Plan-Process Factor's Effect on Talent Management and Succession
Planning Programs
NASER KHARROUB1, ABDUL AZIZ BIN MAT ISA2, MUHUMMAD KHAIRUL ISLAM2
1Universiti Tenaga Nasional (UNITEN),
MALAYSIA
2Universiti Tenaga Nasional (UNITEN),
MALAYSIA
Abstract: - The aim of the current study is to explore the effect of factors related to the Plan (Mission Clarity
and Rewards & Compensation) and the Process (Policy & Procedures and Career Development) on the Talent
Management and Succession Planning Programs in Saudi Arabia, in addition, this study will focus on the
mediating effect of the Organizational Productivity on the relationship between the variables. To achieve these
objectives, this study followed the quantitative research methods through the distribution of 408 questionnaires
to the employees of the Saudi Electricity Company. The results showed that Mission Clarity, Rewards &
Compensation, Policy & Procedures, and Career Development have a significant relationship with Talent
Management and Succession Planning. In addition, Organizational Productivity has a significant mediating
effect on the relationship between Mission Clarity, Rewards & Compensation, and Policy & Procedures with
Talent Management and Succession Planning. However, Organizational Productivity has insignificant
mediating effect on the relationship between Career Development and Talent Management and Succession
Planning.
Key-Words: - Mission Clarity, Rewards & Compensation, Policy & Procedures, Career Development, Talent
Management and Succession Planning, Saudi Arabia.
Received: January 2, 2024. Revised: June 23, 2024. Accepted: July 17, 2024. Published: August 14, 2024.
1 Introduction
Organizations in the twenty-first century have
significant problems in terms of human capital. One
of these issues is succession planning and talent
management. Indeed, a variety of factors have led to
the increased relevance of talent management and
succession planning, most notably the
competitiveness between employers on a local, but
much more so on a worldwide scale, [1]. More
recently, the discourse has shifted to one in which
the maximum of individual workers' talent as a
unique competitiveness for companies is the key
aspect of human capital strategy, [2]. However, the
issue that arises is the degree to which corporations
manage their talent successfully in this regard.
Nonetheless, this is still a poorly studied field, with
minimal theoretical development and limited
empirical proof, [3].
Talent management and succession planning
offer firms a purposeful strategy for the retention
and continuance of important capabilities, and they
indicate a true commitment to improving the staff
that is already in place. Talent management and
succession planning is seen as a technique for
establishing human resource and business planning
procedures in order to achieve organizational
objectives by incorporating talent mindsets. As a
result, at the organizational level, people's
performance and potentiality increase, [4]. The
emphasis of the performance is on the past and now,
while the potential reflects the future. People have
potential, but it has to be found and nurtured. Talent
management is the result of a combination of
factors, including Ethos (embedded values and
behavior), focus (understanding their position
description), positioning (acquiring high-level
management positions in the organization), structure
(creating tools, methods, and techniques with
accountability for their work), and system (taking a
long-term holistic approach to bring out a periodic
change in organs), [5]. The goal of advanced human
resource talent management is to arrive at a
decision. Talented human resources are required by
the company. Three factors must be considered:
how human resources provide value to the
organization now, and in the future, and how they
bridge the gap in managing the risks, potential, and
performance, [6].
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Overall, the aim of the current study is to explore
the effect of factors related to the Plan (Mission
Clarity and Rewards & Compensation) and the
Process (Policy & Procedures and Career
Development) on the Talent Management and
Succession Planning Programs in Saudi Arabia, in
addition, this study will focus on the mediating
effect of the Organizational Productivity on the
relationship between the variables. This study will
follow the quantitative research methods on
randomly selected participants from the Saudi
Electricity Company.
2 Literature Review
2.1 Mission Clarity
The mission statement, often known as the vision or
charter, takes priority over all other organizational
papers. It has three distinguishing features: A
mission statement does not specify a time limit for
its validity, but it must be reviewed on a regular
basis. If, as a result of changes in the environment or
the firm itself, the mission statement no longer
delivers or even hinders success, it will need to be
amended or replaced. After finishing the strategic
analysis, it is useful to analyze the business mission
statement in order to make any required
modifications. A mission statement outlines a set of
principles that have been thoroughly examined and
methodically aligned, [7].
Different types of decisions are limited by these
rules. Principle-influenced decisions are called
dependent decisions. The mission statement, the
company's most crucial business document, guides
its long-term development. Mission statement
objectives must be followed when building strategic
and operational strategies. The mission statement
must be modified or created before our suggested
process can develop strategies. Business mission
statements have been connected to many outcomes,
[7]. Several researches focused on the relationship
between Mission Clarity and Projects or Programs
Success like, [8], [9], [10], [11].Therefore, one
could hypothesize that:
H1: There is a significant impact of Mission
Clarity on Talent Management & Succession
Planning Programs in Saudi Arabia.
2.2 Rewards & Compensation
Numerous internal and external factors, including
corporate strategy, culture, technology, people,
national and international demographic trends, local
and industry standards, industrial relations,
legislation, and institutional factors, should be
considered when designing the rewards and
compensation landscape. An organization's strategic
posture in the market with regard to benefits and
compensation is taken into consideration in the next
stage, which focuses on making tactical decisions
such as establishing the grounds of pay based on
that position, [12]. Developing and implementing
strategies that are focused on teams or groups can
also be considered a component of differential
performance. The second set of tactical and strategic
decisions to be taken is determining the guiding
principles for developing compensation and benefit
plans. [13], assert that there are two possible types
of rewards: relational or transactional in character,
and their substance might be monetary or non-
monetary, [13].
