Potential appraisal is a part of performance appraisal that helps to identify the hidden talents and potential of the individuals. Identifying these potential talents helps in preparing the individuals for higher responsibilities and positions in the future. It focuses primarily on identifying the employee’s likely future roles within the organization.
Potential can be defined as ‘a latent but unrealised ability’. Potential includes the possible knowledge, skills, and attitudes the employee may possess for better performance There are many people who have the desire and potential to advance through the job they are in and wanting the opportunity to operate at a higher level of competence in the same type of work. The potential is the one that the appraiser should be able to identify and develop because of the knowledge of the job. This requires an in-depth study of the positions which may become vacant, looking carefully at the specific skills that the new position may demand and also taking into consideration the more subjective areas like ‘qualities’ required. There may be areas where the employee has not had a real opportunity to demonstrate the potential ability and there may be areas with which you, as the appraisers are not familiar.
The purposes of a potential appraisal are:
One of the important objectives of potential appraisal is to help employees to move upwards in the organization
The advantages of a thoroughly carried out potential appraisal are:
A good potential appraisal system provides opportunities continuously for the employee to know his strengths and weaknesses. These are done through periodic counseling 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.
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