Reference no: EM133143198

Binger Limited specializes in manufacturing wooden office furniture which is in great demand because its original modern design suits the Jamaican market. This company has been in operation for 35 years, has been listed on the stock exchange for the past 10 and employs 50 people. The Chief Executive Officer (CEO) and the Director of Human Resources have just made final changes to a detailed succession plan for Binger's employees based on a three-year horizon. Three major points have emerged from the succession plan as follows:

1. The General Controller plans to retire within the next year and no one in-house is qualified to replace him. In addition to his specific financial skills, he has the company's financial history readily available and is the CEO's right-hand man. In fact, the CEO consults him for every strategic decision he has to make. Since Binger is a public corporation, this position is crucial for continuation of smooth operations.

2. The Director of Manufacturing (DM) joined the company 30 years ago as an Administrative Clerk. He gradually moved up through the ranks from Production Clerk, Technician and Supervisor to his appointment as DM. Over the period, he attended evening classes and completed a BSc and MSc in Administration. As a member of the company's management team, he commands a lot of respect from the CEO who greatly values his opinion. His career path, performance and fair decisions have earned him considerable credibility. He is also respected by his team because he knows the company inside out and is an excellent leader in the field. In fact, employees recognize his expertise and appreciate his recommendations because they know that for several years, he had performed their jobs.

3. Recently, the production plant hired a few young persons with good technical skills who could be ready to take on the position of DM within three years. Five of them have expressed an interest and have shown that they have the potential to handle this job.

A. Describe steps that should be taken to recruit the best candidate for the position of General Controller.

B. Given that the five interested employees already possess technical skills and knowledge required for the position of DM, how should the best candidate be selected?

C. Why is it essential to recruit quality employees?

D. How important is development of a succession planning system to an organization such as Binger Limited