Direct and indirect forms of monetary and non-
monetary compensation are examples of
transactional features that are frequently observed.
Relational compensation places a strong focus on
intangibles like supplying learning opportunities,
recognizing peers and employees, offering job
security, supplying challenging assignments and
work chances, and so forth. The elements that
emotionally connect with certain people are
prioritized in this last design stage. Studies on
rewards and performance management indicate that
performers are frequently split into two groups: poor
and average performers and exceptional and high
achievers, [12].
A company needs to be able to distinguish
between these groupings of people in order to find
high-performing individual contributors. Top
performers may receive merit-based compensation
in addition to market and performance loadings.
Based on the idea of workforce flexibility,
businesses must divide discrete groups of employees
in their salary and benefits plans. Since it might
trigger different emotions in people who are
employed full-time vs those who are employed in
non-traditional organizations, an egalitarian, one-
size-fits-all strategy might not be the best course of
action. 'Employee flexibility' should also be
considered when designing both salary and perks.
Allowing perks like flexible scheduling and
possibilities like working from home, a co-working
place, or a smart work hub are examples of this,
[14]. Studies like [12], [15], [16], [17], [18] have
confirmed the effect of the rewards and
compensation on the success of the organization
projects, which means that one can hypothesize that:
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H2: There is a significant impact of Rewards &
Compensation on Talent Management & Succession
Planning Programs in Saudi Arabia.
2.3 Policy and Procedure
The policies and procedures of an organization
serve as a set of guidelines for the decision-making
processes and the manner in that work should be
carried out inside that company. Increased openness,
accountability, consistency, and stability are the
outcomes of having policies and procedures that are
created in a way that is clear and is done so
properly, [19].
Regardless of the size of the organization,
formalizing policies and procedures can help a
business run more productively and efficiently.
When handling HR-related issues, it may be
possible to save time and reduce stress by adhering
to established policies and procedures. Seeking a
consensus on the best course of action in the
absence of established policies is a pointless
endeavor that could be better utilized for other
purposes. Workers only need to follow the
procedures because strict standards have already
been defined, and supervisors only need to enforce
the policies, [20].
Equally important, using these documents
enhances how an organization presents itself to the
outside world. Making sure the business follows
clear policies and procedures could make it easier to
comply with relevant laws and regulations. They
also provide proof that the firms are continuously
managed by qualified people with the necessary
training. There's a possibility that this will result in
more corporate relationships and better public
reputation. As they increase workplace success,
policies and procedures are advantageous, claim,
[20]. However, for them to be successful, all of the
organization's employees must adhere to them, [20].
The organization's operating procedures and
decision-making processes will always be standard
and consistent when the rules are strictly adhered to,
regardless of the circumstances. Failure on the part
of the corporation to follow the specified procedures
puts the organization in danger. When an employee
or other external party files a complaint against the
company, the organization's case will be enhanced if
it has documented policies and procedures in place,
[21]. Therefore, one could hypothesize that:
H3: There is a significant impact of Policy &
Procedure on Talent Management & Succession
Planning Programs in Saudi Arabia.
2.4 Career Development
A pattern of work experiences that lasts a person's
whole life span is known as a career. Careers are
often seen as consisting of a number of distinct
phases or stages, each of which marks the passage
from one time of a person's life to the next
(sequences of work roles). This means that the term
“career” may be understood in terms of the
acquisition of information and skills, the ability to
learn, the formation of an identity, and the self-
concept that serves as a fulcrum for one's career,
[22]. The current environmental conditions, a
relationship concept (psychological contract), and
the dominant points of view (e.g., intra- or inter-
organizational) of various sociological disciplines
and fields of psychology (e.g., occupational,
organizational, personnel, and managerial
psychology) are always linked to models for career
development and study, [23].
For decades, this intrafirm perspective has
focused on single organizational contexts (career
development within a single, stable corporation) and
made limited career assumptions. Although
companies have changed, career study shows that
this traditional approach has mainly survived. Most
classical career development models reflect this
traditional view of work and career, which includes
clear principles like hierarchical promotion and
inter-organizational mobility, stability in the
working environment (e.g., the organization and
work role continuing to exist), and constant
availability of positions and work roles based on
employees' interests, talents, and abilities. It sees
enterprises as a 'benevolent' collective that actively
contributes to each employee or executive's
professional advancement. Two institutions supplied
the context for professional responsibility in
addition to the career viewpoint, [24]. Overall,
several studies considered the effect of Career
Development on Organizations’ projects and
programs, [23], [24], [25], [26], [27], therefore, one
could hypothesize that:
H4: There is a significant impact of Career
Development on Talent Management & Succession
Planning Programs in Saudi Arabia.
2.5 Organizational Productivity
High-performing employees help a firm achieve its
goals. Productivity enhances the work environment
by boosting morale and fostering an excellence-
focused corporate culture. Additionally,
organizational productivity can be increased by
continuously assessing employee skills and
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workplace quality and adapting procedures as
necessary.
