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Replacement Chart

This article covers meaning, importance, parameters & example of Replacement Chart from HRM perspective.

Published by MBA Skool Team in Human Resources Terms Last Updated: September 21, 2024Read time:

What is Replacement Chart?

Replacement chart is a framework to identify employees who can replace earlier employees as a part of succession planning. Replacement chart lists the critical job roles in a company, the employees currently positioned in those roles, their competencies, the current vacancies and facilitates in future succession planning.

 

Importance of Replacement Chart

Each organization has several employees, which each employee having certain competencies & qualities. As and when employees retire or leave the organization, there becomes a vacancy. Against each vacant position, the competencies required for the position are mapped and then the employees in the organization with the requisite competencies are tagged and thus the potential replacements are found. The details of the potential candidates along with their age, skills, their experience and the competencies they need to satisfy the required position are listed. Then a comparative analysis of the experience and skillsets of the potential candidates with those required for the position is done. It is in this way that the company can organize its succession planning and can identify internal KSAs (Knowledge, Skills and Abilities).

 

Replacement Chart Parameters

Replacement charts classify employees into four groups.

1. Employees ready for promotion.

2. Employees who would be ready for future promotions if given additional training.

3. Employees performing satisfactorily but needs motivation and further improvements.

4. Employees who are not fit to be on employment & need to be replaced.

 

The replacement charts answer the following questions.

1. What is the organizational history of an employee and the competencies that the employee possesses?

2. Who are the most eligible replacement options for a vacant position?

3. What are the benefits of selecting a particular employee for the incumbent position relative to another employee? Changes must be made to replacement charts regularly, at least once annually, and with changes in market scenario and economic conditions.


Example of Replacement Chart

A personnel replacement chart is shown below. This example shows how for the position of a Dean, there are three potential candidates, and based on their past performance, personality traits, eligibility etc. who can be the best candidate to replace the dean and fit the job role the best.



A slightly different term is a position replacement chart which lists down all the employees that can replace an employee holding a job position. Personnel replacement charts are computerized for easy accessibility and modification as per requirement. Thus, it aids in determining the benefits of selecting an employee for a position quantitatively and prevents the organization from losing revenues in case of any unforeseen exit from the organization.

Hence, this concludes the definition of Replacement Chart along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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