I am most grateful to my supervisors Mr. Dedan Ong’anya, Dr. Bernard Nassiuma and the Late Mr. John Magero for their guidance and assistance during the production of this work.

I am also grateful to all lecturers especially Dr. L. Mulongo who was a great inspiration throughout my studies.

My gratitude also goes to colleagues especially my sister Isabella Simiyu who provided encouragement and moral support.

God bless all.

Traditionally organizations have used senior executives in identifying and grooming employees of their own choice for future roles. In the modern times, however, succession planning has emerged in developed countries as a major determinant of business success. Little information exists on how firms are integrating it in organization performance in Kenya. The study therefore sought to examine the effect of succession planning on organization performance within public organizations using Nzoia Sugar Company as a case study. The objectives of the study were to examine how succession planning contributes to organizations performance, identify the factors considered in identifying potential successors , establish the programmes the company introduced to develop potential successors in organizations, document the challenges faced in using succession planning and to explore ways of improving succession planning in Kenyan corporations. It was based on the hypothesis that there is no relationship between succession planning and organization performance and programmes introduced to develop skills of potential successors contribute to organization performance. The study was guided by Weiner attribution theory .It was based on descriptive research design for both unionized employees and managers. Stratified sampling was used on a sample of 204 representing a population of both unionized employees and management. Data was collected through questionnaires and was analyzed descriptively using statistical packages for social sciences. Descriptive statistics included the use of frequencies and percentages based on the research questions , objectives and hypothesis. The results showed that succession planning affects organization performance, and it should be the concern of all departments in the organization. The study will be useful in widening the knowledge base on succession planning and its influence on the performance of corporations. To the employees it will enable them to develop their careers and thus experience personal growth and development. The study recommended that every organization should include succession planning in the strategic plan. The employees to be encouraged to further their education level and all employees to be sensitized about succession planning. Further research can be done on succession planning based on comparative study, mainstreaming gender in succession planning and succession planning in private business, to acquire additional information, which may not have been discovered during the present research .The study therefore concluded that succession planning is an important corporate strategy which every company should embrace in order to realize business success.

DECLARATION…………………………………………………………………………… ii

DEDICATION………………………………………………………………………………iii

Table 4:1 Democraphic Inforamtion of Respondents (Unionised)………………………….

Table 4.3.4 Descriptive and frequency distribution on factors considered in identifying successors and the approach in filling vacancies. 66

Table 4.3.6 Descriptive and frequency distribution on what performance means meeting targets, salary increase, many customers and expansion of the business. 67

Table: 4.3.11 Descriptive and frequency distribution on what caused succession in Nzoia Sugar Company. The findings were as follows;- 71

Figure 1: Year of Employment for Unionized employees ---------------------------- 38

Figure 2: Mentoring, coaching and job rotation in the company -------------------- 45

Figure 3: Awareness of succession planning training -------------------------------- 46

Figure 4: Year of employment for managers ------------------------------------------ 51

Figure 5: Succession planning and vacancies ----------------------------------------- 52

Figure 6: Achievement on organization, individuals and teams -------------------- 54

Figure 7: Intervals of appraisals -------------------------------------------------------- 55

Figure 8: Type of organizational structure -------------------------------------------- 56

S.P - Succession Planning

O.P - Organizational Performance

H.R. - Human Resource

C.E.O. - Chief Executive Officer

S.P.S.S - Statistical Packages for Social Sciences

Succession – coming after another or taking over from another from another

employee who has either retired, transferred, terminated or died.

Planning – To show how succession was done in the organization

Organization – This is the company in which the research was done

Performance – Meeting the objectives and goals of the organization by

emphasizing the Human Resource

Critical positions – This are leadership position

High potential – An employee who has a capability to advance

Talent pool – A group of people who are being developed for future roles

2

i

This chapter provides an introduction to the study. It commences with the background of the study, followed by the statement of the problem, objectives, research questions and assumptions of the study, the significance of the study, justification, limitations, assumptions, scope, conceptual framework and theoretical framework for the study.

Organizations today are facing a number of challenges arising out of competition in the business environment. This scenario demands that organizations put in place the best management practices in place. The essence is to achieve succession planning in order to avoid power vacuums created by transfers, promotion, and other job related issues. This practice has been used for many years without giving it the emphasis it deserves in most organizations; however, in the recent times it has become an important tool for organizational success (Armstrong, 2000).

In today’s highly competitive environment, human capital constitutes an organizations most important asset, often differentiating highly successful businesses from those which struggle. Yet, in the ongoing effort to develop a strong and capable workforce, many organizations focus almost entirely on hiring and training staff. This is at the expense of managing succession planning which may be considered to be the most essential ingredient in building an organization that is capable of achieving its strategic goals (source). Most studies have shown that organizations with succession planning programs have a higher human capital retention rate and a remarkable reduction in recruitment and compensation costs. This thus enables an organization to achieve its strategic goals.

Most managers fail to integrate succession planning in their operations until it needs to be implemented. Suddenly there is avoid at the top and nobody has been primed to fill it. Leadership transitions in business affect the entire organizations continuity, employee retention, client retention and returns on investment. It is essential to create and implement a process that create and implement a process that creates visibility, accountability and greater integration of all facets of the business. Organizations are now realizing that there is need to expand the scope of succession planning, not only to cover the top executives but also the key persons in the entire organization - Elsie Aikens (2001). More recently succession planning has expanded yet again whereby enlightened corporations are integrating this practice into their strategic planning processes and corporate policies (Troon, 2009).

With Baby boomer, retirement waves looming and the economic climate creating a real urgency to retain and develop the best and the brightest, succession planning is still an imperative business issue in preparing for tomorrow. Well known succession planning expert Rothwell (yr) in his book “Effective succession planning,” identifies the benefits of succession planning such as increased opportunities for high potential workers; identifying justifiable training, employee education and development opportunities/needs among others.

The problem of not including succession planning (management) in the strategic planning of organizations has had effects on their performance. The business case for succession planning is not new, but the business mandate has never been stronger. The labor market – both the demand and supply sides – continues to shift. In the U.S. for example, the shifting age mix of workers brings to the fore the need for effective succession planning. We have all seen statistics like these: the Bureau of Labor Statistics (BLS) and the Census Bureau project that there will be almost no growth in the number of younger workers (. age 25 to 44) in the U.S. labor force in this decade. Meanwhile, the number of workers age 55 and above will grow by over 40 percent. Besides the common sense need for succession planning given these statistics, it has also been shown in research studies that companies who do effective succession planning have better business results.

Currently, statistics indicated that projected growth of the U.S. labour force will be seriously affected by the aging baby-boom generation.

Consider the following U.S. department of labour: -

By 2010, the U.S labour force will have a shortage of 10 million workers

By 2012, 162.3 million people will be in the work force

By 2012, 55-and-older segment of the work force (many in management positions) will have increased to 19.1% due to an annual growth rate of 4.1%, almost 4 times the rate of growth of the overall labour force.

Bracing for the eventual swell in retirements, companies are turning to succession planning to ensure their pipeline is full of potential replacement (Ibarra, 2005). In addition to the above, statistics indicated that executive turnover is poised to increase significantly over the next few years as baby boomers retire (Journal for quality and participation, October 1, 2005). Looking at the position worldwide, succession planning is a concern of all the companies whether small or big, for example in the U.S.A succession planning is a problem among companies like Wall Street, Merrill Lynch, Citigroup Inc and the University of Medical Centre at Arizona. In the Indian empire it is still a problem especially among family run businesses. Corporations have experienced battles due to lack of successors after the death of the founders. This has been noted among the prominent and rich businessmen like Mukesh and Ambani (. Rai, 2005).

