Succession planning in India
As Sebi ushers in a new regime for listed companies on corporate governance, experts feel a proper succession planning programme is largely lacking among Indian firms and this could adversely impact their results. Overhauling the way listed firms and their top executives are governed in India, market regulator Sebi has asked them to put in place proper succession planning for top management and board positions, in line with best global practices.
The experts in human resources arena, however, say that succession planning at Indian companies remain mostly poor and a large number of them being family-owned or family-run enterprises make it even more difficult.
There is a need to develop succession planning in the organisation as a constant rather then a reactive process, they say. According to international executive search consultancy Alexander Hughes’ Supervisory Board Chairman Maurice Rozet, it is not as natural in the mind of an Indian company to use an executive search company to fill up the leadership positions as their global counterparts.
Source: Press Trust of India | New Delhi February 16, 2014