What do you mean by Potential Appraisal? POTENTIALPOTENTIAL APPRAISALAPPRAISAL

Qualities that exist Evaluation and can be developed

• Beyond the Present Role.

Overview of POTENTIAL APPRAISAL

How Indian organisations give How Indian organisations give promotions to their people?promotions to their people?

What is the nature of the Indian What is the nature of the Indian organisation?organisation?

At every designation each individual At every designation each individual has to perform different roles, has to perform different roles, responsibilities and functions.responsibilities and functions.

Promotions A Big Problem!Promotions A Big Problem! Promotions are given on the basis of Promotions are given on the basis of

past performance.past performance. - An assumption is being made that - An assumption is being made that competence in performing the competence in performing the

present present role is sufficient indicator of role is sufficient indicator of competence to perform a higher and competence to perform a higher and different role in the organisation. different role in the organisation. Seniority is given more priority then Seniority is given more priority then

Younger Talents.Younger Talents.

DefinitionDefinition:-:- Potential appraisal is concerned with Potential appraisal is concerned with

identifying the potential of an employee for identifying the potential of an employee for future development and promotion in the future development and promotion in the organisationorganisation..

ObjectiveObjective:-:-

To identify the potential of a given employee To identify the potential of a given employee to occupy higher positions in the to occupy higher positions in the organisational hierarchy and undertake organisational hierarchy and undertake higher responsibility.higher responsibility.

Why Potential Appraisal System is needed? It attempts to generate It attempts to generate

- Data about employees- Data about employees

- Their potential for occupying higher - Their potential for occupying higher positions from a variety of sources and helps positions from a variety of sources and helps the top management to make decisions.the top management to make decisions.

The organisation also has the responsibility The organisation also has the responsibility for developing the managerial talent so this for developing the managerial talent so this system also helps the management in system also helps the management in identifying employees whose capabilities can identifying employees whose capabilities can be developed.be developed.

Steps to be followed for a good potential appraisal system Role DescriptionsRole Descriptions Qualities required to perform the rolesQualities required to perform the roles Indicator of QualitiesIndicator of Qualities

- Rating by Others- Rating by Others

- Psychological Tests- Psychological Tests

- Simulation Games and Exercises- Simulation Games and Exercises

- Performance Appraisal Records- Performance Appraisal Records Organising the SystemOrganising the System Feedback on Potential Appraisal for Career Feedback on Potential Appraisal for Career

Dev.Dev.

Linkages with Other System

Feedback and CounselingFeedback and Counseling Training Training Job RotationJob Rotation Data StorageData Storage Manpower PlanningManpower Planning

Current Status and Experience Indian Organisations are yet to focus Indian Organisations are yet to focus

their attention on potential appraisal.their attention on potential appraisal. With Growth Opportunities all around, With Growth Opportunities all around,

their has been high mobility among their has been high mobility among executives. Due to this Mobility, most executives. Due to this Mobility, most organisations are not willing to invest organisations are not willing to invest their time and effort in identifying and their time and effort in identifying and developing the potential of managers.developing the potential of managers.

Potential appraisal is time consuming Potential appraisal is time consuming activity.activity.

Examples:

CROMPTON CROMPTON GREAVES LTD.GREAVES LTD.

BPLBPL Dr. REDDYDr. REDDY