A positive work environment should also be
guaranteed in order to ensure increased productivity
because otherwise, the workforce will not be able to
perform their duties effectively, [28]. Therefore, one
could hypothesize the following:
H5: There is a significant mediating effect of
Organizational Productivity on the relationship
between Mission Clarity Talent Management &
Succession Planning Programs in Saudi Arabia.
H6: There is a significant mediating effect of
Organizational Productivity on the relationship
between Rewards & Compensation and Talent
Management & Succession Planning Programs in
Saudi Arabia.
H7: There is a significant mediating effect of
Organizational Productivity on the relationship
between Policy & Procedure and Talent
Management & Succession Planning Programs in
Saudi Arabia.
H8: There is a significant mediating effect of
Organizational Productivity on the relationship
between Career Development and Talent
Management & Succession Planning Programs in
Saudi Arabia.
The research framework of the current study is
illustrated in Figure 1 (Appendix).
3 Research Methods
A systematic sample can have precision equivalent
random sampling” [29]. In this approach, “the
researcher chooses a random start on a list and
selects every X numbered person on the list. The X
number is based on a fraction determined by the
number of people on a list and the number that are
to be selected on the list (e.g., 1 out of every 80th
person)”. Finally, the last type of sample selection is
“a nonprobability sample (or convenience sample),
in which respondents are chosen based on their
convenience and availability”.
A systematic sampling procedure was used to
select the respondents. According to [30], “It is a
way of selecting a sample where the sampling
frame, depending upon the sample size, is first
divided into a number of segments called intervals.
Then, from the first interval, using simple random
sampling, one element is selected. The selection of
subsequent elements from other intervals is
dependent upon the order of the element selected in
the first interval. If in the first interval it is the fifth
element, the fifth element of each subsequent
interval will be chosen”.
The researcher will get the list from the human
resource management of Saudi Electricity
Company, and then prepare for the systematic
selection according to the interval of selection
which is the research population divided by the
sample size (37,769/408=7,868) which means that
the researcher will select every 7868th respondent in
the list to participate in this study. The response rate
was 100% as all of the invited participants
responded to the questionnaire.
The Saudi Electricity Company employees who
provided the primary data were interviewed.
Through emails, physical visits, and telephone calls,
the researcher contacted the Human Resources
Department of the Saudi Electricity Company in
order to get approvals to commence data collecting.
On the basis of the employees; desire to take part in
the research, a total of 408 questionnaires were sent
out to them. This was done using a method known
as simple random sampling. Additionally, they were
told that the findings of the poll will be made
accessible to them upon request should they so
want.
4 Instrument Development
Within the context of this research, the creation of
instruments was carried out with great attention in
order to accurately represent nature. As a result, the
questionnaire was created with 25 items, and the
variables were scored using a five-point Likert
scale, where five represents “Strongly Agree” and
one represents “Strongly Disagree”. Because the
individuals who filled out the questionnaire were
native Arabic speakers, it was very necessary for the
questionnaire to be translated from English to
Arabic in an accurate manner. In order to test the
accuracy of the translation in a cross-cultural
survey, a back translation was carried out, which is
a method that is often used, [31]. In addition, the
validated instruments that are shown in Table 1
(Appendix) were adopted from similar earlier
research in order to measure the variables that are
being investigated in this investigation.
5 Results
The suggested model has been evaluated in the
present research in two stages: the measurement
model (outer model) and the structural model (inner
model) assessments. But before doing these two
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things, a brief overview of the respondents' profiles
is provided:
5.1 Respondent Profile
In the demographic information section, respondents
in the Saudi Electricity Company were categorized
by their Gender, Age group, and Employment
Level, as displayed in Table 2 (Appendix).
5.2 Measurement Model
Smart PLS 3.3 was used in order to do the testing of
the research model for this investigation. In
addition, an investigation was carried out with
reference to the measurement model (validity and
reliability of the measures) and the structural model
(testing the hypothesized relationships within the
framework). The first step in the evaluation process
is to examine the level of internal consistency and
reliability. Cronbach's Alpha and the Composite
Reliability Index were both utilized over the course
of the testing that took place. In the first run, the
values for Cronbach alpha in this study were above
the cutoff of 0.7 that was proposed by [34], there is
no need for any additional change in either the first
or second run (Table 3, Figure 2 and Figure 3 in
Appendix). Two items, PP1 and RC2, had low
levels of factor loadings as a consequence of this.
These items received scores of 0.139 and -0.080,
respectively. It has been proposed by [34] that these
values are below the cutoff point for factor loadings.
As a result, a form of modification was taken into
consideration during the second run, and as a
consequence, PP1 and RC2 were eliminated in order
to attain levels of factor loadings that were
adequate. Factor Loadings, Cronbach Alpha,
Composite Reliability, and Average Variance
Extracted (AVE) have all seen their respective
cutoff points that have been reached by all variables.
as illustrated in Table 3 (Appendix).