In Jordan, Kazakhastan, Kenya, Korea, Kuwait, Kyrgyzstan, Latva and Lebanon, the value of succession planning is not understood. In Atlanta Canada the biggest long term issue is lack of talent management strategies and the relationship with changing demographics. The situation is the same in the United Arab Emirates where telephone operators have not carefully considered succession planning in this era of economic changes. Regionally, succession planning is still a critical issue among organizations.

Elsie Aikens in her article, “How can I plan for succession?” has pointed out that in Ghana and possibly across most countries in Sub-Saharan Africa, companies have suffered greatly due to lack of proper succession plan for management and critical positions. On a recent review assignment, it was discovered that a large multinational, did not have a working succession plan. This had created several different situations. According to the article by Jayne Mamatt, succession planning must be a key business strategy (28th August, 2008), she says that it is necessary to build a sustainable pipeline of potential successors due to factors such as skills shortage that is plaguing the country.

Succession Planning is a very important management strategy that enables organizations to achieve organizational goals and objectives effectively and efficiently. The current scenario in most Kenyan organizations is that this component has been ignored. This is evidenced by at times managers being politically appointed and in most cases they have been picked from fields that are not related to organizations where they are meant to manage. In other cases tribal considerations are used not qualifications. In Nzoia Sugar Company if the vacancy is left for long it will interfere with performance of work since they will not have a qualified employee at hand. Thus this study seeks to determine the effects of succession planning on the organization performance.

The main objective of the study was to examine the effect of succession planning on organization performance using Nzoia sugar Company as case study.

Specific objectives were as follows: -

To highlight the factors considered in identifying potential successors in the organization.

To establish programmes the company introduced to develop potential successors.

To assess the challenges faced in using succession planning in Kenyan corporations.

To explore ways of improving succession planning in determining organizational performance.

This study was guided by the following questions:

How does succession planning contribute to performance of the organization?

What programmes has the company introduced to develop skills of potential successors

in the organization?

What challenges does the company management face in succession planning as way of determining organizational performance?

What are some of the ways of improving Succession Planning?

1.6 Hypothesis

There is no relationship between succession planning an organization performance.

The programmes introduced to develop the skills of potential successors contribute to organization performance.

This study is expected to be useful in widening the knowledge base on succession planning and its influence on the performance of corporations. It is also hoped that the findings will provide information that will be used to come up with new ways of improving succession planning to the managers and other stakeholders in organizations. To the employees it will enable them to develop their careers and thus experience personal growth and development.

The purpose of this study is to examine the role of succession planning on organizational performance. It is hoped that the study would provide information that would be used to develop policy recommendations for revised plans on succession planning. New ways of doing it will be introduced and this will enable the organization to perform well.

Succession planning is not only aimed at achievement of objectives and goals of the organizations but to be able to maintain good employees, to have replacements for those who retire and promote those who are competent. Succession planning is a problem facing many organizations due to lack of proper mechanisms to identify the right people. This has sometimes led to out sourcing of CEOs hence rendering this study relevant.

More so little research has been done in this area. Therefore as a society we should be concerned about succession planning. The recommendations made by this study on the role of succession planning and its implementation strategy are far reaching and therefore if taken and adhered to they can improve the overall performance of organizations both large and small scale.

During the research, some of the limitations that were encountered include, information required was too sensitive and some of the respondents were not ready to share it out especially the junior staff. This was may be due to fear of being exposed and also may be ignorance in giving out the true figures but the researcher was able to overcome this by assuring confidentiality to the respondents.

Also the research population seemed very busy and their availability at times was a problem. This required proper timing and notifying them in advance hence efficiency of the process.

Moreover, qualitative data analysis largely depends on the researcher interpretation and understanding. The principal researcher having been involved in public administration over 5 years and despite conscious effort to control its effects during the design and implementation of the study, this study acknowledges the potential for researcher bias.

This study involved managers and junior staff of Nzoia Sugar Company as the samples of study. Consequently, the results of this study may not be generalized to all Sugar Companies in Kenya they can be generalized to all employees in Nzoia Sugar Company.

The study on the effects of succession planning was conducted among the managers and the unionized employees of Nzoia Sugar Company in Bungoma district. The study took a total duration of one month as from 26th January, 2009 to 26 February, 2009, by using stratified random sampling technique of different employees.

Qualitative research data was collected using questionnaires and interview schedule from a sample of 192 junior staff and 5 managers who were randomly selected from the target population.

This study was based on attribution theory. An attribution is made when other peoples actions are perceived and described with the aim of discovering why they behave the way they do.. Attributions can be made about people’s behavior. Research by Weiner (1974) and others has indicated that when people with high achievements needs have been successful, they ascribe this to internal factors such as ability and effort. High achievers tend to attribute failure to lack of effort and not lack of ability.

CHAPTER TWO

This chapter describes succession planning in detail and highlights the key issues that are considered by organizations both in developed and undeveloped countries.

2.1 Succession planning Defined

Taylor (2002) identifies three types of planning that aim at achieving practical goals and objectives of the organization. Micro-planning deals with forecasting supply and demand for specific groups. Contingency planning covers the situation where possible scenarios are examined and the implications assessed before major decisions are taken. Succession planning is a third type that focuses on man power planning activity such as recruitment and development of employees in order to fill managerial and top positions. Collins (2009) defines succession planning as a process that can provide seamless leadership transition across the organization. ‘Strategic, systematic and deliberate effort to develop competencies in potential leaders through proposed learning experiences such as targeted rotations and educational training in order to fill high –level positions without favoritism (Tropiano, M ,2004).In the words charan et al(2001) succession planning is perpetuating the enterprise by filling the pipeline with high performing people to assure that every leadership level has an abundance of these performers to draw from, both now and in the future, From this perspective ,succession planning is seen as a management pipeline that accelerates management performance over a period of time. Charan’ definition looks into the future and this probably influences Scharmer (2007) assertion that succession planning is co-creating, a transformational stage during which management explores the future. Succession planning is organized process comprising the identification and preparation of potential successor to assume new role (Garman& Glawe, 2004).

According to Drakes (2008) succession planning entails identifying and analyzing key positions, assessing employees and contribution of employees to the organization. According to Troon (2009) in her paper on “Succession planning and talent management” she has highlighted that there are various ways of identifying and assessing potential successors in organizations. This are: self identification where organizations give employees the opportunity to express their interest in leadership roles. Career advancement or lateral moves.

The organizations can gather this information through various ways, including: encouraging career and learning discussions between employees and managers, and rolling up key information from this discussions for the management team, administering a survey, soliciting applications for more formalized developmental program and creating skills inventory data base or employee profile that provides information on employees career interests and skills competence.

The other important way, is through assessment methods and instruments. Here the organization may use a variety of tools for assessing potential for leadership or other key roles. These include performance reviews, talent review meetings, assessment centers, 360 degree feedback, written examinations, behavior – based interviews, in – basket exercises, simulation exercises or role playing, aptitude tests and reference checks.

2.2.2 Concept of manpower planning

As obtained from the, several studies have argued asserting that the function of personnel in contemporary organizations is undergoing a radical transformation; departing from the era of personnel administration to a concept of comprehensive and integrative approach that focuses on adequate utilization and development of human resources (Burack,and Gutteridge,1978;Fitzgerald,1992;Bjorn,2002;Aphander,1980).

This new concept referred to by several names such as human resource planning, manpower planning, human resource management, etc.

It’s important for organizations to make employees understand how they contribute to organization’s success by: Treating staff members as individuals and with respect - makes them part of the organization, developing employee centered Human resource initiative, understanding that employees can either make or break the organization and developing a clear performance management system. Succession planning is nothing more than having a systematic process where managers identify, assess and develop their staff to make sure they are ready to assume key roles within the company.

