FACTORS THAT INFLUENCE SUCCESSION PLANNING IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this research was exploring factors that influence succession planning program in commercial bank of Ethiopia. To realize this purpose the research primarily focused to address the pressures enforced the bank to develop succession planning program; criteria used to select the successor, factors that influence succession planning program and test association between selection criteria and factors that influence succession planning program. For this purpose all 82 respondents who are directly participating in the succession planning process were selected for the census survey. Structured questionnaire was distributed to them and unstructured interview for two managers. The data received from them was analyzed by using descriptive and inferential statistics. To test the research hypothesis two tailed t- test at 95% confidence interval was used and the associations between successor selection criteria and significant factors influence succession process were measured by using Chi-squire. The test result and finding of the study indicates that: management support and assigned budget to the program were positively influence the succession planning program of the bank whereas problem on proper developing and mentoring program, use of advanced technology to support succession planning program and succession planning related organizational culture of the bank negatively influence the program. Except technological advancement there were significant association between selection criteria and significant factors that influence succession planning program of the bank. So that the bank should have looked all influential factors and make succession planning systematic.