Potential Appraisal

POTENTIAL APPRAISAL
Potential appraisal
• Potential typically represents latent qualities
and levels of talent of an individual which can
be manifested in concrete terms while
performing various tasks/jobs of higher level.
• There may be areas where the employee

might not have an opportunity to demonstrate
the potential ability
DEFINITION
• The potential appraisal refers to the appraisal i.e.
identification of the hidden talents and skills of a
person of which the person might or might not be
aware.
• Potential appraisal is a future – oriented appraisal it
evaluates the potential of the employees to assume
higher positions and responsibilities in the
organizational hierarchy.
It is a process of determining an employee’s strengths
and weakness with a view to use this as a predictor of
his future position.
• Moreover there are areas with which even the
performance appraisers are not familiar.
Potential might include specific skills that an
innovative/challenging task or job might be
demanding
NEED OF POTENTIAL APPRAISAL
• To assess an individual capabilities in terms of the
highest level of work the individual will be able to
handle comfortably and successfully in future without
being overburdened or stressed
• To inform employees of their future prospects.
• To assist the organization in discharging its
responsibility of recruiting, selecting and developing
managers for the future to ensure its continuous growth
• Attracting and retaining the best talent.
• To infuse healthy organisation culture.
NEED OF POTENTIAL APPRAISAL
• To enable the organization to frame out a
management succession program
• To provide input to manpower planning
activities related to competencies and skills
available in the organization
• To advise and counsel employees about the
level work they can easily perform to exploit
upcoming career opportunities
The potential of an employee need to be
appraised based on these criteria
Important parameters to be considered for
positional elevation
Analytical Power
Creative Imagination
Sense of Reality
Effective Leadership
Conceptual Skills
Planning and organizing Skills
• Willingness to take additional responsibilities
• Result orientation
• Teamwork
• Subordinate Development
• Negotiation skills
TECHNIQUES
1)SELF – APPRAISAL
2) PEER APPRAISAL
3) MANAGER APPRAISAL
4)MBO
5) MANAGEMENT GAMES
6)PSYCHOLOGICAL TESTS
IMPORTANCE
1) Employee development
2) Assessment of individual
3) Providing assistance to organisation
Problems
1) FUTURE ORIENTED
2) BIASNESS OF BOSS
3) REQUIRES SUPPORT
4) COMPETENCIES RELATED
PROCESS
ROLE DESCRIPTION
QUALITIES NEEDED TO PERFORM ROLES
RATING MECHANISMS
ORGANISING THE SYSTEM
FEEDBACK
Role Description:
• A good potential appraisal system would be
based on clarity of roles and functions
associated with the different roles in an
organisation.
• This requires extensive job descriptions to be
made available for each job. These job
descriptions should spell out the various
functions involved in performing the job.
Qualities Required
• Besides job descriptions, it is necessary to
have a detailed list of qualities required to
perform each of these functions.
These qualities may be broadly divided into
four categories
• (1) technical knowledge and skills,
• (2)managerial capabilities and qualities,
• (3) behavioural capabilities, and
• (4)conceptual capabilities.
Rating mechanisms
A good potential appraisal system besides
listing down the functions and qualities would
also have various mechanisms for judging
these qualities in a given individual. Some of
the mechanisms for judging these qualities are
- (a) rating by others, (b) psychological tests,
(c) simulation games and exercises, (d)
performance appraisal records
Organising the System
Once the functions, the qualities required to
perform these functions, indicators of these
qualities, and mechanisms for generating these
indicators are clear, the organisation is in a sound
position to establish and operate the potential
appraisal system.
Such establishment requires clarity in
organisational policies and systematisation of its
efforts.
Feedback
If the organisation 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.
A good potential appraisal system should provide an opportunity
for every employee to know the results of assessment.
He should be helped to understand the qualities actually
required for performing the role for which he thinks he has the
potential, the mechanisms used by the organization to appraise
his potential, and the results of such an appraisal.
• A good potential appraisal system provides
opportunities continuously for the employee
to know his strengths and weaknesses.
• These are done through periodic counselling
and guidance sessions by either the personnel
department or the managers concerned.
• This should enable the employee to develop
realistic self-perceptions and plan his own
career and development.
The Philips model
The Philips Model
• It is clear from the above figure that the low
potential-low performance employees are
considered question marks.
If they fail to bring about the desired
improvement in their performance, the
organisation moves towards a planned
separation of such employees
• In the next quadrant of high potential-Iow
performance come the problem child.
• Such employees require close monitoring and
need a new scenario for work as a strategy so
as to tap their full potential.
• The third quadrant of high potential-high:
performance pertains to star performers'
who need to be engaged with complex
assignment and groomed for top positions in
the organisation
• The fourth quadrant of low potential high
performance rates to employees called solid
citizens.
Such employees have high skills but low
potential to go beyond their current
jobs.

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POTENTIAL APPRAISAL

• There may be areas where the employee

QUALITIES NEEDED TO PERFORM ROLES

ORGANISING THE SYSTEM

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