Chapter One — 1.1 Background to the Study

In recent years, Succession Planning has emerged as a critical factor shaping employee productivity across organizations operating in and around Selected Microfinance Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how succession planning relates to employee productivity has become an important area of both scholarly and practical concern.

Within the context of Selected Microfinance Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of succession planning on employee productivity, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on succession planning, there remains limited consensus on the precise nature of its relationship with employee productivity, particularly within Selected Microfinance Banks in Nigeria. Many organizations continue to make decisions about succession planning without a clear, evidence-based understanding of how those decisions ultimately affect employee productivity. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Succession Planning on employee productivity in Selected Microfinance Banks in Nigeria.
2. To assess the extent to which succession planning influences employee productivity within the study area.
3. To identify the challenges associated with succession planning in relation to employee productivity.
4. To recommend strategies for optimizing succession planning in order to improve employee productivity.

1.4 Research Questions

1. What is the effect of succession planning on employee productivity in Selected Microfinance Banks in Nigeria?
2. To what extent does succession planning influence employee productivity within the study area?
3. What challenges are associated with succession planning in relation to employee productivity?
4. What strategies can be adopted to optimize succession planning in order to improve employee productivity?

1.5 Significance of the Study

Beyond its academic contribution to the field of business administration, this study has practical value for management teams within Selected Microfinance Banks in Nigeria seeking to understand how succession planning translates into measurable outcomes around employee productivity. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this BSc study confines itself to Selected Microfinance Banks in Nigeria, focusing specifically on how succession planning relates to employee productivity within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.