Question $2(25$ Marks$)$

$$Succession planning is a critical component of building a sustainable future, ensuring that the organisation has a steady supply of leaders who can drive high performance. Following best practices and making succession planning an ongoing process, organisations can ensure they are well$-$positioned for continued success." Given the need for an effective succession plan, one needs to understand individual employee performance by using measures such as the $360-$degree rating system.

Critically evaluate how the $360-$degree feedback system can be effectively utilised to identify performance improvement areas within an organisation. In your analysis, discuss the key stakeholders involved in the process, outlining the specific roles each plays in ensuring the system$$s success. Additionally, recommend best practices for conducting appraisals using this method to enhance its effectiveness.