Abstract:
The study aimed to assess the impact of succession planning on organizational performance at
VisionFund Tanzania Microfinance Bank Limited in Tanzania. Using a correlational research
design, the study explored succession planning factors, assessed indicators of organizational
performance, and established the relationship between succession planning and organizational
performance. Data were collected from a targeted population including management team
members, line managers, HR professionals, and other employees, totaling 53 respondents. The
study employed purposive and simple random sampling techniques and utilized self
administered questionnaires distributed via email for data collection. Data analysis was
conducted using SPSS software, presenting the results through tables and charts. The findings
revealed that various factors, such as job rotation initiatives, workforce planning alignment,
organizational culture, retention strategies, communication practices, and leadership
involvement, were integral to succession planning at the bank. Additionally, the study identified
areas for improvement in adaptability to external changes, leadership clarity, and technological
alignment within the organization, highlighting the need for specific strategies to ensure
sustained organizational effectiveness. The study established a substantial alignment between
succession planning and organizational performance. The study concluded that there is a
positive correlation between succession planning and organizational performance. The study
recommended the implementation of initiatives aligned with identified succession planning
factors, refining and updating succession planning strategies based on industry trends, and
fostering awareness and understanding among line managers.
