Retirement Planning & Succession – Page 3 – Vitiyagyan – English

What is the first step in succession planning?

The first step in succession planning is to identify the positions that are integral to the company’s success. These are the positions that, without successors, will cause the company’s growth to slow or stop. In most cases, the higher they are on the chain of command, the more crucial it becomes to name a successor.

What should be in a succession plan?

We’ve come up with the 4 crucial “must-haves” in your plan:

Understand Strategy & Structure. In order for succession planning to be effective, you should know what your organization’s goals and interests are.
Evaluate Employee Skills.
Training and Development.
Provide Recognition and Advancement Opportunities.

What are some difficulties that succession plans may face?

Some difficulties that succession plans may face are:

Employees may leave for better salary and benefits elsewhere due to a lack of financial resources.
Improper training and development may lead to promoting unprepared employees to higher positions.

Why is it essential for small and medium-sized businesses in India to have a succession plan?

Small and medium-sized businesses in India, in particular, should develop a secure succession plan, otherwise, they risk going out of business. One cannot run a business, no matter how big or small, unless talented people are ready to step into key positions when the current occupants leave. If a proper succession plan isn’t in place, even the most successful companies can fall over a cliff. It assists your company in preparing for any eventuality by preparing high-potential employees for promotion.

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country. The Institute, functions under the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the second largest professional body of Chartered Accountants in the world, with a strong tradition of service to the Indian economy in the public interest.

The affairs of the ICAI are managed by a Council in accordance with the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council constitutes of 40 members of whom 32 are elected by the Chartered Accountants and the remaining 8 are nominated by the Central Government generally representing the Comptroller and Auditor General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs, Ministry of Finance, and other stakeholders.

Visit The ICAI Website

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