An assessment was carried out in the second
phase of the process to assess the discriminant
validity. This was done to determine the precise
extent to which a certain construct differs from other
constructs. A significant factor to consider while
establishing validity is the correlations between the
variables. The validity was assessed using measures
of the correlations between constructs and the
square root of the average variance discovered for a
construct, [35], [36]. [36], reports that the model's
estimate did not surpass 0.95, [36]. Moreover, the
model did not provide any statistically significant
results. As a consequence, the Fornell and Larcker
Criterion findings are shown in Table 4 (Appendix),
which shows that no value exceeds the suggested
cutoff point of 0.95, [35].
Moreover, the Heterotrait - Monotrait Ratio
(HTMT) offers an approximation of the genuine
correlation between two constructs assuming they
were precisely assessed or completely dependable.
The average of all correlations (i.e., cross-
correlations) between indicators measuring distinct
constructs with respect to the (geometric) mean of
the average correlations between indicators
measuring the same construct is also known as the
Heterotrait-Monotrait Correlations (HTMT). The
HTMT may be used for a discriminant validity
assessment [34]. The level of HTMT that is deemed
“acceptable” in the literature is 0.90. For further
details [37], (Table 5 in Appendix).
5.3 Structural Model
The structural model is a representation of the
theoretical or conceptual part of the path model. In
PLS-SEM, the structural model is also known as the
inner model, according to [34]. The latent variables
and the path relationships between them are
included in this model. The next step is to assess the
structural model, which comes after the
measurement model has been examined. In order to
assess the structural model, [34] state that four
actions need to be taken. The evaluation of the path
coefficients (step 2), the effect size (R2 value) (step
3), the evaluation of the coefficient f2, and the
assessment of collinearity (step 4) are these phases
[34].
Table 6 (Appendix) illustrates the results of PLS
bootstrapping consisting of the Beta value, t-values,
p-values, hypothesis results (whether supported or
not) confidence interval, f2, and VIF scores.
Furthermore, Table 6 (Appendix) summarizes the
results of the structural model and PLS
bootstrapping.
5.3.1 Assessment of the Structural Model for
Collinearity Issues
The first stage of developing the structural model is
evaluating the collinearity problems. Prior to doing
a latent variable analysis in the structural model, it is
vital to take precautions against construct
collinearity. By measuring the value of the VIF, the
collinearity has been measured. The threshold value
of the assessment is set at 3.3 in accordance with the
suggestions made by [38]. Table 6 (Appendix)
illustrates that all of the inner VIF values for the
constructs under examination lie between the range
of 1.025 and 2.533. For this inquiry, collinearity is
not a concern since they are all less than 3.3 [38].
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5.3.2 Assessing the Significance of the
Structural Model Relationships
It has been established in Table 6 (Appendix) and
Figure 4 (Appendix) that the bootstrapping process
has been used in order to generate results for each
path relationship in the model. This was done in
order to test the hypotheses.
According to [34], bootstrapping in PLS is a
nonparametric test that involves repeated random
sampling with replacement from the initial sample.
The objective of this test is to generate a bootstrap
sample and achieve standard errors for the purpose
of hypothesis testing [34]. [39] recommended
carrying out bootstrapping with a total of one
thousand samples [39]. This was in reference to the
number of resampling samples. This investigation
has resulted in the formulation of nine hypotheses
about the constructs. Through the use of the
bootstrapping function in SmartPLS 3.3, t-statistics
for each and every path have been created in order
to test the significance level. The bootstrapping
procedure has been configured with a significance
level of 0.05, a test with one tail, and a total of one
thousand subsamples. According to the one-tailed
test, the critical value for the significance level of
five percent (α = 0.05) is 1.645, [40].
The results shown in Table 6 (Appendix)
indicate that the path coefficients have a
standardized value that falls between -1 and +1 (i.e.,
values between 0.070 and 0.270). Estimated path
coefficients approaching +1 show significant
positive relationships, and the closer the value
comes to zero, the weaker the relationships grow
[34]. The t-test is then performed on the
relationships, and it is discovered that the t-values
are greater than or equal to 1.645. Thus, for H1, H2,
and H4, these relationships are significant at 0.05,
while H3 was rejected. A summary of these findings
is illustrated in Table 6 (Appendix).
5.3.3 The Coefficient of Determination (R2)
In the next step, the predictive accuracy of the
model will be evaluated by determining the value of
the coefficient of determination (R2) that was
produced from the model. The value of R2, which
spans a range from zero to one and may be
anywhere in between, is directly related to the
model's predictive ability. A greater value denotes a
higher level of accuracy in the predictions made by
the model, according to [34]. The Smart PLS
method was used to create Table 6 (Appendix),
which displays the computed value of R2.
The standards established by [41] were followed
throughout the investigation. These standards state
that values of 0.02, 0.13, and 0.26 are considered to
represent weak, moderate, and substantial levels of
predictive accuracy, respectively [41]. This is
justified by the fact that our study has been done in
compliance with many sets of criteria, each of
which establishes a distinct acceptable value for R2.
Table 6 (Appendix) shows that 62.2% of the
variation in Talent Management and Succession
Planning (TMSP) can be attributed to the
components of Career Development (CD), Mission
Clarity (MC), Organizational Productivity (OP),
Policy and Procedures (PP), and Rewards and
Compensation (RC). This indicates that predictive
accuracy has reached a substantial level.
