Succession Planning and Management Practices Among Private Sector Firms in Malaysia
Succession Planning and Management Practices Among Private Sector Firms in Malaysia
Succession Planning and Management Practices Among Private Sector Firms in Malaysia
JUNE 2008
Succession Planning And Management Practices Among Private
Sector Firms In Malaysia
June 2008
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ACKNOWLEDGEMENTS
I would to take this great opportunity to express my sincere appreciation and gratitude to
my project supervisor, Associate Professor Dr. Abdul Latif Haji Salleh for his guidance,
Similarly, my special word of thanks to all my lecturers who have taught me during the
tenure of my MBA study at the University Of Malaya. Their valuable guidance and wise
My sincere thanks is also extended to Professor Dr. Tracy Taylor (Associate Dean,
Teaching & Learning), University Of Technology Sydney, Australia for all the help given
in so many ways, especially to ensure that I have selected the appropriate research
instruments to conduct the research. Also, many thanks to my head of department, Puan
Rozilawati Mohamad Zawazi for her understanding and kind cooperation in granting me
annual leave whenever possible in order for me to complete all my coursework and
exams.
This acknowledgement would not be complete if my sincere thanks are not extended to
all those respondents who have participated in this survey. Indeed, I felt very obliged to
them for sacrificing their time and efforts to complete the questionnaires.
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I would also like to extend my gratitude to all my good friends; Ms. Bel Lew, Ms. Uma
Jogulu, Ms. Ng Lee Bee, Ms. Melissa Moey, and Mr. Brandon Wong for their various
forms of support, cooperation and commitment towards ensuring the success of this
research project.
Last but not least, to my dearest mum, Madam Nagaratnam Raju and my sister Ms. Uma
Devi, I truly cherish your love, support, encouragement and faith in me to complete the
MBA programme.
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ABSTRACT
Purpose
Design/Methodology/Approach
Managing Directors/CEOs and HR professionals of 108 private sector firms from a cross-
section of manufacturing and services sectors have participated in the survey, which
contributed to a response rate of 26.1%. The framework of succession planning
characteristics and organizational outcomes are adopted from the work of Rioux &
Bernthal (1999).
Findings
The findings show that on average firms in Malaysia employ an effective succession
planning system. A formal succession planning is practised in 56.5% of the firms which
are mostly large firms. Company growth and desire to improve business results are two
main reasons why succession planning is important for private sector firms in Malaysia.
The results of the study indicate that no significant difference is found between
succession planning characteristics and demographic variables. The Pearson’s correlation
and regression analysis also show that succession planning characteristics are significant
in determining the organizational outcomes. The hypothesis that there is a significant
relationship between succession planning characteristics and demographic variables are
only partially supported. Similarly, it is only partially supported to the claim that, there is
a significant relationship between organizational outcomes and demographic variables.
Practical Implications
The present study offers an empirical finding on practices and approach of succession
planning and its impact on organizational outcomes in the context of Malaysia.
Originality / Value
Overall, the present study adds value to existing literature by examining the influence of
demographic/control variables in determining the relationship between the succession
planning characteristics and organizational outcomes.
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TABLE OF CONTENTS
PAGE NO.
ACKNOWLEDGEMENTS iii
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF TABLES ix
CHAPTER 1 : INTRODUCTION 1
1.0 Chapter Overview 1
1.1 Introduction 1
1.2 Purpose Of The Study 5
1.3 Importance Of The Study 6
1.4 Objective Of The Study 10
1.5 Scope Of The Study 11
1.6 Limitation Of The Study 11
1.7 Organization Of The Study 13
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CHAPTER 4 : RESEARCH RESULTS 49
4.0 Chapter Overview 49
4.1 Response Rate 49
4.2 Characteristics Of The Demographic Profile 50
4.3 Characteristics Of The Succession System 54
4.4 Mean Analysis 59
4.5 Internal Consistency Reliability Assessments 63
4.6 Independent Sample T-Test 64
4.7 Factor Analysis 70
4.8 Pearson Product-Moment Correlation 77
4.9 Multiple Regression Analysis 82
BIBLIOGRAPHY
APPENDICES
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LIST OF FIGURES
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LIST OF TABLES
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TABLE TABLE TITLE PAGE