.11 TFW 3:52 PM in Aa MANAGING TALENT P&G; Stumbles at Succession Management Con
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.11 TFW 3:52 PM in Aa MANAGING TALENT P&G; Stumbles at Succession Management Consumer products giant Procter & Gamble made headlines recently when CEO Robert McDonald retired and was replaced with former CEO A. G Lafley. McDonald's retirement was not a surprise, because P&G; had struggled to recover since the recent recession dampened sales of P&o; s premium brands such as Tide detergent and Pampers diapers. What did surprise observers was that the company brought back a former CEO-implying it had not prepared anyone to move into the CEO's position Lafley previously served as CEO from 2000 to 2009 during which time he gained a reputation for promoting innovation and for leading a successful international expansion. He mentored McDonald, who was chief operating officer when Lafley retired However, McDonald did not hold position him practice in setting strategy or leading organizational change; he focused on managing s that gaveExplanation / Answer
Answer 1)
The Human Resources Department could improve over all retention of the firm and encourage tenure and long term thinking by facilitating growth. Having a large pool of talented employees who've been with the firm from long term will hep the board find their CEO's successor well ahead of time.
How Employee Retention and Growth are related
The ERG theory of motivation stands for Existence, Relatedness & Growth. This is a more simplified and concise version of Maslow's theory of motivation. Existence involves everything that an individual or a group of individuals need for basic survival and everyday need, such as food, clothing , shelter, affection etc. While relatedness has more to do with societal, emotional and psychological needs such as relationships, friends and family. peer groups from social institutions such as universities, offices etc. Growth involves fulfilment, internal satisfaction with work, life choices, self improvement and the gratification that comes form that.
The human resources department could allow employees to also participate in open module training programs to improve retention, talent development and cross departmental mobility. This would allow employees to train and develop skills that may be useful in any other department that they aim to migrate to. This would improve career mobility in the organisation and reduce career stagnation.
Training Programs
Training programs ensures that employees stay relevant to the organisation they work for and benefit both management and employees.
Employees can stay competent by
- Self Improvement
- Adding new skills and qualifications
- A good learning curve
Benefits to the Management from an Employee's competence
When the follower stays competent, he or she is bound to be relevant to the organisation not just today but also in the long run. This builds trust within a follower that he or she has a place in this organization for the foreseeable future. This incentivises followers to perform better.
Benefits to Employees from their own competence
The benefits stretch right form job security to potential career growth and lateral and horizontal career moves. Followers who stay competent open themselves up to a broad stroke of career opportunities.
Answer 2)
MC Donald did not have cross functional training. CEO's require more broader and generalistic skill sets instead of linear one. Liner skill and hyperspecialization may be useful within a specific department or line of business but fall short of relevant skills when applied to the organisational hierarchy as a whole. The developmental approaches that were a part of the training programs that MC Donald took were more linear in nature. He was more of an operations guy and had little of not experience in leading key management positions. The approach that i would recommend P&G executives would be to improve long term retention. to focus on career development and most importantly allow employees to participate in any training program of their choice rather than just fine tuning their skills for the department that they work in.
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