Potential Appraisal• Introduction The 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 whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many organizations consider and use PA as a part of the performance appraisal processes.

Definitions

• Potential appraisal is a process of determining an employee’ s strengths and weaknesses with a view to use this as a predictor of his future performance.

• Potential appraisal is a future oriented appraisal aimed to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy

Need For Appraisal

• Create competitive environment for better performance

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

employees• Attracting and retaining best talent

Purpose or need of potential appraisal

• To inform employees of their future prospects• To update training and recruitment activities• To advise employees about the work to be done

to enhance their career opportunities• To enable the organization to draft a

management succession programme • Motivate the employees to further develop their

skills and competencies

CHARACTERISTICS

• Process of identifying hidden skills and abilities in a person

• The time for potential appraisal is not fixed• It is future oriented process• Part of performance appraisal• It does not guarantee promotion

PARAMETERS OR INDICATORS OF POTENTIAL

• Sense of reality• Creative imagination• Power of analysis• Breadth of vision• Leadership

STEPS AND REQUIREMENTS

1)Role description- A good potential appraisal system would be based on clarity of roles and functions associated with the different roles in an organization. The requirement is extensive job description to be made available for each job. These job descriptions should spell out the various functions involved in performing the job.

2)QUALITY REQUIRED

A) Technical knowledge and skills

B) Managerial capabilities and qualities

C) Behavioral capabilities

D) Conceptual capabilities

INDICATORS OF QUALITIES

• Ratings by others• Psychological test• Simulation games and exercises• Performance appraisal records

3)ORGANIZING THE SYSTEM

• Once the functions , the qualities required to perform these functions , indicators of these qualities , and mechanism for generating these indicators are clear , the organization is in a sound position to establish and operate the potential appraisal system.

FEEDBACK

• If the organization believes in the development of human resources it should attempt to generate a climate of openness. Such a climate is required for helping the employees to understand their strengths and weaknesses and to create opportunities for development.

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

• Solutions tried• Measures taken for personal and professional

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

FORM ALSO INCLUDE BEHAVIOURAL PARAMETERS

• Communication skills• Inter-personal skills• Problem-solving• Team work• Adaptability/flexibility• Decision making• Leadership

• Peer appraisal• Superior analysis• MBO• Psychological tests• Management games• Leadership exercises