5.3.4 Assessment of the Effect Size (f2)
The effect sizes, denoted by the symbol f2, have
been assessed at this point. When it comes to the
relative influence of a predictor construct on
endogenous constructs, the value of f2 is tied to this
relationship. According to [42], it is essential to
provide not just the p-value but also the substantive
significance (effect size) and statistical significance
(p-value), [42]. This is in addition to the fact that the
p-value should be stated. In addition, a guideline
that was established by [43] has been adhered to in
order to measure the size of the effect. [43], found
that the values of 0.02, 0.15, and 0.35 reflect small,
medium, and substantial effects, respectively. These
values are based on the findings of the research that
[43] conducted. As can be viewed in Table 6
(Appendix), Mission Clarity (MC) has a small effect
on generating the value of R2 for Talent
Management and Succession Planning (TMSP). In
addition, Rewards & Compensation (RC) and
Career Development (CD) both have a medium
effect on the production of the value of R2 for
Talent Management and Succession Planning
(TMSP). However, Policy & Procedures (PP) has no
effect on producing the value of R2 for Succession
Planning (TMSP).
5.3.5 The Mediating Effect of Organizational
Productivity
Following the evaluation of the direct impact, the
analysis of the mediation hypothesis was carried
out. The presence of a third variable acting as a
connection between the independent and dependent
variables is the defining characteristic of a
mediating effect (Figure 5, Appendix). This is the
most important aspect of the impact. As a matter of
fact, the influence of the Y1 (IV) on the Y3 (DV) is
technically mediated by a third variable, Y2, which
is referred to as the mediating variable or mediator
(Table 7 in Appendix). The process of developing
mediation hypotheses involves the researcher taking
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into consideration the ways in which an independent
variable (Y1) might impact a dependent variable
(Y3) via the use of one or more possible intervening
factors, often known as mediators (Y2), [44].
As shown in Table 7 (Appendix) and observed,
the current study presented 4 hypotheses that were
constructed in order to assess the mediating effect of
Organizational Productivity.
Testing for the type of mediation in a model
requires running a series of analyses, which Figure 6
(Appendix) illustrates. The first step addresses “the
significance of the indirect” effect (p1 · p2) via the
mediator variable (Y2). “If the indirect effect is not
significant (right-hand side of Figure 6 in
Appendix), the researchers conclude that “Y2 does
not function as a mediator in the tested relationship.
While this result may seem disappointing at first
sight, as it does not provide empirical support for a
hypothesized mediating relationship, further
analysis of the direct effect p3 can point to as yet
undiscovered mediators. Specifically, if the direct
effect is significant, the researchers can conclude it
is possible there is an omitted mediator, which
potentially explains the relationship between Y1 and
Y3 (direct-only non-mediation). If the direct effect
is also nonsignificant (no-effect non-mediation),
however, we have to conclude that our theoretical
framework is flawed. In this case, we should go
back to theory and reconsider the path model setup.
Note that this situation can occur despite a
significant total effect of Y1 on Y3”.
As shown in Table 8 (Appendix) and observed
from Figure 6 (Appendix), the current study
presented 4 hypotheses that were constructed in
order to assess the mediating effect of
Organizational Productivity (OP). In the current
study, the mediating effect analysis carried out using
Smart PLS found the following:
In H5: Organizational Productivity (OP) plays a
significant mediating role in the relationship
between Mission Clarity (MC) and Talent
Management & Succession Planning Programs
(TMSP) with partial mediation level and
complementary mediating.
In H6: Organizational Productivity (OP) plays a
significant mediating role in the relationship
between Rewards & Compensation (RC) and Talent
Management & Succession Planning Programs
(TMSP) with partial mediation level and
complementary mediating.
In H7: Organizational Productivity (OP) plays a
significant mediating role in the relationship
between Policy & Procedure (PP) and Talent
Management & Succession Planning Programs
(TMSP) with full mediation level and
complementary mediating.
In H8: Organizational Productivity (OP) has no
significant mediating role in the relationship
between Career Development (CD) and Talent
Management & Succession Planning Programs
(TMSP) as the mediating analysis results showed
that no effect was noticed.
6 Conclusion and Discussion
The aim of the current study is to explore the effect
of factors related to the Plan (Mission Clarity and
Rewards & Compensation) and the Process (Policy
& Procedures and Career Development) on the
Talent Management and Succession Planning
Programs in Saudi Arabia, in addition, this study
will focus on the mediating effect of the
Organizational Productivity on the relationship
between the variables.
In the quantitative data analysis, Mission Clarity
affects the success of the Talent Management &
Succession Planning programs. Hence, H1 was
supported, the programs of the Talent Management
& Succession Planning conducted by the Human
Resources Department will be more successful if
these programs are associated with the mission of
the Saudi Electricity Company. Missions of the
firms in Saudi Arabia must clearly state that
developing the human capital is essential and
crucial, as the success of these programs will be met
when the employees acknowledge the importance of
their development within the structure of the
organization, starting from the mission statement of
this organization. Such a result was anticipated, not
only because the majority of the published literature
concurred with that, but also because the mission
statement describes the identity of any organization.
