Business succession and organizational performance: a study of selected family-owned schools in Kiambu County, Kenya
Wambugu, Melisa Waithiegeni
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This study sought to find out the factors that influence business succession and organizational performance in selected family owned schools in Kiambu County. The study was guided by four objectives namely; to determine if elimination of redundancy in management structure influence performance of family owned schools, to establish whether grooming selected internal candidate influence performance of selected family-owned schools in Kiambu county, to identify if conflict management in swift leadership change influence performance of selected family-owned schools in Kiambu county and to find out how planning of successor influence performance of selected family-owned schools in Kiambu county. Primary and secondary sources of data were used in this study where primary sources of data were collected by use of closed ended questionnaire after a pilot test had been conducted. The collected data was analysed using SPSS to compute both descriptive and inferential statistics including frequencies, charts, regression and correlation. The results were thereafter presented in form of tables, graphs and charts. The research received a response rate of 88% which contributed towards gathering of sufficient data that could be generalized to represent the opinions of respondents in the family owned schools in Kiambu on the sought study problem. The study concluded that the selected family owned schools in Kiambu County have implemented succession management. The businesses are aware that succession planning is essential for any firm and positively related to the overall performance and success of the business. The study also concluded that family owned schools in Kiambu County work towards eliminating redundancy in the management structure. This is achieved through the presence of formal structures and the board of directors working towards steering the business in a successful direction. The schools also groom selected internal candidates through motivation and trainings by other retiring executives. Grooming helps to prepare the successor for future activities and enhances their competency. Planning for the retiring executives also pave way for grooming the selected candidate. The study further concludes that succession planning has a positive and statistically significant effect on the organizational performance of family owned schools in Kiambu County. The study therefore recommends that in order to improve performance of these schools, the management should consider having established and well-defined succession plans.