Potential appraisal is used to assess the highest level of work an individual can handle successfully in the future without being overstretched. It helps organizations select and develop future managers to ensure continuous growth. During potential appraisal, an individual's talent, ambition, and limits must be identified. Promoting employees without assessing their potential may be a lose-lose situation. Key qualities assessed include analytical ability, creativity, realistic thinking, holistic vision, and leadership skills. Trainers must facilitate learning rather than just teaching. A job performance matrix evaluates employees on a grid based on actual achievements versus job objectives to identify types like stars, work horses, problem children, and deadwood.