12/09/2009 Potential Appraisal

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VIRTUA L CLA SSROOM DISCUSSION GROUP BOOK MA RK TA KE NOTES

Potential Appraisal
In most Indian organizations, people earn This web page is not available.
promotions on the basis of their past
performance. The past performance is
considered a good indicator of future job The web page at null
success. This could be true, if the job to be permanently to a new web address.
played by the promotee are similar. However,
in actual practice, the roles that a role holder
played in the past may not be the same he is Here are some suggestions:
expected to play if he assumes a different Reload this web page later.
job after his transfer or promotion to a new
position. Past performance, therefore, may
not be a good indicator of the suitability of More information on this error
an indicator for a higher role.
To overcome this inadequacy, organizations
must think of a new system called potential
appraisal. The objective of potential appraisal
is to identify the potential of a given
employee to occupy higher positions in the
organizational hierarchy and undertake higher
responsibilities.
Potential appraisals are required to:
inform employees about their future
prospects;
help the organization chalk out of a
suitable succession plan;
update training efforts from time to
time;
advise employees about what they
must do to improve their career
prospects.
Introducing a Good Potential Appraisal
System
Steps to be followed while Introducing a
Good Potential Appraisal System:
The following are some of the steps required
to be followed while introducing a potential
appraisal system:
Role Descriptions: Organizational roles
and functions must be defined clearly.
To this end, job descriptions must be
prepared for each job.
Qualities needed to perform the
roles: Based on job descriptions, the
roles to be played by people must be
prepared (i.e., technical, managerial
jobs and behavioral dimensions).
Rating mechanisms: Besides listing
the functions and qualities, the
potential appraisal system must list
mechanisms of judging the qualities of
employees such as:

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 12/09/2009 Potential Appraisal
i. Rating by others:
The potential of a
candidate could be
rated by the
immediate
supervisor who is
acquainted with the
candidate’s work in
the past, especially
his technical
capabilities.
ii. Tests: Managerial
and behavioral
dimensions can be
measured through a
battery of
psychological tests.
iii. Games: Simulation
games and exercises
(assessment centre,
business games, in-
basket, role play,
etc.) could be used
to uncover the
potential of a
candidate.
iv. Records:
Performance records
and ratings of a
candidate on his
previous jobs could
be examined
carefully on various
dimensions such as
initiative, creativity,
risk taking ability,
etc., which might
play a key role in
discharging his
duties in a new job.
 Organizing the
system: After
covering the
above
preliminaries, he
must set up a
system that will
allow the
introduction of
the scheme
smoothly giving
answers to some
puzzling
questions:
i. How much weightage to merit in
place of seniority in promotions?
ii. How much weightage to each of
the performance dimensions –
technical, managerial, behavioral
qualities?
iii. What are the mechanisms of
assessing the individual on
different indicators of his potential
and with what reliability?

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 12/09/2009 Potential Appraisal
 Feedback: The system must
provide an opportunity for
every employee to know the
results of his assessment. “He
should be helped to understand
the qualities actually required
for performing the role for
which he thinks he has the
potential, the mechanisms
used by the organizations to
appraise his potential and the
results of such an appraisal”.

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