If the mission statement is well-written, any
employee will feel a sense of belonging to this
organization, and regardless of the circumstances,
they will perform better in order to accomplish the
objectives of the company. On the other hand, a
mission that is both ambiguous and superficial will
have the opposite impact and will be detrimental to
the process of the company's objectives being
achieved. As a result, Talent Management and
Succession Planning Programs are relying on the
clarity of the mission statement. The mission
statement needs to contain an unambiguous
declaration that the development of human capital is
at the top of the firm's mission and that the company
is working hard to accomplish this goal. This result
is consistent with the previous published literature,
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with some studies found to disagree with these
findings [9], [10].
Moreover, Rewards & Compensation affect the
success of Talent Management & Succession
Planning programs. Hence, H2 was supported.
Speaking of the current study, Rewarding the
employees with tangible and intangible benefits will
bring the employees to level of working harder and
always maintain the high level of performance,
which will lead to gaining more experience and
becoming ready for promotion and ensuring the
success of the Talent Management & Succession
Planning programs. In the researcher's opinion, it is
always important to set up a program dedicated to
rewarding the high level of performance abreast of
the programs of Talent Management & Succession
Planning, and that is to make sure that the first
program will lead to the success of the second
program. In light of this fact, the result achieved
during the analysis was legit and expected. This
result is in consistent with the previous published
literature, with no studies found to disagree with
these findings [18], [45].
Policy & Procedure do not affect the success of
the Talent Management & Succession Planning
programs. Hence, H3 was rejected, which means,
that while the finding of an insignificant effect of
policy and procedure on Talent Management &
Succession Planning Programs may initially seem
surprising, it offers valuable insights into the
complexity of Talent Management & Succession
Planning Programs. It suggests that organizations in
Saudi Arabia should consider a holistic approach
that considers various factors beyond just policies
and procedures. Considering this unexpected result,
while the result may challenge some
preconceptions, it offers a valuable opportunity for
organizations and researchers to dig deeper into the
complexities of Talent Management & Succession
Planning Programs in Saudi Arabia. Rather than
dismissing the significance of policy and procedure,
it prompts a reevaluation of how these elements
interact with various contextual, cultural, and
organizational factors. This result is in consistent
with the previous published literature, with no
studies found to disagree with these findings. [20],
[46], [47].
Furthermore, Career Development affects the
success of the Talent Management & Succession
Planning programs. Hence, H4 was supported.
Speaking of the current study, there is no doubt that
career development Talent Management &
Succession Planning programs are attached together,
meaning that Talent Management & Succession
Planning programs are working on the development
of the skills of the human capital, while the concept
of the career development focusing on the self-
awareness of the continuant development
personally. Therefore, the success of the Talent
Management & Succession Planning programs in
the Saudi Electricity Company is strictly associated
with the career development of the employees. From
the research point of view, this result is expected, as
both concepts are working on the development of
the skills of the human capital in each company, let
alone the Saudi Electricity Company. Therefore,
with proper career development, the Talent
Management & Succession Planning programs will
be more successful. This result is consistent with the
previous published literature, with no studies found
to disagree with these findings [45], [48], [49].
The final segment of the current study is the
concept of including the mediating effect of
Organizational Productivity. In this segment, the
organizational productivity of the Saudi Electricity
Company is put into question whether it is
improving factors that affect the success of the
Talent Management & Succession Planning
programs. First, Organizational Productivity plays a
significant partial mediating effect on the
relationship between Mission Clarity, Talent
Management & Succession Planning Programs. As
a consequence of this, the level of production that is
produced by the employees will also contribute to
the success of the Talent Management and
Succession Planning programs. This is due to the
fact that the employees will be able to comprehend
the mission in a way that will allow them to be more
productive. Therefore, H5 is supported. In addition,
Organizational Productivity has a significant partial
mediating effect on the relationship between
Rewards & Compensation and Talent Management
& Succession Planning programs. It means that
when the employees are well-rewarded for their
high level of production, the success of the Talent
Management & Succession Planning programs will
be higher. Which means that H6 is supported.
Additionally, Organizational Productivity has a
significant mediating role in the relationship
between Policy & Procedures and Talent
Management & Succession Planning programs. This
means that when policies and procedures are set
considering a high level of production, the Talent
Management & Succession Planning programs will
be more successful which means that H7 is
supported. Finally, Organizational Productivity has
an insignificant mediating effect on the relationship
between Career Development, Talent Management
& Succession Planning programs, meaning that H8
is rejected. It means that whether the organization’s
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overall production is high or low, the employee will
remain focused on the development of their careers,
while the success of the Talent Management &
Succession Planning programs will not be affected.
Similarly, many studies focused on the mediating
role of the Organizational Productivity, [48], [50].
7 Research Implications
This study has various implications for Saudi
Arabian companies' human capital development.
The study reveals that Talent Management &
Succession Planning programs' success is correlated
with their mission statement. Practically, Saudi
Arabian enterprises should concentrate on their
mission statement; goals should be carefully picked
and effectively presented to employees to increase
employee attachment and future leadership. Having
a well-designed reward system would assist
companies because when employees are recognized
for their efforts, they will keep doing well and
contribute to the Talent Management & Succession
Planning programs' success. The organization will
also be on track to attaining the success of the
Talent Management & Succession Planning
programs with well-planned and well-written
policies and processes. Finally, encouraging
employees to develop their careers will affect Talent
Management & Succession Planning programs, so
Saudi companies should put more effort into
training their human resources.