In most cases succession planning focuses on 3 main areas; First, it addresses the needs of the organization as senior management ages, Secondly, succession planning helps an organization to prepare for unexpected event. The sudden illness or death of an executive can reverberate throughout an organization, paralyzing both management and staff and impending the organization’s ability to execute a business plan. Recent world events illustrate how important S.P. is. For instance when the World Trade Centre attacks took place, dozens of companies lost key executives who were on planes or in buildings that were destroyed. Finally S. Planning ensures that an organization has the right personnel to function at peak efficiency (Barker, 2008)

Having this process in place is vital to the success of the organization because the individuals identified in the plan will eventually be responsible for ensuring the company is able to tackle future challenges. These 'high potential' candidates must be carefully selected and then provided training and development that gives them skills and competencies needed for tomorrow's business environment.

Another reason why it is important is because these high potentials will one day become the leaders of the Company. This is why their development needs to incorporate a broad range of learning opportunities in your organization. The individuals should also be exposed to as much of the working environment as possible so that they gain a good understanding of what the company requires to remain successful. Succession planning is one of those initiatives that many companies don't find the time to start until it's too late -- if you don't address succession planning now your organization may end up facing the burden in the middle of a crisis.

Finally, organizations that understand the need to manage the development of their high performers are a step ahead of their competitors! The effort required to establish a development program for future leaders is worthwhile because it creates a motivated and capable group of employees that are ready to move forward in the organization when the need arises. For example one of the most successful business leaders of all time, Jack Welch, who started working at General Electric in 1960. As he moved upward in the organization he displayed leadership qualities that set him apart from his peers. But what did Jack Welch think of succession planning? One of his most admired skills was the ability to develop his subordinates so there was always someone ready to take his place when Jack was offered a promotion. How successful was his strategy? In 1981 he became the CEO of General Electric and served in that position until he retired in 2000.

Furthermore, in 1991, Jack Welch stated: 'From now on, choosing my successor is the most important decision I'll make. It occupies a considerable amount of thought almost every day.' That's a pretty strong statement for someone that had the vision and leadership ability to increase the value of General Electric from $13 billion to $410 billion dollars during his tenure. It’s clear to see that succession planning and development of future leaders does not exist in isolation - it needs to reflect the company's strategic objective and strategic goals.

For any organization to implement an effective succession plan there are a number of key issues that need to be considered: The succession planning program must have the support and backing of the company's senior level management ; Succession planning must be part of an integrated HR process that includes training, development and performance appraisal ; Identify what skills the organization will need in 5, 10 or 15 years ; Critical positions must be identified and included in the Company's succession planning program ; Identify high-performers that are almost ready to step into those critical positions ; Analyze the workforce and identify who will be eligible for retirement within the next five years.

Managers need to identify the responsibilities, skills and competencies that will be needed by their replacements; A system for communicating succession planning information to managers must be established. A systematic approach for identifying, nominating and selecting potential successors must be established; Background information on potential successors, such as education, experience, skills, appraisals and potential should be reviewed.

The training and development requirements of potential successors needs to be determined ; The skills of potential successors must be developed through work experiences, job rotation, projects and other challenging assignments; A system for monitoring candidate's development plan progress by senior management should be established; Succession planning must include a system for providing feedback and encouragement to potential successors ; Succession planning is basically a 'numbers game' that requires good organizational skills and the ability to pay attention to details.

Finally, the succession plan must belong 'to the organization' and not to the HR department in order to make sure it has the attention it deserves. Succession planning is not something a well-run company can ignore because the consequences of not being prepared to replace key personnel will have a major impact on an organization's ability to achieve its goals and strategic targets. The succession planning process needs to be considered as part of the company's strategic planning process because it deals with projecting future changes by anticipating management vacancies and then determining how to meet these challenges. (Williams, 2001).

In its simplest form succession planning is nothing more than getting managers in a company to use a systemic process to determine the current training and development requirements of their subordinates. Of course there are also a number of pitfalls you need to be aware of regarding succession planning: Focusing only on the 'technical competencies' and failing to consider the team-building and leadership development requirements ; Underestimating people within the organization or overlooking employees that don't appear to fit your standard 'company template' ; Implementing a program that is designed for upward mobility only - lateral succession moves should also be included in the plan ; Failing to offer the appropriate training and developmental opportunities; Creating a development program that only offers generic 'leadership' training programs.

The two biggest errors made regarding succession planning efforts; Not holding managers and leaders accountable for succession planning; Not sharing the data with employees - you run the risk of losing promising employees if they don't feel the Company has a plan for their development. This is why succession planning must be a coordinated effort between HR and line and senior executives must ensure the line managers get involved with their own division succession planning efforts. (Rai, 2005).

Finally, don't make the mistake of thinking succession planning is only concerned with 'upward' succession. Lateral assignments may also be used because there are fewer opportunities as you progress upward in the organization. It's the role of every manager to help their promising subordinates develop their fullest potential by continually challenging them and increasing their leadership competencies.

Therefore understanding the benefits of proper succession planning is necessary since it aims at improving organizational internal resource allocation, targeted recruitment activities, customed training programmers, and dealing with reduction in extensive vacancies for surrounding uninterrupted work productivity, leadership continuity and analyzing organizational capacity and future challenges

On improving organizational internal resource allocation, a multi-dimensional shift preparation is the buzz today, which goes a very long way to improving internal resource allocation along with this goes multi-specialist skilling. Concerning targeted recruitment activities, there is a myth to targeted recruitment, a high specialist in one area of expertise increases risk more than it alleviates challenges, head hunting is a favorite, recruitment is a multi-facetted task, and needs not only the job criteria to be attractive, but the environment surrounding the job is also crucial.

About accustomed Training Programmes, knowledge-based training programmes produce generic graduates which then need moulding into the skills required, for example, ten generic qualified people with the same qualification will mould into ten different skill sets according to their natural talent and aptitude, skills-based training in modular form gives the required results, and still leads to formally recognized qualifications.

In dealing with reduction in extensive vacancies for critical positions, the lateral development movement should alleviate many challenges created by upward succession planning. The challenge in Kenya is increased by the fact that Kenya has a (young) work force so it takes time to groom young resources into key positions, and yet they need to be filled. The strategy would be to attract multi-skilled mentors into those positions to perform the tasks required, and to up-skill the internal base. In the longer term, traditional succession planning, with its related challenges in place, will achieve that objective.

Finally, addressing issues surrounding uninterrupted work productivity can be done in the public and private sectors both in Kenya and other countries. Leadership continuity with proper succession planning there is leadership continuity as the saying goes “a new brush sweeps clean.”

While there are numerous benefits to succession planning, there are also challenges such as limited resources, and expertise within the company. Without the assistance of external consultants and coaches, implementing a succession planning initiative can drain organizations resources.

The most effective programs capitalize on the talent available. Throughout the company during the implementation phase, however, companies often lack the resources needed for ongoing management. In addition, utilizing external resources provides expertise in succession planning and offers an objective perspective.

Most of the studies reviewed indicate that survey has been the only method widely used but other methods can apply such as questionnaires and interviews. This has been shown by Benardine (2003) and Kaila (1999) among others. Kenya being among countries which are struggling to industrialize by 2030, it’s of importance that all key sectors practice what developed countries (are) doing, for example, U.K and U.S.A.

These countries have succession planning in their organizations. In an organizational development, S.P is the process of identifying and preparing suitable employees through mentoring, training and job rotation to replace key players such as the CEOs within an organization as their terms expire (Armstrong, 2007).

