Potential appraisal identifies an employee's hidden talents and assesses their ability to assume higher roles. It differs from performance appraisal by focusing on unused abilities that could be applied in the future. Potential is judged based on present performance, traits, experience, age, and qualifications. The goals are to advise employees on career development, help organizations create succession plans, and motivate employees to improve their skills to support individual and organizational growth.

2.  The potential appraisal refers to the
appraisal i.e. identification of the hidden
talents and skills of a person. The person
might or might not be aware of them.
Potential appraisal is a future – oriented
appraisal whose main objective is to identify
and evaluate the potential of the employees
to assume higher positions and
responsibilities in the organizational
hierarchy. Many organisation’s consider and
use potential appraisal as a part of the
performance appraisal processes.
ARSHID-2010

3.  It is different from performance appraisal as
it refers to the abilities of the employees
that are not being used at the time of
appraisal. It searches for the latent abilities
of the employee in discharging higher
responsibilities in future.
 The potential of the employees is judged on
the basis of his present performance,
personality traits, past experience and age
and qualification. It also looks at the unused
skills and knowledge of an employee.
ARSHID-2010

4.  It aims at informing the employee their future
prospectus and helps the organization in drawing
your suitable successions plan. It also requires
updating the training efforts regularly and
advised the employees on things which they can
do to improve their career prospectus.
 Potential appraisal helps to identify what can
happen in future so that it can be guided and
directed towards the achievement of individual
and organizational growth and goals. Therefore,
potential should be included as a part of the
Performance appraisal in organisations.
ARSHID-2010

5.  Do you really know your employees’
potential?
 Are your investments, in terms of hiring
and development, profitable?
 Would you like to be able to attract and
keep the best candidates as well as be
recognized as a first-rate employer?
 Do you wish to know if a candidate has the
necessary management skills to hold down
a particular job?
ARSHID-2010

6.  Do you really know your employees’
potential?
 Are your investments, in terms of hiring
and development, profitable?
 Would you like to be able to attract and
keep the best candidates as well as be
recognized as a first-rate employer?
 Do you wish to know if a candidate has the
necessary management skills to hold down
a particular job?
ARSHID-2010

7. To advise employees about their overall
career development and future prospects
Help the organisation’s to chalk out
succession plans
Motivate the employees to further develop
their skills and competencies.
To identify the training needs.
ARSHID-2010

8.  The potential (career-enhancement
possibilities) of every employee is assessed
periodically.
 Such assessment is used for development
planning as well as for placement.
 Every year or two, the supervisor of a group
of employee assesses the potential of each of
them to perform different (usually higher
level) functions on the basis of the
supervisor’s observations and experiences
during that period.
ARSHID-2010

9. Potential
Appraisal
Data storage
Manpower
planning
Job rotation
and
enlargement
Training &
development
Feedback
and
counseling
Career
planning and
development
ARSHID-2010

10. Potential
Appraisal
Data storage
Manpower
planning
Job rotation
and
enlargement
Training &
devolopment
Feeddback
and
counselling
Career
planning and
devolopment
ARSHID-2010

11.  Data generated by potential appraisal can be
put to use in
 Man-job matching
 Computer based analysis
ARSHID-2010

12.  HRP lays emphasis on
Effective utilization of the existing resources
Ensure availability of RIGHT type of HR in future
 Potential Appraisal ’ll lead to
Identification of individual's capabilities
Career planning (OCP & ICP)
ARSHID-2010

13.  The ideal way to judge a person’s potential
would be to try the person on each job for
which his potential is being assessed.
 Organization uses potential before
introducing Job rotation and enlargement
 For individual Job rotation and enlargement
provide opportunity
 Test his potential
 Develop potential
ARSHID-2010

14.  Potential appraisal will suggest T&D w.r.t.
individuals’
 Strengths
 Weaknesses
 Scope of development
ARSHID-2010

15.  Feedback ’ll tell a person where he can go up
in hierarchy
 Counseling helps him to:
 Identify course of his development
 Develop himself accordingly
ARSHID-2010

16.  Identifies career plateaus
 Finds a suitable plateau for a person
ARSHID-2010