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Potential Appraisal

IntroductionThe potential appraisal refers to the appraisal i.e.identification of the hidden talents and skills of a person.The person might or might not be aware of them.Potential appraisal is a future-oriented appraisal whosemain objective is to identify and evaluate the potential ofthe employees to assume higher positions and

responsibilities in the organizational hierarchy. Manyorganizations consider and use PA as a part of theperformance appraisal processes.


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Definitions

Potential appraisal is a process of determiningan employee s strengths and weaknesses with a

view to use this as a predictor of his futureperformance.

Potential appraisal is a future oriented appraisalaimed to identify and evaluate the potential of

the employees to assume higher positions andresponsibilities in the organizational hierarchy


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Need For Appraisal

Create competitive environment foe betterperformance

Infuse a healthy organizational culture Boosting the morale and motivation of the

employees

Attracting and retaining best talent


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Purpose or need of potentialappraisal

To inform employees of their future prospects To update training and recruitment activities

To advise employees about the work to be doneto enhance their career opportunities

To enable the organization to draft amanagement succession programme

Motivate the employees to further develop theirskills and competencies


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CHARACTERISTICS

Process of identifying hidden skills and abilitiesin a person

The time for potential appraisal is not fixed It is future oriented process Part of performance appraisal

It does not guarantee promotion


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PARAMETERS OR INDICATORS OFPOTENTIAL

Sense of reality Creative imagination Power of analysis

Breadth of vision Leadership


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STEPS AND REQUIREMENTS

1)Role description- A good potentialappraisal system would be based on

clarity of roles and functions associatedwith the different roles in an organization.The requirement is extensive jobdescription to be made available for each

job. These job descriptions should spellout the various functions involved inperforming the job.


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2)QUALITY REQUIRED

A) Technical knowledge and skillsB) Managerial capabilities and qualities

C) Behavioral capabilities

D) Conceptual capabilities


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INDICATORS OF QUALITIES

Ratings by others Psychological test

Simulation games and exercises Performance appraisal records


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3)ORGANIZING THE SYSTEM

Once the functions , the qualities required toperform these functions , indicators of these

qualities , and mechanism for generating theseindicators are clear , the organization is in asound position to establish and operate thepotential appraisal system.


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FEEDBACK

If the organization believes in the developmentof human resources it should attempt to

generate a climate of openness. Such a climateis required for helping the employees tounderstand their strengths and weaknesses andto create opportunities for development.


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TECNIUQES OF POTENTIAL APPRAISAL

Self appraisal-

Self appraisal form

* Name of employee

* Designation

* Department* Reporting officer

* Responsibilities

* Accomplishments* Goals for next appraisal period

* Area of improving

* Problems faced


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Solutions tried Measures taken for personal and professional

development Best and worst aspects of the job Is the superior supportive


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FORM ALSO INCLUDE BEHAVIOURALPARAMETERS

Communication skills Inter-personal skills

Problem-solving Team work Adaptability/flexibility

Decision making Leadership


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Peer appraisal Superior analysis

MBO Psychological tests Management games

Leadership exercises

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