Potential AppraisalPotential Appraisal

• IntroductionIntroduction The potential appraisal refers to the appraisal i.e. The potential appraisal refers to the appraisal i.e.

identification of the hidden talents and skills of a identification of the hidden talents and skills of a person. The person might or might not be aware person. The person might or might not be aware of them. Potential appraisal is a future-oriented of them. Potential appraisal is a future-oriented appraisal whose main objective is to identify and appraisal whose main objective is to identify and evaluate the potential of the employees to evaluate the potential of the employees to assume higher positions and responsibilities in assume higher positions and responsibilities in the organizational hierarchy. Many organizations the organizational hierarchy. Many organizations consider and use PA as a part of the performance consider and use PA as a part of the performance appraisal processes.appraisal processes.

DefinitionsDefinitions

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

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

Need For AppraisalNeed For Appraisal

• Create competitive environment foe better Create competitive environment foe better performanceperformance

• Infuse a healthy organizational cultureInfuse a healthy organizational culture

• Boosting the morale and motivation of the Boosting the morale and motivation of the employeesemployees

• Attracting and retaining best talentAttracting and retaining best talent

Purpose or need of potential Purpose or need of potential appraisalappraisal

• To inform employees of their future prospectsTo inform employees of their future prospects

• To update training and recruitment activitiesTo update training and recruitment activities

• To advise employees about the work to be To advise employees about the work to be done to enhance their career opportunitiesdone to enhance their career opportunities

• To enable the organization to draft a To enable the organization to draft a management succession programme management succession programme

• Motivate the employees to further develop Motivate the employees to further develop their skills and competenciestheir skills and competencies

CHARACTERISTICSCHARACTERISTICS

• Process of identifying hidden skills and Process of identifying hidden skills and abilities in a personabilities in a person

• The time for potential appraisal is not fixedThe time for potential appraisal is not fixed

• It is future oriented processIt is future oriented process

• Part of performance appraisalPart of performance appraisal

• It does not guarantee promotion It does not guarantee promotion

PARAMETERS OR INDICATORS OF PARAMETERS OR INDICATORS OF POTENTIALPOTENTIAL• Sense of realitySense of reality

• Creative imaginationCreative imagination

• Power of analysisPower of analysis

• Breadth of visionBreadth of vision

• LeadershipLeadership

STEPS AND REQUIREMENTSSTEPS AND REQUIREMENTS

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

2)QUALITY REQUIRED2)QUALITY REQUIRED

A) Technical knowledge and skillsA) Technical knowledge and skills

B) Managerial capabilities and qualitiesB) Managerial capabilities and qualities

C) Behavioral capabilitiesC) Behavioral capabilities

D) Conceptual capabilitiesD) Conceptual capabilities

INDICATORS OF QUALITIESINDICATORS OF QUALITIES

• Ratings by othersRatings by others

• Psychological testPsychological test

• Simulation games and exercisesSimulation games and exercises

• Performance appraisal recordsPerformance appraisal records

3)ORGANIZING THE SYSTEM3)ORGANIZING THE SYSTEM

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

FEEDBACKFEEDBACK

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

TECNIUQES OF POTENTIAL APPRAISALTECNIUQES OF POTENTIAL APPRAISAL

• Self appraisal-Self appraisal-

Self appraisal formSelf appraisal form

* Name of employee* Name of employee

* Designation* Designation

* Department* Department

* Reporting officer* Reporting officer

* Responsibilities * Responsibilities

* Accomplishments* Accomplishments

* Goals for next appraisal period* Goals for next appraisal period

* Area of improving* Area of improving

* Problems faced* Problems faced

• Solutions triedSolutions tried

• Measures taken for personal and Measures taken for personal and professional developmentprofessional development

• Best and worst aspects of the jobBest and worst aspects of the job

• Is the superior supportiveIs the superior supportive

FORM ALSO INCLUDE BEHAVIOURAL FORM ALSO INCLUDE BEHAVIOURAL PARAMETERSPARAMETERS

• Communication skillsCommunication skills

• Inter-personal skillsInter-personal skills

• Problem-solvingProblem-solving

• Team workTeam work

• Adaptability/flexibilityAdaptability/flexibility

• Decision makingDecision making

• Leadership Leadership

• Peer appraisalPeer appraisal

• Superior analysisSuperior analysis

• MBOMBO

• Psychological testsPsychological tests

• Management gamesManagement games

• Leadership exercisesLeadership exercises