Question

What is Potential Appraisal? How does it measure?

Answer 1

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 organisations consider and use potential appraisal as a part of the performance appraisal processes. It 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.

It can be measured through:

• Self – appraisals
  
• Peer appraisals
  
• Superior appraisals
  
• MBO (Management By Objectives)
  
• Psychological and psychometric tests
  
• Management games like role playing
  
• Leadership exercises