This clearly shows that no employee is permanent in a job and retaining an employee even after retirement age is not the best practice. One may wonder if he/she is the only qualified person. In other cases organizations without succession plans tend to get replacements from outside. From the risk management aspect, provisions are made in case no suitable internal candidates are available to replace the loss of any key person. It is usual for an organization to insure the key person so that funds are available if she or he dies and those funds can be used by the business to cope with the problems before a suitable replacement is found and developed.

Since S.P involves having senior executives periodically review their lower level to determine several back- ups for each senior position. This implies that senior executives should treat this practice with care. This will enable them to avoid future management problems such as wrangles like the ones experienced in Kenya. Organizations will need to create pools of candidates with high leadership potential. A careful and considered plan of action ensures the least possible disruption to the person’s responsibilities and therefore the organization’s effectiveness.

Examples include such a person who is; suddenly and expectedly unable or unwilling to continue their role within the organization; accepting an approach from another organization; accepting an approach from another organization or external opportunity which will terminate or lessen their value to the current organization; indicating the conclusion of a contract or time limited project; or moving to another position and different set of responsibilities within the organization. A. S. P clearly sets out the factors to be taken into account and the process to be followed in relation to the retaining or placing the person.

In addition, (Rai, 2005) has pointed out that S.P as a process of identifying and preparing suitable employees through mentoring, training and job rotation to replace key players such as the CEOs within an organization as their terms expire is not only meant for big businesses but also for small, organizations and individuals family businesses. Business strategic planning involves planning for the smooth continuation and success of a business which depends greatly on the availability of competent people be it profit or non – profit organization, one of the concerns is there may be no successor to drive it once the leader or key person leaves either by choice or by circumstances. This concern has been repeatedly expressed in the papers by leaders from the private and government sector.

It is people, or more aptly, the right people that make things happen but the music will stop one day! If the leader or key person does not retire (whether by old age, disability or choice) he will end his time of service when he dies and when they do problems often set in. The day after is often filled with chaos and uncertainty. What is likely to happen to the organization when a key leader is eliminated without succession planning in place? Here are some things to expect, first, there would be either no able successor or where there is, the successor is often either un-prepared to handle the heavy responsibilities placed upon them or he/she simply does not have the ability to manage the organization in the way it used to be. Whatever the case may turn out to be the situation can be dire for the organization. Profit may be lost. Business can become untenable to continue. In case of the unplanned death of an owner the remaining co-workers and the heirs may be embroiled in a relationship crisis that threatens to wreck the business (Sandra, 2004).

In unplanned situation, ineffective quick-fixed solutions are the only answers left. If no able successor can be found, a temporary replacement is often the only choice left, and the ultimate result may still be the downfall of the organization. It is difficult enough to run an organization with experience and ability.

Without the required qualities in the new leader, the rot of the organization is almost likely to set in immediately; unless it is lucky to have a replacement that happens to be suitable and motivated. If not, an unmotivated successor is equally bad news for the set-up. Without the drive, the organization will stay stagnant and more than likely to slide. (Troon, 2009)

Without succession planning a business that has become successful can just easily fail. The business grows because there is a leader (probably the owner) with experience drive and ability without proper succession planning, the future success of the business is left to chance once that leader is gone. Under such a circumstance, if it succeeds at all, it is by default rather than planned. That is not all. The passing of the baton from one generation to the next is often clouded by the stakeholders’ differing views and agenda without proper planning, the clashes of views and agendas can pull the business in several directions and this may wreck an otherwise viable business. With so much at stake, business succession planning has to be a priority and should be part of every business planning. There are two main options available to business succession planning, which are; Retention planning, retention of the business within the family circle and buy – sell planning: Selling of the establishment to other business owners or key employees or interested outsiders (William, 2001).

It is a norm in many parts of Asia that succession planning is a sensitive issue to discuss amongst partners or shareholders. This is despite the fact that a successful transition minimizes disruption, ensures continuous profitability and guarantee satisfactory returns to the partners and shareholders.

According to Bernadine (2003), succession planning can be formal or informal. For informal succession planning, an individual manager identifies and grooms his or her own replacement. This is more prevalent in smaller forms. In fact, one survey of 800 small business owners found only that 25% have a succession plan and that only 50% of them have even written it down. Succession planning for family businesses seems to be especially important for the firm to remain successful. This sample must have been large and requires a lot of time. Looking at it, it may be applicable to Asian or foreign business family which may not be a case in the Kenyan context. The local business men from my own experience do not have succession plans, this is clearly indicated when the owner of the business dies. Those who take over the business tend to vandalize it through misappropriations of funds. The percentage of those with succession plans seem to low. When such a scenario is transferred to third world countries like Kenya it will affect performance of a business.

On the formal succession planning Bernadine (2003) continues to say that FSP involves an examination of strategic plans and HR forecasts and a review of data on all potential candidates. The objective is to identify employees with potential and increase managerial depth as well as promoting within the company. In addition, it includes determining and clarifying the requirements of the managerial position and developing plans for how future managerial requirements will be met. It involves behavioral profile matching between the individual manager’s skills, behavioral flexibility, adaptability and the organization’s future needs as depicted by the strategic plan. This is true in that organizations need to stress the inclusion of succession planning in organizations that are ISO complaint such as the Kenya seed company.

Considering the study on 500 hundred firms with succession plans, tended to overlook the issue of communication, motivation and the organizational culture. The idea that organizations spend a lot of time on succession planning efforts of identifying candidates for jobs that may not exist in future is very right but on the side it may not. The organizations will stagnate and may go back to dark ages. May be in future, organizations will have to come up with plans incorporate them into their systems and these will affect performance.

According to Byers and Rue (1997), shows that S.P. is an important tool to assist in the HR planning process. S.P may involve the use of a replacement chart. Replacement chart shows both incumbents and potential replacements for given positions within the organization. To be effective, replacement charts must be periodically updated to reflect changes in scenarios. Succession planning helps in solving crisis in organizations, family businesses and even in the civil service. For example, according to an article in education watch by Tindi (vol 26, August- September 2008), he feels that succession management should be put in place as a policy before college takeovers. The takeovers have led to succession crisis in most tertiary institutions as their immediate former principals have found themselves suddenly jobless or shabbily treated due to lack of clear succession mechanisms. Equally workers at such institutions are left in the limbo wondering whether they would be sent packing or retained by new management. Examples of such institutions are like Kenya Science Teachers College and Kenya Polytechnic which have been taken by Nairobi University. This move affects both the managers and the managed, so as to avert problems in the organizations.

In addition to the above the civil service has also loosened the rigid rules that prevented promotions for star workers as shown by the Daily Nation (Friday September 26th 2008) in which the prime minister’s office has removed.

Nzuve (1999) has identified organizational structure in many forms; simple, complex and rigid or loosely structured, the organizational structure is determined by the fact that an organization is a goal pursuing entity, whose structure shows how activities are organized in order to achieve its goals. Organizational design involves dividing organizational activities into various groups. He goes on to say that there are four types of structures namely functional / bureaucratic or mechanistic, linking pin, project and matrix form. From this, it is of importance that every organization which needs to succeed must have a good structure and Nzoia Sugar Company is of no exception. For the company to operate at required standard, it is of importance that the organizational structure lays emphasis on succession planning. The structures are different and every organization can choose what is suitable for them.

According to what Nzuve (1999) has highlighted on organizational structure, it is complicated compared to what Heinz W. and Harold Koontz (2005) have listed. According to ibid 2005, organizational structure is termed as departmentation. For example, production, clients, students or members who will agree to accept the product or service at a price or and financing (raising and collecting, safeguarding, and expending the funds of the enterprise). It has been logical to group these activities into such departments as engineering, production, sales or marketing and finance.

Though Heinz W. and Harold Krootz (2005), have mentioned the matrix organization, according to them, this (matrix) is another kind of departmentation. From these, I deduce that every company has the mandate to choose the type of organization structure depending on the business.