Productive and non-productive companies are
easily recognized. This attribute boosts all firm
numbers and reflects human capital morale. In the
study, putting more effort into the company's
mission statement means drawing up goals and
objectives with employees, which boosts production
and Talent Management & Succession Planning
programs' success. Dedicate the same effort to the
rewards system to increase productivity. Rewarded
employees will work more, which will boost Talent
Management & Succession Planning programs'
success. Policies and procedures affect
organizational productivity; thus, companies should
be attentive while writing them. Last but not least,
the success of Talent Management & Succession
Planning programs is still affected by the career
development of the employees, whether they work
for high- or low-productive companies.
8 Future Research Recommendations
The current study considered only one example of
the Semi-Public Sector companies in Saudi Arabia,
which is the Saudi Electricity Companies, and no
other companies, therefore, future studies could
consider other companies in Saudi Arabia.
Furthermore, this research was carried out in a small
amount of time; repeating the same investigation
using the same framework over a longer time frame
might improve the results and provide a larger range
of findings. Additionally, this study was restricted to
using just one kind of research methodology,
namely quantitative research methodologies.
Additionally, the scope of this study was restricted
to two sets of variables: plan and process-related
variables. A lengthy list of factors, such as
organizational or human-related factors, could be
found in the published literature and could affect the
success of Talent Management and Succession
Planning programs.
9 Practical Implications for Asian
Business
The conclusions of this study have significant
implications for businesses located in Asia,
particularly in Saudi Arabia's context. In addition to
that, these implications are of great importance in
the practical realm. In the first place, it emphasizes
how essential it is to establish a mission statement
that is not only understandable but also appealing,
and that is also in accordance with the procedures of
talent management and succession planning. It is
possible to achieve the aims of increasing employee
engagement and fostering potential future leaders by
providing employees with the opportunity to
participate in the design of goals and ensuring that
these goals are effectively communicated to
employees. The approach that is being taken is in
good harmony with the cultural values that are
widespread in Asian countries, such as collectivism
and loyalty to the organization. This is the case
since the approach is being followed. Among the
countries that exhibit these qualities, Saudi Arabia
stands out as particularly prominent.
In the second place, the study reveals that a
well-structured incentive system has a substantial
impact on the development of a culture of high
performance and on the motivation of employees to
achieve to the best of their abilities. It is possible to
significantly boost job happiness and dedication in
Asian cultures by providing employees with rewards
for their accomplishments. Many cultures place a
significant amount of value on the idea of "face" and
recognition. It is possible to boost the effectiveness
of talent management and succession planning
programs by providing employees with incentives to
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perform at a high level and make significant
contributions to the long-term success of the
business. The possibility that these programs would
be effective would increase as a result. To facilitate
the employees' growth toward achieving this goal,
they are offered opportunities to participate in
activities that have personal significance for them. If
employees had the chance to grow in their
professions and acquire new skills, it's quite likely
that they would find it easier to accomplish this
goal. This is a very plausible situation.
The significance of having comprehensive
policies and procedures within a corporation is one
of the third issues that is investigated within the
scope of the research study. Probably the most
important aspect of this situation is that it offers the
chance to control organizational behavior and
ensures that choices will be made consistently. The
situation's most significant component is this. To
inform you that the policies and procedures that
have been implemented have been placed in the
appropriate place is, in my view, of the utmost
significance. Asian business cultures are
distinguished by two primary traits: a strong
commitment to upholding long-standing customs
and a reverence for hierarchical organizational
structures. It is important to remember that the two
characteristics described above are only two of the
many that make up Asian business cultures. It is
crucial that you keep a watchful eye out for these
two distinct individuals in order to prevent any
negative consequences. In the event that a situation
similar to the one that is now occurring occurs, it is
of the utmost significance to have policies and
procedures in place that are not just apparent but
also seem to be quite clear. Its great significance
leads to this outcome, which is the consequence.
These procedures are also carried out to ensure that
the succession planning and talent management
programs are implemented in an appropriate way
and to dispel any uncertainty that could arise from
the implementation of these programs. The theory
that this theory represents ties in well with the
notion that Asian corporate cultures are often seen
as having a high level of respect.
The study's conclusions are meant to draw
attention to the problem and emphasize the
significance of investing in the professional
development of the company's employees. The
organization hopes to increase the size of the talent
pool it can now access through the project's
implementation. If employees have the opportunity
to participate in training and skill development as
part of their job, it's probable that they will be able
to improve their abilities and raise the possibility
that they will hold leadership positions in the future.
Because of this information, companies can now
provide their employees with opportunities to grow
in their specific areas of competence. This particular
element is very important in Asian cultures because
of its significance in Asian civilizations, which
place a great value on the quest for knowledge and
the improvement of oneself via personal
development. In another sense, it makes a
significant contribution.
The study's results are significant because they
highlight the significance of strategic approaches to
human resource management in support of
organizational success in Asian business
environments. This is due to the fact that they
showed the significance of these methods.
Businesses in Asia, especially in Saudi Arabia, have
the opportunity to improve their succession planning
and people management programs, which will
eventually result in the attainment of long-term
organizational success. This is a very good chance
for Saudi Arabian businesses. This goal can be
accomplished in a variety of ways, such as
emphasizing the creation of a clear mission
statement, establishing a productive system for
rewarding employees, establishing precise policies
and procedures, and investing in the professional
development of employees.
