers to succession planning: -Composed of self imposed fears and concerns
-HR can mitigate fears by providing more knowledge about the practice of succession planning
31. Survey of 2,500 largest public companies: Those that found themselves scrambling to find
replacement for departing CEO lost on average 1.8 billion in share holder value during the year following CEO departure
32. Statistics show 15% of large companies: Will be in search of a ceo this year and only half have
designated successors/succession plans
33. Statistics show 30% to 50% of new CEOs: Fail within first 15 months of the job
These CEOs are not prepared or groomed to succeed
34. New employees: Justified and approved by senior manager coo cfo etc
Provides approved personnel requisition to hr
35. After approval, HR will: Review position description
Check references
Verify education
Procure candidates (about 5)
36. Managers interview candidates: -Use standardized list of questions
-Discussion of position organization and benefits
-Avoid discussing compensation(range is okay)
-Create list of acceptable candidates
37. HR is familiar with: All applicable laws
38. Responding to references: -by hr
-should not contain any subjective statements
-answered impersonally and directly from records
39. Information that is not in an employee file: Does not exist. Nothing is off employee record
40. Legal policies: Responding to references many do not respond at all or limited answers to verify titles and
dates of employment
, MHA 702 exam 3
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41. Organizations fear: Legal repercussions resulting from reference requests
42. Possible undesirable outcomes (a conundrum): -if an employee causes harm while working,
the organization that failed to do a reference check, organization at risk of being charged negligent hiring
-If past employer has relevant documented knowledge, but does not reveal information upon request, former employer
at risk for legal action brought by new organization or injured party
43. Charges of defamation: Relatively common
Against hr
44. Responding to references requests: -Must be factual from personal record
-should not attempt to interpret record
45. Negligent hiring cases: Less common but more serious/expensive
46. Frequently is defined as: 3 times a month or more
47. No formal HR Department: -reference requests centrally addressed uniformity
-person responsible for maintaining personnel files responds
48. Reference requests should be documented: -added to personnel record
-date, info provided, name of organization requesting, contact info, person spoken to, and person giving out info.
-can resolve legal claims
49. Supervisors should observe the rule: Offer no negative judgments and convey nothing that
cannot be verified in personnel file
50. Weighing the risk of defamation: Giver of reference must weigh risk of defamation lawsuit by ex
employee against the risk of a bad hire lawsuit by requestor or victim
51. Weighing the risk of negligent hire: The requestor of a reference must weigh the risk of negligent
hire by injuries person against the risk of discrimination lawsuit by potential employee
52. A Manager's Role in Finding Candidates: -keep position descriptions up to date
-groom employee advancement
-give hr advance notice about future needs/ hints special opportunities to connect with potential hires
53. Advertise open positions: -internet and social media
-paper approaches have limited effectiveness now
-Sunday paper most effective for lower order jobs
-periodicals aimed at special groups (professionals)
54. Networking: -series on contracts, referrals, subsequent contact
-personal contacts
-job fairs
Study online at https://quizlet.com/_hsdddh
1. Succession planning: -useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
2. Career planning: -succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
3. Senior organization leaders: Expected to retire over 5 to 10 years
4. Organizations without succession plans: Uneasiness is intensified and negatively affect perfor-
mance
Leaving development of future leaders to chance
5. CEO is responsible for: Initiating succession planning
6. Organizations with succession plans: More likely to have smoother leadership transition
7. Board of directors is responsible for: Appointing a successor
8. Succession planning should begin: 4 years prior to CEO leaving
9. HR responsibility: Managing succession planning process
10. Succession planning saves organizations: -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
11. Grooming an internal person: -key element of for-profit succession planning
12. Hiring outside of an organization: -requires 6-12 months before financial performance regains
the level that existed prior to replacement
13. 5 principles to succession planning: -board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
-agreements made must be communicated to succeeding board leadership and must be honored
-governing board has final say
14. A continuous process: -succession planning must be continuous
-successor should always be available
-significant development assignments can be arranged to ensure appropriate experiences are encountered
15. Feedback loops: Are critical in succession planning
16. Goals and timelines: -created and monitored
-important for transition
, MHA 702 exam 3
Study online at https://quizlet.com/_hsdddh
-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
17. Succession planning should begin early: -for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
18. Potential pitfalls: -connections to social network and psychological ties to organization that complicate
effort to change
-inappropriate or limited experience
19. CEO/ Management team damaged: -only bringing in an entire new regime can sweep organiza-
tion clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
20. Organizations May inventory potential employees: Often called assessing their inside
bench strength
21. If no suitable candidates: -based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
22. Succession planning can become costly: -Due to expense of maintaining 2 individuals with high
salaries over time
23. CEO must be mature: -May feel threatened by trained successor standing in wings, poised to takeover
at a misstep at the whim of board of directors
24. Why organizations have not created succession plans: -require time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
