1. POTENTIAL APPRAISAL

2. Definiation
• The potential appraisal refers to the
identification of the hidden talents and skills
of a person. The person might or might not be
aware of them.
• Potential appraisal may be defined as a
process of determining an employee’s
strengths and weaknesses with a view to use
this as a predictor of his future performance.

3. • 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

4. Purpose / Need for Potential Appraisal
• Potential appraisal is another powerful tool of employee
development
• People earn promotions on the basis of their past
performance
• There could be a difference in the roles played by person
before and after promotion
• Past performance may not be a good indicator of suitability
for a higher role
• Inform employees about their future prospects
• Help the organization chalk out a suitable succession plan
• Update training efforts from time to time
• Advise employees about what they must do to improve
their career prospects

5. Categories of Potential
• Turn Potential - next level
• Growth Potential – more complex at the same
level in future
• Mastery – same level in a better manner

6. Indicators
• Sense of reality
• Imagination
• Power of analysis
• Breadth of vision
• Persuasion

7. Techniques Of Potential Appraisal:
Self – appraisals
Peer appraisals
Superior appraisals
MBO
Psychological and psychometric tests
Management games like role playing
Leadership exercises

8. Self Appraisal Form
The self appraisal form generally starts with the employee details like:
• The name of the employee
• Designation
• Date of joining
• Date of last appraisal
• Department
• Reporting officer
The next section is, commonly, designed to gather the information from the employee regarding his
on-the-job performance and his responsibilities:
• The current responsibilities held by the employee
• Accomplishments
• Goals for the next appraisal period
• Areas for improvement
• Training requirements felt for the present job
• Responsibilities the employee would like to add to his current responsibilities
• Problems faced
• Solutions tried
• Measures taken for personal and professional development
• Best and worst aspects of the job
• Is the superior supportive

9. • The form also includes a section where the employee rates himself on
various behavioral parameters like:
• Communication skills
• Inter-personal skills
• Problem-solving
• Team work
• Adaptability/Flexibility
• Initiative
• Decision Making
• Leadership
• Maturity
The self appraisal form also includes a section where the employee can
quote examples and incidents to support his ratings and answers.
The self appraisal form generally ends with a subjective section asking for
suggestions and the choice of discussing any other topic that the
employee feels the need to raise and discuss.

10. • Thus potential appraisal concentrates on the
future, based on the performance of the past
and helps in developing the personal interests
of the employees in alignment to the
organisational goals.