Assessing The Impact of Succession Planning on Organizational Performance

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.