Job rotation is a very important aspect of succession planning. The organization will have an opportunity to fill vacancies created as a result of promotion, transfer, retirement, death and turnover through job rotation. According to Garry Dessler (2000) and Nzuve (1999) they both show that job rotation is beneficial to the individual as well as the organization. Job rotation being a technique of job training enables management trainees from one department to the other to broaden their understanding of all parts of the business. The trainee often a recent college graduate may spend several months in each department but more commonly gets fully involved in its operations. The trainee learns the business by doing it whether it involves sales, production, finance or some other function.

Looking at the above it appears that job rotation enables one to acquire experience in many fields. At the same time, job rotation motivates as well as enables an individual to fit well in the teams found within the organization. As a result the organization will be in a position to maximize it’s time and resources hence lead to attainment of its goals.

(Gary Dessler, 2000) goes on to say that there are several ways to improve a rotation program’s success. The program should be tailored to the needs, interests and capabilities of the individual trainee and not a standard sequence that all trainees take. The length of time the trainee stays in a job should be determined by how fast he or she is learning and the managers these people are assigned should be specially trained to provide feedback and to monitor performance in an interested and competent way.

This study agrees with Dessler to an extend that, if job rotation has to be practiced in any organization, then it’s important that it’s done on all trainees and each should be handled according to his ability and pace of learning new assignments.

Since Gary Dessler has not identified the types of job rotation, Nzuve (1999) has stated that job rotation in an organization allows workers to diversify their activities, avoid boredom and back monotony. There are two type of rotation: vertical and horizontal. Vertical refers to promotions and demotions. However job rotation specifically refers to horizontal variety or lateral transfers. Horizontal job transfers are supposed to be instituted on a planned basis, by means of a training program whereby the employees spends two or three months in an activity and is then moved on to another job. It broadens employee’ scope and gives them a range of experience. At the same time the organization. One extension of this is called “job pathing", which means selecting carefully sequenced job assignments.

According to Armstrong (2001), performance management can be measured and managed. It has been pointed out by Bates and Holton (1995) that ‘performance is a multi-dimensional construct, the measurement of which varies depending on a variety of factors’. He goes on to say that performance is about achievements on individual basis, it is a record of a person’s accomplishments.

Kane (1996) argues that performance is something that the person leaves behind and that exists apart from the purpose. I agree with Kane since an individual is the one who makes the organization to be what it is if he/she leaves behind a good legacy which will determine performance.

(Bernadine et al, 1995) are concerned “performance should be defined as the outcomes of work because they provide the strongest linkage to the strategic of the organizations, customer satisfaction and economic contributions”. This is in line with what Kane has put across but in different words. The end result is what will determine performance hence achievement of goals. The oxford English dictionary defines performance as the accomplishment, execution, carrying out, and working out of anything ordered or undertaken. This is true in the sense that performance is about what has been done, who has done it and how.

All in all performance as( Armstrong, 2001) puts it, is about outputs/outcomes (accomplishment) but also states that performance is about doing the work as well as bringing out the results achieved. Performance therefore could be regarded as behavior-the way in which organizations, teams, and individuals get work done. Campbell (1990) believes that performance is behavior and should be distinguished from the outcomes because they can be contaminated by systems factors. This is well put by Brumbach (1988) “performance means both behaviors and results. Behaviors emanate from the performer and transitions performance from abstraction to action. Not just the instruments for results behaviors but also outcomes in their own right-the product of mental and physical effort applied to tasks and can be judged apart from the results.

These definitions of performance lead to the conclusion that when managing the performance of teams and individuals both inputs (behavior) and outputs (results) need to be considered. This is the so-called ‘mixed model’ (Hartle, 1995) of performance management which covers competency levels and achievements as well as objective setting and review.

Strategies for managing performance exist to develop a high performance culture and achieve increased organizational effectiveness, better results for individuals, and teams, and higher levels of skill, competence, commitment and motivation. Managing performance is a continuing responsibility for managers and team leaders. It is not achieved by a one year performance appraisal meeting. Individual employees are responsible for managing their own performance that may need guidance and support in doing so (Armstrong 2007). This study agrees with Armstrong since the performance of an individual and organization can only occur in the presence of succession planning. It is up to the effective managers to organize for this. Individuals have to match their career aspirations in the opportunities available in the organizational.

Performance management has come to the fore in recent years as a means of providing a more integrated and continues approach to the management of performance than was provided by previous isolated and often inadequate merit rating or appraisals schemes.

Performance management is based on the principle of management by agreement or contact rather than management by command. It emphasizes the integration of individuals and cooperate objectives as well as initiation of self management earning development plans (Armstrong 2007).

The purpose of performance management aims at providing a means through which better results can be obtained from the organization, teams, and individuals by understanding and managing performances within an agreed framework of planned goals, standards and competence requirements. It involves the development of proceeds for establishing share understating about what is to be achieved and an approach to managing and developing people in a way that increases the probability of achieving in short and longer term. It is owned and driven by line management. It is true that better results can be obtained through succession where individuals are well equipped with the knowledge and skills for them to become relevant. This will depend on effective managers. Performance management is concerned with satisfying the needs and expectations of all the organizations stakeholders – the owners, employees, customers, suppliers and general public.

In particular, employees are treated as partners in the enterprise whose interest are respected and who have a voice on matters that concern them, whose opinion are sought and listened to. Performance management should respect the needs of individuals and teams as well as those of the organization, although it must be recognized that they will not always coincide. Finally performance management strategy is concerned with communication and involvement. It aims at creating a climate which has a continuing dialogue between managers and members of their teams. This can contribute to the development of a high involvement organization by getting teams and individuals to participate in defining the objective and the means to achieve them.

The concept of performance management and integrative force – as stated by Hurtle (1995) performance should be integrated in the entire business strategy, employee development, and total quality management. Integration can be achieved vertically and horizontally. Horizontal integration means aligning performance management strategies with other HR strategies concerned with valuing, paying, involving and developing people.

How long a time does an organization need to perform? It entails looking at the organization from an outside – in and five domains. According to the internet source, research has shown that there are five basic ingredients which separate high performers from their lower performing counterparts. Their strategies are more consistent, clearly communicated and well thought out. Leadership is clear, fair and talent-oriented. Those leaders are more likely to promote the best people for the job, to make sure performance expectations are well known and consistent with the strategy, and to be committed in developing people.

In addition, there is a commitment to the right talent within the organization and while employees are treated as unique individuals, the organization takes a holistic approach to managing and making decisions based on data driven information. This begins with strategic approach to workforce planning. The other aspect is culture. The culture is strong and employees are likely to think the organization is a good place to work. Employees not only adopt well to change, but they also embrace it. High performers also emphasize a readiness to meet new challenges and are committed to innovation.

According to (Nzuve, 1999) he has pointed out that performance appraisal serves many purposes as follows:

It provides a clean understanding to the superior about his subordinates contribution and the capabilities or potentiality to contribute; It helps to identify the strength and weakness and introduce methods to make best use of the strength and to overcome the weaknesses; It enables the organization to locate the problem which may stand on the way of performance so that corrective action may be taken to improve the performance; It provides basis for promotion; It provides basis for setting realistic standards. Performance appraisal is crucial in succession planning and this shows that there are various methods of performance appraisal.

In conclusion it must be emphasized that performance management strategy is not about establishing a top-down, backwards- looking form of appraising people. Neither is it a just a method of generating information for pay decision. It provides a framework in which managers can support the team members rather than dictate to them and its impact on results will be much more significant if it is regarded as a transformational rather than appraisal method Armstrong (2007).

