This document discusses potential appraisal, which is a process for identifying employees' talents and skills that may be useful for future higher roles, even if not currently used. It aims to evaluate potential for increased responsibilities. Key points include that potential appraisal looks at hidden abilities, is future-oriented, and does not guarantee promotion. It helps organizations plan succession and guide employee development. Effective potential appraisal requires clear job descriptions, identifying qualities needed for roles, and indicators to assess those qualities. Feedback is important to help employees understand strengths and areas for growth. Self-appraisal and ratings from others are techniques used.

1. Unit 4

2. Meaning
Potential Appraisel
Qualities that exist and Evaluate
can be developed

3. INTRODUCTION
❑ The potential appraisal refers to the appraisal
i.e. identification of the talents and skills of a
person. The performance might or might not
be aware of them.
❑ Potential appraisal is a future-oriented
appraisal whose main objective I to identify
and evaluate the potential of the employees
to assume higher positions and responsibility
in the organizational hierarchy.

4. DEFINITION
❑ Potential appraisal is a process of
determining an employee's strengths and
weaknesses with a view to use this 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
potential and responsibilities in the
organizational hierarchy.

5. CHARACTERISTICS
❑ Process of identifying hidden skills and
abilities in a person
❑ The time for potential appraisal is not fixed
❑ It does not guarantee promotion
❑ Part of performance appraisal
❑ It is future oriented prosess

6. PURPOSE OF POTENTIAL
APPRAISAL
❑ To inform employees of their future prospects
❑ To enable the organization to draft a
management succession programme
❑ To update training and recruitment activities
❑ To advise employee about the work to be
done to enhance their career opportunities
❑ Motivate the employee to future develop their
skills and competencies

7. INDICATORS OF
POTENTIAL
❑ Sense of reality
❑ Creative imagination
❑ Power of analysis
❑ Breadth of vision
❑ Leadership

8. 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.
REQUIREMENTS

9. 2) QUALITY REQUIRED
❑ Technical knowledge and skills
Managerial capabilities and qualities
Behavioral capabilities
Conceptual capabilities
❑
❑
❑

10. INDICATORS OF QUALITIES
❑ Rating by other
❑ Psychological test
❑ Simulation games and exercises
❑ Performance appraisal records

11. 3) ORGANIZING THE SYSTEM
❑ Once the function , 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.

12. 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
employee to understand their strengths and
weaknesses and to create opportunities for
development.

13. TECNIUQES OF POTENTIAL
APPRAISAL
❑ self appraisal self appraisal from
❑ Name of employee
❑ Designation
❑ Department
❑ Reporting officer
❑ Responsibilities
❑ Accomplishments
❑ Goals for next appraisal period
❑ Measures taken for personal and professional
development
❑ Best and worst aspects of the job