25. Organizations without plans: Complain of being swamped by more immediate and pressing issues
26. Leadership is: Critical for long term effectiveness of contemporary organizations
27. CEO and governing Boards: Must understand succession plans are essential strategic goal important
for continuous success of organization
, MHA 702 exam 3
Study online at https://quizlet.com/_hsdddh
28. Myths: -boards believe succession planning hastens CEO departure.
-CEOs fear they will lose power and become lameduck leaders.
-perception could be strengthened if succession plan names next leader.
-CEOs fear if they talk about leadership change, the board will think they are planning to leave.
-boards don't want to talk about planning to imply they lost confidence in CEO
29. Outside hiring if CEO: -risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
30. Barriers to succession planning: -Composed of self imposed fears and concerns
-HR can mitigate fears by providing more knowledge about the practice of succession planning
31. Survey of 2,500 largest public companies: Those that found themselves scrambling to find
replacement for departing CEO lost on average 1.8 billion in share holder value during the year following CEO departure
32. Statistics show 15% of large companies: Will be in search of a ceo this year and only half have
designated successors/succession plans
33. Statistics show 30% to 50% of new CEOs: Fail within first 15 months of the job
These CEOs are not prepared or groomed to succeed
34. New employees: Justified and approved by senior manager coo cfo etc
Provides approved personnel requisition to hr
35. After approval, HR will: Review position description
Check references
Verify education
Procure candidates (about 5)
36. Managers interview candidates: -Use standardized list of questions
-Discussion of position organization and benefits
-Avoid discussing compensation(range is okay)
-Create list of acceptable candidates
37. HR is familiar with: All applicable laws
38. Responding to references: -by hr
-should not contain any subjective statements
-answered impersonally and directly from records
39. Information that is not in an employee file: Does not exist. Nothing is off employee record
40. Legal policies: Responding to references many do not respond at all or limited answers to verify titles and
dates of employment
, MHA 702 exam 3
Study online at https://quizlet.com/_hsdddh
41. Organizations fear: Legal repercussions resulting from reference requests
42. Possible undesirable outcomes (a conundrum): -if an employee causes harm while working,
the organization that failed to do a reference check, organization at risk of being charged negligent hiring
-If past employer has relevant documented knowledge, but does not reveal information upon request, former employer
at risk for legal action brought by new organization or injured party
43. Charges of defamation: Relatively common
Against hr
44. Responding to references requests: -Must be factual from personal record
-should not attempt to interpret record
45. Negligent hiring cases: Less common but more serious/expensive
46. Frequently is defined as: 3 times a month or more
47. No formal HR Department: -reference requests centrally addressed uniformity
-person responsible for maintaining personnel files responds
48. Reference requests should be documented: -added to personnel record
-date, info provided, name of organization requesting, contact info, person spoken to, and person giving out info.
-can resolve legal claims
49. Supervisors should observe the rule: Offer no negative judgments and convey nothing that
cannot be verified in personnel file
50. Weighing the risk of defamation: Giver of reference must weigh risk of defamation lawsuit by ex
employee against the risk of a bad hire lawsuit by requestor or victim
51. Weighing the risk of negligent hire: The requestor of a reference must weigh the risk of negligent
hire by injuries person against the risk of discrimination lawsuit by potential employee
52. A Manager's Role in Finding Candidates: -keep position descriptions up to date
-groom employee advancement
-give hr advance notice about future needs/ hints special opportunities to connect with potential hires
53. Advertise open positions: -internet and social media
-paper approaches have limited effectiveness now
-Sunday paper most effective for lower order jobs
-periodicals aimed at special groups (professionals)
54. Networking: -series on contracts, referrals, subsequent contact
-personal contacts
-job fairs
