The potential appraisal refers to the evaluation i.e. understanding of the hidden talents and skills of a person. The individual might or might not be aware of them. Potential appraisal is a future – oriented appraisal whose main goal is to identify and evaluate the potential of the employees to achieve higher positions and responsibilities in the organizational hierarchy.
On the other words, Potential appraisal helps to determine what can happen in the future so that it can be guided and directed towards the performance of individual and organizational development and goals. Therefore, many organizations assess and manage potential appraisal as a part of the performance appraisal processes. Moreover, the role of potential appraisal is to determine the potential of a given workers to occupy higher positions in the organizational hierarchy plus handle higher responsibilities. Potential appraisals are required to:
- Inform employees about their future prospects;
- Help the company check out of a appropriate succession plan;
- Update training efforts from time to time;
- Advisee employees about what they must learn to develop their career prospects.
Potential appraisal can perform the following purposes:
- To advise employees about their overall career development and future prospects
- Help the company to chalk out succession plans
- Motivate the employees to further enhance their skills and competencies.
- To identify the training needs.
Techniques of potential appraisal:
- Self – appraisals
- Peer appraisals
- Superior appraisals
- Psychological and psychometric tests
- Management games like role playing
- Leadership exercises etc.
Introducing a enormous Potential Appraisal System
The following are some of the steps needed to be followed at the time introducing a potential appraisal system:
Organizational functions along with functions should be defined simply. To this end, job descriptions should be prepared for each job.
Qualities required completing the functions:
Based on job descriptions, the functions to be played via individuals must be prepared (i.e., technical, managerial jobs as well as behavioral dimensions).
Besides listing the functions along with qualities, the potential appraisal process must provide mechanisms of judging the qualities of staffs as:
- Rating through others: The potential of a candidate might be rated by the current employer who is acquainted with the candidate’s work earlier, just his technical abilities.
- Tests: Managerial as well as behavioral dimensions can be measured via a battery of psychological tests.
- Games: Simulation games in addition to exercises (assessment centre, besides business games, in-basket, along with role play, etc.) could be used to display the potential of a nominated staff.
- Records: Performance records along with ratings of a nominated staff for his earlier jobs could be examined carefully on various dimensions such as motivation, creativity, besides risk taking ability, etc., which may play a vital concern in discharging his responsibilities in a new job.
Organizing the system:
After completing the earlier preliminaries, he should set up a way that will allow the introduction of the time quietly giving answers to specific puzzling questions:
- How much load time to assist in conditions of seniority in promotions?
- How much weight age to each of the performance dimensions; such as technical, besides managerial, in addition to behavioral qualities?
- What would be the mechanisms of assessing the body on different indicators of his potential and via what reliability?
The system should provide an option for every employee to see the works of his assessment. “He might be assisted to understand the qualities most needed for performing the purpose for which he thinks he gets the potential, the mechanisms utilized through the companies to evaluate his potential along with the results of such an appraisal”.