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 foe 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 appraisalSelf 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