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research, at all stages from the formulation of the
problem to the final findings and solution.
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Conflict of Interest
The authors have no conflicts of interest to declare
that are relevant to the content of this article.
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.143
Naser Kharroub, Abdul Aziz Bin Mat Isa,
Muhummad Khairul Islam
E-ISSN: 2224-2899
1762
Volume 21, 2024
APPENDIX
Fig. 1: Research Framework
Fig. 2: PLS Algorithm Results – First run
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Fig. 3: PLS Algorithm Results – Second run
Fig. 4: PLS Bootstrapping Results
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Fig. 5: Mediating Paths
Fig. 6: Mediation Analysis Procedure
Table 1. Questionnaire Development.
Variable
No. of items
Reference
Mission Clarity
4
[10]
Rewards & Compensation
5
[16]
Policy & Procedures
5
[20]
Career Development
3
[27]
Organizational Productivity
4
[32]
Talent Management and Succession Planning
Programs
4
[33]
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Table 2. Respondent Profile
Answer
Frequency
Percentage
Male
304
74.51
Female
104
25.49
20 – 25 years
18
4.41
26 – 30 years
107
26.23
31 – 35 years
92
22.55
36 – 40 years
94
23.04
41 years and above
97
23.77
Employee
278
68.14
Unit head
78
19.12
Section head
18
4.41
Division manager
13
3.19
Department Manager
17
4.17
Executive Director
3
0.74
Vice president
1
0.25
Table 3. Convergent Validity.
Variables
Items
Factor
loadings
Cronbach's
Alpha
Composite
Reliability
AVE
Career Development
CD1
0.880
0.813
0.888
0.725
CD2
0.858
CD3
0.814
Mission Clarity
MC1
0.709
0.799
0.868
0.623
MC2
0.787
MC3
0.823
MC4
0.832
Organizational Productivity
OP1
0.788
0.844
0.895
0.681
OP2
0.832
OP3
0.802
OP4
0.876
Policy & Procedures
PP2
0.886
0.941
0.956
0.845
PP3
0.893
PP4
0.943
PP5
0.952
Rewards & Compensation
RC1
0.839
0.856
0.902
0.698
RC3
0.849
RC4
0.819
RC5
0.834
Talent Management and Succession
Planning
TMSP1
0.751
0.815
0.878
0.643
TMSP2
0.807
TMSP3
0.828
TMSP4
0.818
Table 4. Discriminant validity - Fornell and Larcker Criterion
CD
MC
OP
PP
RC
TMSP
CD
0.851
MC
0.540
0.789
OP
0.527
0.877
0.825
PP
0.110
0.092
0.132
0.819
RC
0.668
0.573
0.576
0.070
0.835
TMSP
0.656
0.655
0.678
0.165
0.666
0.802
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Table 5. Discriminant validity - HTMT.
CD
MC
OP
PP
RC
TMSP
CD
MC
0.656
OP
0.619
0.824
PP
0.105
0.094
0.135
RC
0.786
0.692
0.670
0.082
TMSP
0.783
0.800
0.810
0.172
0.793
Table 6. PLS Bootstrapping Results.
Hypothesis
Std.
Beta
Std.
Error
T values
P values
Decision
Confidence Intervals
f2
Effect size
VIF
R2
Lower
Upper
H1
MC -> TMSP
0.097
0.058
1.671
0.045
Supported
0.003
0.193
0.036
Small
2.533
0.622
H2
RC -> TMSP
0.253
0.060
4.236
0.000
Supported
0.154
0.359
0.283
Medium
2.083
H3
PP -> TMSP
0.009
0.039
0.225
0.411
Rejected
-0.117
-0.022
0.013
No effect
1.025
H4
CD -> TMSP
0.276
0.047
5.864
0.000
Supported
0.192
0.354
0.299
Medium
1.946
Table 7. PLS bootstrapping - Total Indirect Results.
H
Relationship
Path P1
Beta
Path P2
Beta
Path P3
Beta
Indirect
P1*P2
Std
Error
t value
P value
Decision
H5
MC -> OP ->
TMSP
0.805
0.290
0.103
0.233
0.055
4.274
0.000
Supported
H6
RC -> OP ->
TMSP
0.095
0.290
0.255
0.028
0.014
1.966
0.025
Supported
H7
PP -> OP ->
TMSP
0.049
0.290
0.070
0.014
0.007
2.045
0.021
Supported
H8
CD -> OP ->
TMSP
0.024
0.290
0.270
0.007
0.011
0.646
0.259
Rejected
Table 8. Final decision on mediating effect.
H
Relationship
Is P1*P2
significant?
Is P3 significant?
P1*P2*P3
Mediation size of the
effect
H5
MC -> OP -> TMSP
Yes
Yes
Positive
Complementary
(Partial mediation)
H6
RC -> OP -> TMSP
Yes
Yes
Positive
Complementary
(Partial mediation)
H7
PP -> OP -> TMSP
Yes
Yes
Positive
Indirect only
(Full mediation)
H8
CD -> OP -> TMSP
NO
Yes
Positive
Direct only
(No mediation)
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DOI: 10.37394/23207.2024.21.143
Naser Kharroub, Abdul Aziz Bin Mat Isa,
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