Issues Related to Succession Planning

Added on - 13 Sep 2019

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Running Head: Case StudyCase Study
Case Study1IntroductionIn this present paper, we will discuss the case scenario which states that one person should sharetwo titles that are chairman and CEO of the company or not. The research has been taken placein order to come up with the conclusion whether the companies should make two titles shared byone person or appoint two different people as CEO and Chairman.Generally, a company should have different persons for two titles such as CEO and Chairman.There are several reasons which are discussed in this case study to support that there is an urgentneed to appoint two different people for two different positions in a company.If there is a single person sharing two positions or one person having the two responsibilities thatthere might be chances those actions will be unmonitored and it will also create conflicts in theorganization. Having the same person in two different positions may create the chances ofcorruption in an organization. The single person holding two positions will create the problembecause an entire decision of the company will totally lie in the hands of one person and thatperson have total authority over every single decision that is related to the company. This willcreate the critical issue for Board of directors to judge his objective as well as performance.By having two persons for two separate entities will enhance in maintaining the separate roleswhich are necessary for running the enterprise separately. Supposed CEO is busy looking afterday-to-day work and then Chairman could look after the regulatory compliance. If CEO of theorganization is somewhere stuck in the meeting then important decision related to recruitment ofboard of members can be looked by the chairman of the company. The Chairman and CEO canlook after critical issue that is related to succession planning.The CEO and Chairman together help in running the organization smoothly. Both people cananalysis the things better and could take better decision for the company. The separate roles oftwo persons are important in order to bring efficiency and effectiveness to an organization. Ifthere are two separate people in an organization it will help to maintain the adequate balance ofpower. The researchers say that if there are two people having two different roles than it has beenmarked that there is continuous organizational growth. There would be the proper structure ofcorporate governance. In leading companies belief of that company is that two separate role help