Training needs of individuals are both important to the individual as well as to the organization. To the organization the process of imparting the rightful skill to an individual employee or employees in general it is important in the sense that it tends to uplift increase the organizations productivity profit level. It is with this in mind that any organization would be willing to invest in an individual in terms of training.

To the individual employees training plays an important role in his/her own life in that by acquiring that special skill would enable him/her to develop a career such that one day even when he/she would decide to shift from one organization to another he/she would have identified with. For instance an employee as a general worker in a manufacturing company and after sometime through organization training he would have been identified as plant corporate or driver, such kind of training would easily allow him to look at his career and develop it even further. Such that moving from form A to B perhaps after 3 or 50 years he could easily present himself as competent plant corporate, driver.

According to a paper presented by Isabella Troon (2009) on “Succession planning and talent management”, she has highlighted various issues to be considered in developing potential successors based on new approaches.

The issues are; Recruitment, Talent mapping, work force planning and development, performance planning and Evaluation, Retention.

Recruitment

Is the organization pursuing the right people? How successful is it in attracting the right candidate? Tools such as e-recruitment or onsite application kiosks are a start

The results can be gathered and analyzed to generate benchmarks

And randomized trials can help organizations to track the effectiveness of competing recruiting techniques.

Talent mapping

Given the organization’s business focus and strategic direction, what mix of talent and skills will help it to execute successfully?

If the talent mix is absent, how can it be developed or acquires?

Working with line and senior management, HR executives should develop recruiting strategies and design training programmes that focus on existing or emerging needs.

Work force planning & development

Much of the work of the HR function focuses on getting the organization’s human capital from its current state (where it is now) to some future state (where it needs to be)

These efforts can be documented and tracked by: Creating detailed workforce planning and skills gap assessments.

Identifying high potential personnel (and following through with additional development and retention services; and adopting more flexible development programmes and reaching a broader audience through e-learning

Performance and planning evaluation

Employees who understand where they add value do a better job of adding value

And managers, who clearly communicate what they expect from their employees, and how these expectations tie into compensation, help employees become more engaged and effective.

Retention

Identify the early warning signs of employee defection, in time to act, evaluate the degree to which various combinations of incentives influence behavior and retention, establish an optimal budget for rewards and establish a formal learning and development plan for all employees as well as track progress by individuals or groups of “like” employees. Companies which have integrated mentoring and coaching in succession planning and leadership development have experienced talent retention and organizations transformation.

Coaching and mentoring are important in succession planning. They encourage a culture of learning and mutual help and combine both individual and organizational development. According to Gary Dessler (2000) coaching involves one individual helping another to unlock their natural ability to perform, learn and achieve to increase awareness of the factors that determine performance to increase the sense of self – responsibility and the ownership of their performance, to self coach , to identify and remove internal barriers to achievement. Coaching is a growing practice in developed countries which other developing countries need to adopt. With coaching one is able to perform better and be able to be earmarked for promotion and transfer to other sections. In coaching the person is left to perform most of the work, the coach is only a facilitator and catalyst. A coach connects a person with his/her passion, purpose, values and other critical aspects of their ideal work. They enable the client build their own capability by increasing client’s awareness, purpose, competency and well being regarding their desired work.

Looking at the above it’s possible that if a worker has been under a coach, it’s very easy for one to be noticed for any eventuality. If one has the potential for a job vacancy created as a result of promotion, retirement, transfer, death among others, it will be easy to replace. In this case, the coach to be successful, he/she has to work closely with the client (junior) he/she is also supposed to be knowledgeable and skilled. The other aspect noticed about coaching is that, it has to be in line with the ones career direction, the coach has to be interactive, catalyst thus, one who precipitates a process or event. As a coach one has to precipitate the process of learning. He/she should be a facilitator, one who makes things to appear easy, and be able to build capacity. From what Gary Dessler (2000), it’s clear that a coach is a special person in an organization, he/she has to be available, be totally committed since it’s not an easy exercise.

Mentoring goes hand in hand with coaching as Kaila points out. Mentoring is a process whereby one senior individual is available to a junior – to form a non – specified development relationship, to seek information, to regard as a role model, to pick out what the organization works to ensure cultural compliance, to guide a performance through a phase of operational, professional or vocational qualification to provide feedback and appraisal and to teach all the relevant facts that will enable the junior employee to perform effectively in an organization. In the workplace, mentoring normally consists of teaching, giving feedback, coaching on the job, counseling through change and structuring on going contact over a designated period.

From what (Dessler, 2000) has on mentoring, it’s just supporting what (Kaila, 1999) has provided. For the former, a mentor is someone who should be given a mentoring opportunity. He has shown that there has to be two important people for mentoring to take place i.e. the mentor and the protégée. In organizations, mentoring can be formal and informal.

Informally, the middle and senior level managers will often voluntarily take up – and – coming employees under their wings not only to train them but to give career advice and to help them steer around political pitfalls. Particularly where the interest is creating diverse work teams, and increasing the opportunities for networking and interactions among diverse groups of potential protégées and mentors can increase the opportunities for mentoring relationship to emerge.

However, many employers have formal mentoring programs. Here employees encourage mentoring relationships to take place and may pair the protégées with potential mentor. This can be done through training manuals which can be provided to facilitate the mentoring process. It is possible to point out that it depends on the organizational programs and the management in designing the type of mentoring program. According to Dr. Shirley Peddy, the author of the art of mentoring, points out that the two forms of professional development are coaching and mentoring. Mentoring is an old practice which has been used successfully in countries such as U.S.A, U.K, companies like British airways, and BP and even Cadbury’s and Mcvities (united Biscuits) informal mentoring is endless. Then it’s clear that even if it’s an old practice it doesn’t mean that it cannot be applicable to modern organizations, as the saying goes that “old is gold”.

From the informal and formal aspect of mentoring, then its imperative to note that this process has certain objectives as follows; the main objectives is to improve staff performance that generates subsidiary aims such as; increase enthusiasm and commitment, to improve productivity and loyalty, Encourage flexibility and persistence, Facilitate teamwork and mutual support, allow adaptability and responsiveness to change, Inspire vision and purpose, facilitate staff motivation and to increase confidence, happiness and self esteem of the staff.

Mentoring improves retention of good employees: Mentoring is a demonstration that personal development is valued. It is an investment, a commitment of employee retention is the top reason given why companies start mentoring program according to a managers survey by Manchester inch in March Kaila (1999). Mentoring breeds success for example 64 companies which have succeeded have mentoring program. Mentoring increases productivity: the rewards of mentoring amount to more than just a warm fuzzy, feeling from helping your fellow man. It builds loyalty among co-workers; Mentoring is more than corporate; it can help co-workers to better understand one another and encourage team building and a sense of employee ownership. It helps a junior colleague learn from others mistakes without having to make them.

By limiting the application of 30% women rule to new appointments to Government, the executive has put itself in a bind: it is not always possible without unacceptable acts of affirmative action, to include women in large number in now appointments. There are, and always will be, other considerations, thus with a conscious effort to hope in qualified women, progress is possible in increasing female representation at senior levels, but this cannot have a major impact on overall numbers of female leaders.

The proportions of women to men in many corporations and departments are such that even a diligent application of the rule to senior appointments will only lead to gradual change. The solution lies in drawing much large numbers of women at entry levels, not merely asking to nominate more women. If their recruitment stage, at which qualifications and skill levels for men and women are not yet dissimilar, in time there would be inevitable rise in women at senior levels, poor pay also affects the number of women. This has been evident in state law office, one of the few departments where an even split has obtained. Unfortunately the untold story is that it is the relatively low pay that contributes to these figures. Attempts to improve women’s participation in the public sector must go beyond tokenism. They must consider all pertinent factors that hold back junior employees and what measures are needed to grow new leaders.

