Determinants Of Succession Management Practice In East Africa Bottling Share Company: The Case of Dire Dawa Plant

Succession management practice is seen as management pipeline that accelerates management performance over a period of time. The presence of effective implementation of a succession plan in the organization helps to build strong leadership and departmental relationships. The general objective of this study was to examine the determinants of succession management practice in EABSC, Dire Dawa Plant. The specific objectives were describing the extent of perception on succession management practice, evaluating factors that affect the success and challenges of succession management practice and analyzing measures taken to overcome challenges of succession management practice. This study employed mixed methods like; descriptive and exploratory. It also applied semi-structured interview and structured questionnaires to collect explanatory data. Probability sampling method was employed. Using random sampling method 184 employees were selected. The study was undertaken at 96.2% response rate. Both primary and secondary data were collected. Descriptive statistics and logarithmic form of Logit model was applied. This study identified 10 different variables that challenge succession management practice. Out of 10 independent variables 7 of them were statistically significant. These are training and development at 1%, top management support at 5%, strong organizational culture at 1%, performance management at 1%, mentoring programs at 1%, technological advancement at 5%, and financial conditions at 1% level of significance positively. Based on the results this study made some recommendations like; the company should provide enough funds for training and development opportunities, in order to implement a successful succession management practice, there is a need for support from the top managers, and financial conditions of the company should be strengthened in order to increase the success of human resource development in general. Finally the researcher also recommends further study to be conducted to address the success of succession management practice.