Which statement describes the function of a replacement chart in succession planning?

Which statement describes the function of a replacement chart in succession planning?

• A. It lists all current employees and their job titles.
• B. It tracks the annual HR budget.
• C. It records external recruiting vendors' performance.
• D. It documents potential successors for key positions and readiness levels, enabling development plans and contingency planning.

Answer: (D)

In succession planning, a replacement chart maps out who could fill key roles in the organization and how ready they are to step in. It identifies potential internal candidates for critical positions and assigns readiness levels (for example, ready now, ready in a certain timeframe, or needing development). This enables targeted development plans—such as stretch assignments, training, or mentoring—so gaps are closed before a vacancy occurs. It also supports contingency planning by providing a prepared slate of successors and timelines to ensure leadership continuity if an unexpected departure happens. The other options don’t fit this purpose. Listing all current employees and their job titles describes an organizational directory rather than a plan for filling future vacancies. Tracking the annual HR budget is about financial resources, not identifying internal successors. Recording external recruiting vendors’ performance focuses on external sourcing rather than internal succession readiness.

In succession planning, a replacement chart maps out who could fill key roles in the organization and how ready they are to step in. It identifies potential internal candidates for critical positions and assigns readiness levels (for example, ready now, ready in a certain timeframe, or needing development). This enables targeted development plans—such as stretch assignments, training, or mentoring—so gaps are closed before a vacancy occurs. It also supports contingency planning by providing a prepared slate of successors and timelines to ensure leadership continuity if an unexpected departure happens.

The other options don’t fit this purpose. Listing all current employees and their job titles describes an organizational directory rather than a plan for filling future vacancies. Tracking the annual HR budget is about financial resources, not identifying internal successors. Recording external recruiting vendors’ performance focuses on external sourcing rather than internal succession readiness.