LSUS Hr Exam 3
Succession plans for middle managers are often more accurately described by the term - ANS
Career Planning
What is the key difference between succession and career planning? - ANS Focus
A substantial number of senior organizational leaders are expected to retire over the next how
many years? - ANS 5-10 years
Organizations with succession plans are more likely to have smoother leadership transitions (t/f)
- ANS True
What may be required for outside persons to understand organizations when trying to be hired
in? - ANS Considerable time and effort
Who is responsible for initiating succession planning? - ANS The current CEO
Who is responsible for appointing a successor? - ANS The Board of Directors
How long before should succession planning begin before a CEO is expected to step down? -
ANS 4 years
HR selects the new CEO and has the responsibility for managing the succession planning
process? (t/f) - ANS False, they only are responsible for managing the succession planning
process.
Over the long term, how will succession planning save organizations money: - ANS -Executive
search fees can be eliminated (often 50% of the new CEOs salary)
What does an org maintain when an inside person is groomed and promoted? - ANS
leadership continuity
What has traditionally been considered a key element of for-profit sector succession planning? -
ANS Grooming an internal person to take over
How many months do orgs usually require before financial performance regains the level that
existed prior to the replacement? - ANS 6-12 months
What should be one of the governing board's two or three most important tasks? - ANS
Succession planning
, What is important in the continuous process in succession planning? - ANS Feedback loops
are critical
A clear exit strategy should be developed for the outgoing CEO (t/f) - ANS True
Once the succession transition has taken place what should happen next? - ANS A clear exit
strategy should be developed for the outgoing CEO
HR should not review the whole succession process (t/f) - ANS False, should to help
understand what worked and what did not work
Potential Pitfalls - ANS •Inside candidates may have connections to social networks and
psychological ties within an organization that can complicate efforts to change organizational
culture if changes are needed
•Inappropriate or limited experiences
•In some situations, the credibility of an outgoing CEO and management team (which might
include the designated successor) is so damaged that only bringing in an entire new regime can
sweep an organization clean
- in these situations, it is very likely that the organization will be "taking a fall" anyway. Generally,
this type scenario comes out of a scandal, mismanagement, failed take over, etc.
Why Organizations Have Not Created Succession Plans - ANS •Developing a succession plan
requires time and thought but is not a daunting task
•Organizations without succession plans often complain of being swamped by more immediate
and pressing issues
•Governing boards often lack experience with succession planning
•They fail to see how it benefits their organization
Some organizations avoid succession planning because their governing boards believe that an
outside person must be recruited (t/f) - ANS True
The Cost of Inadequate Succession Planning - ANS CEOs lost on average, $1.8 billion in
shareholder value during the year following the old CEOs departure. Other literature points out
that 15% of large companies will be in search of a CEO this year and only half have a
designated successor or even a succession
Recruiting process is initiated when.... - ANS department manager provides an approved
personnel requisition to HR
Once position approved, HR will: - ANS -Review position description
-Check references & verify education
-Procure candidates (normally about 5)
Succession plans for middle managers are often more accurately described by the term - ANS
Career Planning
What is the key difference between succession and career planning? - ANS Focus
A substantial number of senior organizational leaders are expected to retire over the next how
many years? - ANS 5-10 years
Organizations with succession plans are more likely to have smoother leadership transitions (t/f)
- ANS True
What may be required for outside persons to understand organizations when trying to be hired
in? - ANS Considerable time and effort
Who is responsible for initiating succession planning? - ANS The current CEO
Who is responsible for appointing a successor? - ANS The Board of Directors
How long before should succession planning begin before a CEO is expected to step down? -
ANS 4 years
HR selects the new CEO and has the responsibility for managing the succession planning
process? (t/f) - ANS False, they only are responsible for managing the succession planning
process.
Over the long term, how will succession planning save organizations money: - ANS -Executive
search fees can be eliminated (often 50% of the new CEOs salary)
What does an org maintain when an inside person is groomed and promoted? - ANS
leadership continuity
What has traditionally been considered a key element of for-profit sector succession planning? -
ANS Grooming an internal person to take over
How many months do orgs usually require before financial performance regains the level that
existed prior to the replacement? - ANS 6-12 months
What should be one of the governing board's two or three most important tasks? - ANS
Succession planning
, What is important in the continuous process in succession planning? - ANS Feedback loops
are critical
A clear exit strategy should be developed for the outgoing CEO (t/f) - ANS True
Once the succession transition has taken place what should happen next? - ANS A clear exit
strategy should be developed for the outgoing CEO
HR should not review the whole succession process (t/f) - ANS False, should to help
understand what worked and what did not work
Potential Pitfalls - ANS •Inside candidates may have connections to social networks and
psychological ties within an organization that can complicate efforts to change organizational
culture if changes are needed
•Inappropriate or limited experiences
•In some situations, the credibility of an outgoing CEO and management team (which might
include the designated successor) is so damaged that only bringing in an entire new regime can
sweep an organization clean
- in these situations, it is very likely that the organization will be "taking a fall" anyway. Generally,
this type scenario comes out of a scandal, mismanagement, failed take over, etc.
Why Organizations Have Not Created Succession Plans - ANS •Developing a succession plan
requires time and thought but is not a daunting task
•Organizations without succession plans often complain of being swamped by more immediate
and pressing issues
•Governing boards often lack experience with succession planning
•They fail to see how it benefits their organization
Some organizations avoid succession planning because their governing boards believe that an
outside person must be recruited (t/f) - ANS True
The Cost of Inadequate Succession Planning - ANS CEOs lost on average, $1.8 billion in
shareholder value during the year following the old CEOs departure. Other literature points out
that 15% of large companies will be in search of a CEO this year and only half have a
designated successor or even a succession
Recruiting process is initiated when.... - ANS department manager provides an approved
personnel requisition to HR
Once position approved, HR will: - ANS -Review position description
-Check references & verify education
-Procure candidates (normally about 5)
