Ranbaxy

HUMAN RESOURCE MANAGEMENT

Topic: Succession Planning at Ranbaxy

Introduction:

Succession Planning is defined as “identifying future potential leaders to fill key positions”.

Succession Planning is a major part of any business as it is a smooth transition of ownership & management from one generation to another. It is

* Conceptualizing & to document a succession plan

* Grooming the next generation to take up the assigned role in business.

Succession Planning is very essential for any business, be it family owned or Managed by professionals. It is the process of identifying and preparing suitable employees through proper training and job rotation to be able to replace the top-level management in an organization, as their term would expire. In certain case the company does hire qualified person from outside to replace the key person of the company. Succession planning should help the company meet Strategic and organizational challenges.

Drawbacks in family business due to lack of Succession planning:

* Absence of smooth transition

* Unwillingness to give up control on position held

* Miscommunication about succession among family members

* Sibling rivalry

* Wrong candidate chosen for succession

* Unprepared successor

Gist on Case Study: Succession Planning at Ranbaxy:

On having a basic idea of what Succession Planning, we now look into the Succession planning of Ranbaxy Laboratories Limited – An Indian Multi-national Pharmaceutical Company.

The Case study discusses the CEO succession planning & the controversy at the Ranbaxy Company. It helps us understand the importance of succession planning & in managing companies. The case discusses the how Mr.Parvinder’s (Promoter & CEO) believed in running the company professionally & how his decision to appoint Mr.D.S.Brar was opposed by family members. We will then look into the development with Mr.Brar as the CEO & the reasons behind his decision to step...