(The Standard June 24th 2009)

2.3.7 Other Sugar Companies

Apart from Nzoia, there are other sugar companies in Kenya such as Mumias whose establishment was in 1971 as a government project. The major objective of establishing Mumias sugar company were to provide a source of cash income for farmers, create job opportunities since there was no major industrial undertaking in the area at the time, curb rural-urban migration, reduce overdependence on importation and aim at self-sufficiency in sugar production and the company was also expected to operate on commercial basis and make profits. Sony Sugar Company established by Mehta Group International in 1979 who changed to Booker Agricultural International in 1985 and reverted to a wholly Kenyan team in 2000.ChemelilSugar Company situated in Nyando sugar belt was incorporated on 5th July 1965 as a limited company. The sugarcane factory is located in Nyando district, 50km from Kisumu City. The other one is Muhoroni Sugar Company Limited was incorporated in 1964 as East Africa Sugar Industries Limited and started operations in 1966 with initial capacity of 850TCD.

2.3.8 Private Factories

Private factories are Kibos &Allied Sugar, Butali SOIN and West Kenya Sugar Companies

From the reviewed literature, it’s evident that avoiding to make succession planning a corporate strategy can prevent an organization from business success. Thus the study is necessary to fill the literature gap and to examine the relationship between succession planning and organization performance in the Kenyan context.

The aim of the study was to examine the effect of succession planning on organizational performance. The study attempted to answer the main question which was: what is the effect of succession planning on organizational performance? This chapter contains descriptions of the research design, study area, target population, sample size, sampling procedures and data collection instruments.

This study adopted mixed methods research best suited to understand the relationship between succession planning and organization’s performance. A key strength of qualitative research is the ability to give the researcher a comprehensive perspective of the phenomenon under study (Babbie, 2007), facilitating the discovery and understanding of actions, beliefs, decisions and recognition of nuances in attitudes and behavior that cannot be easily detected by quantitative methods (Babbie, 2007; Creswell, 2009).

The study was carried out at Nzoia Sugar Company Limited which is found in former Bungoma District in Western Province. It is situated off Webuye /Bungoma road. In this area sugarcane is grown on a large scale. The company deals with production of sugar. The people around Nzoia are mixed farmers. They keep cattle, goats and sheep; they grow maize, beans, banana, sweet potatoes, cassava, millet, sorghum but mainly for subsistence. The other main cash crop grown is coffee. Nzoia sugar was selected due to its appropriateness in meeting the study objectives and Nzoia sugar company limited (NSC) is one of the key players in Kenya sugar industry .Nzoia Sugar company is located in Bungoma County, Bungoma South District,5 kilometers from Bukembe, off the Webuye- Bungoma highway. The company serves over 67,000 farmers in the larger Bungoma,Kakamega,Lugari and Malava District. It is situated at a latitude of 0*35’ N and a longitude of 34 40’ E, and an altitude of between 1420-1490 meters above sea level.

The Company was established in 1975, under the company’s Act Cap. 486 of the law of Kenya with memorandum and Articles of Association and issued a certificate of incorporation No.C13734 dated first August, 1975. The Government is the majority shareholder owning 98% shares while Cail Babcock (FCB) and Industrial Development Bank owning the remaining.

NSC produces sugar and supports cane production through the provision of extension services to farmers with an extensive Company Nucleus Estate covering 3600 ha and an out grower zone spanning more than 23,500 ha of cane.

Annual rainfall experienced by the company ranges between 1500-1800mm and air temperature between 13”C-32”C. The company is endowed with water resources from Chalicha springs and river Kuywa, which traverses its Nucleus Estate. The permanent water source is not only critical for factory production and domestic use but also for the community surrounding the company. The soils are predominantly loamy predominantly loamy. Sandy loams are mainly found on the uplands while loams are found on the lowlands.

The study targeted junior staff and managers of all sugar companies in Kenya but due to a large coverage, Nzoia Sugar Company was selected to represent a general target population.

Stratified sampling technique was used to determine the sample size. Stratified sampling is a process in which the units in the sample are proportional to their presence in the population (Koul, 1992). The 612 employees of Nzoia Sugar Company were stratified into two strata as unionized employees and senior managers. Form a target of 600 unused employees 192 were selected from 5 departments and 5 managers.

Respondents	Population (n)	Sample population (n)	%
Unionized	600	192	32.00
Seniour managers	12	5	41.6
Total	612	197

Questionnaires were the main data collection instruments. The data collected was qualitative in nature.

The questionnaire was divided into two parts. Section A consisted of six items that sought information on the background information of the unionized employees. While section B consisted of thirteen items that solicited information on the effect of succession planning on organizational performance. The questions were closed, Yes/No and open ended.

The questionnaire was divided in to two parts. Part A sought to get information on the background information of the managers while Part B which consisted of 19 items sought information on manager’s knowledge on succession planning.

Rukwani Mutea (2007) has defined validity as the accuracy and meaningfulness of inferences, which are based on research results. Validity is a degree to which results obtained from analysis of data actually represent the phenomenon under study. The validity of the instruments was determined by discussing them with the supervisors whose advice was used in making the necessary changes.

Olive and Abel Mugenda,(2003) have defined reliability as a measure of the degree to which a research instrument yields consistent results or data after repeated trials. To establish the reliability of the research instruments, pre-testing through piloting was done in West Kenya Sugar Factory. Feedback from here assisted the researcher to revise the questionnaires to ensure it captured the objectives.

Primary and Secondary data was collected. The main instruments were structured questionnaires which involved the use of pre-determined questions. The structured questionnaires were both for junior employees and managers.

This research used questionnaires as the main tools for collecting information. The selection of these tools was guided by the nature of data that was to be collected, the time available as well as the objectives of the study.

For instance questionnaires were used since the study was concerned with variables that could not be directly observed like views, opinions, feelings and attitudes. The sample size was also quite large and given time limits, questionnaires would serve best. Again the target population was literate and therefore unlikely to have difficulties in responding to questionnaires.

The instruments were distributed to the respondents through the help of the training manager. After receiving the questionnaires from the training manager, the researcher verified to establish the number collected and whether they were duly filled.

Out of 204 questionnaires, only seven were not returned.

This study also examined critically the available documents which include books, articles and journals with related information. The researcher mainly used Margaret Thatcher Library of Moi University in Eldoret Kenya and the internet.

The process of data analysis involved breaking down the data then conceptualizing and putting it back together in categories and subcategories (Backman & Kyngäs, 1999). The transcriptions were initially subjected to open coding, a rigorous line by line examination of the data to identify “codable moments” which were subsequently categorized and labeled, and from which themes and ideas eventually emerged (Emerson, Fretz, & Shaw, 1995; Maxwell, 2005). Through a process of axial coding, the emergent categories were compared with data and existing succession planning theories to identify any explicit connections to cause and effect relationships and between categories and sub-categories. This process involved exploring relationships between categories to understand the experiences to which they related.

In a third phase of coding (selective coding) core categories were selected, identified and systematically related to other categories. This involved validating the relationships, and filling in, refining and developing the selected categories. The categories were then integrated to arrive at a grounded theory about the role of different stake holders implementing succession planning and its impact in organizational performance. Excel spreadsheets were used in coding, systematically organizing themes, patterns and variations in the data. Moreover, SPSS statistical package was used to determine the correlation and regression results. In the initial reading words, sentences, and paragraphs were given descriptive labels. Coding was conducted both manually and facilitated by Qualrus, a coding software. Data was analyzed descriptively using Statistical Packages for Social Science (SPSS). Descriptive statistics included the use of frequencies and percentages based on the objectives and research questions. Data was presented through tables, pie charts and bar graphs.

The Research permit was obtained from National Council for Science and technology Nairobi, Kenya. An introduction letter was attached to the questionnaire, indicating that the data was meant for academic work and questionnaires for both unionized employees and senior managers did not require the respondents to indicate their names.

This chapter deals with data analysis, interpretation and presentation of the study findings. The purpose of the study is to find out the succession planning and organization performance in Nzoia Sugar Company, Kenya. This was achieved by the following objectives;

To highlight the factors considered in identifying potential successors in the organization.

To establish programmes the company introduced to develop potential successors.

To assess the challenges faced in using succession planning in Kenyan corporations.

To explore ways of improving succession planning in determining organizational performance.

4.1 Demographic Information Of Respondents

ITEM		FREQUENCY	PERCENTAGE (%
Gender	Male	147	66.6
	Female	45	33.4
	Total	192	100
Age category in years	20-30 31-40 41-50 51-60	42 57 53 40	21.8 29.6 27.7 20.9
	Total	192	100
Level of education	Basic ‘O’ level ‘A’ level Diploma Degree	06 121 8 48 9	3.1 63.0 4.2 25.0 4.7
	Total	192	100
Marital status	Single Married Widow	43 148 1	22.7 77.1 0.5
	Total	192	100

Source: Research 2009

The table 4.1 above show that 66.6% (147) of the respondents were male while 33.4% (45) were female. 21.8% (42) were between the age of 20 – 30 years, 29.6% (57) between 31 – 40 years, 27.7% (53) between 41 – 50 years while 20.9% (40) between 51 – 60 years.63.0percent (121) of the respondents had reached at 0 level, 3.1% (6) basic education, 4.2% (8) at A level, 25.0% (48) had diploma while 4.7% (9) had attained degree. It is from the table that 22.7% (43) of the respondents were single, 77.1% (148) were married and 0.5% (1) was a widow. The findings reveal that gender equity has not been achieved in filling vacancies. The number of women is lower than those of men, implying that men have a higher chance to be included in the succession plan. The ages reveal that those between 51- 60 are the ones preparing to leave the organization, so those to be prepared to fill the key vacancies are 51 and below.

The level of Education is worrying in the sense that it appears those with ‘0’ level have higher chances to be included in the succession plan. On marital status, it implied that married stood more chances of becoming successors.

Figure 1: Year Of Employment

Year of employment

Source: Research 2009

The findings in figure 1 indicated that the year of employment was crucial when determining the employees to be included in the succession plans. This gave the number of employees who were ready for promotion, those to retire and those who could be transferred from one department to another. Therefore this helped the management to perfect the career progress of the employees.

succession planning entails	Frequency	Percentage
Strongly agree	53	27.6
Agree	92	47.9
Undecided	35	18.2
Disagree	12	6.3
Total	192	100

Source: Research 2009

It is seen from table 4.2 above that, 27.6% (53) of the respondents strongly agreed that succession planning entails identification of vacancies in higher ranks locating probable successors, 47.9% (92) agreed, 18.2% (35) were undecided and 6.3% (12) disagreed. The findings from Table 4.2 revealed that majority of the employees understood the meaning of succession planning.

Descriptive frequency distribution on relationship between succession planning, promotion, transfer, retirement and termination in Nzoia Sugar Company. The respondents were to indicate Yes and No to show how the below HR practices had been affected.

Source: Research 2009

The findings in Table 4.3 implied that those who agreed with promotion were 93.8%, while 6.2% did not. On transfer 17.2% agreed, 82.8% disagreed, retirement 74. 5% disagreed while 25.5% agreed. While on termination 21.4% agreed while 78.6% disagreed the findings implied that the above HR practices had a role to play in succession and performance of the company. The findings were in attempt to answer question one concerning the factors the company management considered when identifying successors. In relation to the study, promotion was a major reason for vacancies in Nzoia Sugar, while transfer, retirement and termination were not common. This enabled the company to maintain its productive workforce.

Descriptive and frequency distribution on vacancies. The Researcher enquired from respondents if there was communication about vacancies, intervals of communication, duration taken to fill vacancies and the company had plans for this. The findings were as follows:-

Source: Research 2009

The findings in table 4.4 implied that communication of vacancies was 85.4% Yes, 14.6% disagreed. Intervals of communication analysis always were 61.4% while 38.6% rarely. On the duration the company took to fill vacant positions, 63.3% yes, 31.8% No while existence of plans 82.2% No and 17.2% yes this implied that communication, intervals the duration and the existence of succession plans were crucial on the performance of Nzoia Sugar Company. The majority indicated that company took long to fill vacancies an indicator that they lacked proper mechanisms for succession planning. The second objective which the findings addressed was the problems which the company faced in succession planning. Communication enabled all employees to be informed about vacancies. Communication on the same was done always and this enabled the company to fill vacancies though it took long.

Descriptive and frequency distribution about factors considered in employees who were suitable to occupy vacant positions. The findings were as follows:

Source: Research 2009

It is seen from table 4.5 that 99.5% strongly agreed that performance is Factor considered in filling vacancies while 0.5% (1) disagreed. 98.9% (190) of respondents agreed that skills is a factor considered in filling vacancies while 1.1% (2) disagreed. 41.7% (80) agreed that experience is a factor considered in filling vacancies while 58.5% (112) disagreed. 65.1% (125) said that organizational needs is a factor considered in filling vacancies while 34.9% (67) disagreed. From the findings in table 4.5 there is a clear indication that the vacancies were filled by those who were performers, skilled and those who ensured the achievement of organizational needs. This also implied that most of the potential successors came from within.

These findings helped in meeting the research objective one which required respondents to indicate factors which were crucial in succession.

Descriptive frequency distribution on promotion and the period of promotion. The respondents were required to indicate whether they had any promotion and the year. The findings were as follows.

ITEM	Response	Frequency	Percentage
Ever promoted	Yes	151	78.6
	No	41	21.4
	Total	192	100
Period of promotion	1985-1990	18	9.4
	1991-1995	27	14.0
	1996-2000	35	18.2
	2001-2005	43	22.4
	2006-2010	69	36.0
	Total	192	100

Source: Research 2009

Table 4.6 revealed that 78.6% had been promoted while 21.4% had not. This implied that promotion may have led to creation of vacancies in the company. Concerning the period of promotion, the number of employees was increasing as the years progressed. This therefore showed that every year there were vacancies created & employees promoted.

Descriptive and frequency distribution of techniques used in succession planning in Nzoia Sugar Company. The respondents were to indicate whether monitoring, coaching and job rotation were used. The findings were as follows.

Source: Research 2009

From the Table 4.7, it is revealed that mentoring was 50.0% used, always used and rarely used 19.8%, not sure and do not know 30.2%. On coaching 17.2% always used and, rarely used 12.0% and 70.8% not sure do not know

While on job rotation 94.3% always used and used, rarely used 2.1% while 3.6% not sure and do not know.

The findings implicated that majority of the employees supported mentoring coaching while coaching had a lesser percentage. This showed that mentoring coaching and job rotation influenced succession in the organization. The revelation was in line with the research objective three which aimed at identifying programs the company had introduced to develop the skills of potential successors.

Descriptive frequency on the benefits of monitoring and job rotation on employees.

The findings were as follows;

Table 4.8, the researcher established that learned about company policies was 63.0% important, 37.0% not important, skill improvement, work efficiency & attracting customers 30.7% important, 69.3% while 46.4% not important. This implied that coaching, monitoring and job rotation were beneficial work efficiency and attracting customers was not important.

Therefore this revelation was important since it provided information to management on which HR Techniques could influence the behaviour of employees to be included in filling vacancies.

Figure 2: Descriptive and frequency distribution of mentoring, coaching and job rotation on the company. The findings were as follows: