19-06-2012, 02:33 PM
Potential appraisal.
INTRODUCTION
Potential appraisal is another powerful tool of employee development. Whether managers realise it or not, they are accustomed to make potential assessments. Every time a manager recommends or fails to recommend an employee for a promotion, a potential assessment has, in fact, been made. The process of assessing the managerial potential of employees deals with the question of whether or not they have the ability to handle positions in the future which involve considerably more responsibility than what they have right now. As long as individuals are viewed as being able to handle increased or different responsibilities, they would be considered to have potential (either latent or visible).
Potential appraisal may thus 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. This would help determine the promotabilty of an individual to a higher position and help chalk out his career plan. The fundamental difference between reviewing performance and assessing potential is in the criteria used. In reviewing performance, the criterion used is what goals the employee achieved and what skills he or she currently possesses that could be indicators of his or her ability to assume different or more advanced responsibilities. It is this that makes potential appraisal a very crucial & critical area.
If an employee without requisite abilities is promoted to a higher position and does not perform as per expectations, then it becomes impossible to demote him. Thus, he is unable to perform at the higher level and becomes a ‘passenger’ in the system. It is rightfully assumed that every individual has potential, low or high. Many organizations have people whose potential being low; performance too is not up to the mark. Whilst the question in our minds hovers around how such people got into the system, the fact remains that they do not contribute to the organization’s performance. If appraisal process implemented well, professional performance and potential appraisal could take the organisation on a fast development track and faster productivity through people.
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 organizations consider and use potential appraisal as a part of the performance appraisal processes.
Potential appraisal is one of the most important requirement for successful business and human resource policy (kressler 2003). Rewarding and promoting effective performance in organization, as well as identifying ineffective performers for developmental programs or other personnel actions are essential to effective human resource management (Pulakos 2003).
Project on potential appraisal was done by many, and the research process carried out to find out the employee’s potential. Sajitha Nair had done a project on potential appraisal for succession planning in the year 2005. She looked at the competencies required by the person who will fit in the job role. Then looked at the competencies possessed by the person and did a gap analysis. She found that everyone excels in all key actions, full mastery of all competencies.
Gauging employee’s potential for managerial skills was done by Jasmine (2006). She found that employees lack in decision making skills so that should be improved by various training methods. Shradha (2006) did a research study on potential appraisal process. She recommended that potential appraisal is an effective method to find out hidden talents and skills.
POTENTIAL APPRAISAL CAN SERVE THE FOLLOWING PURPOSES:
• To advise employees about their overall career development and future prospects
• Help the organization to chalk out succession plans
• Motivate the employees to further develop their skills and competencies.
• To identify the training needs.
Techniques of potential appraisal:
• Self – appraisals
• Peer appraisals
• Superior appraisals
• MBO
• Psychological and psychometric tests
• Management games like role playing
• Leadership exercises etc
Questions:
• The performance areas in which the improvement or development is indicated.
• The accomplishments and the targets achieved in the current appraisal period
• Overall rating of the performance
• What skills, knowledge, competencies and qualities should be developed?
• Has the employee taken any steps for improving his performance and his career development?
• Recommendations for the training and development of the employee
• Updating knowledge on the latest developments on their job related and subject areas.
• Rate the employee on the following characteristics or how does the employee fair on following behavioural characteristics:
o Decision making
o Independent
o Confidence towards the job
o Handling stress and pressure
o Inter-personal skills, both with superiors and subordinates
o Leadership, motivating and conflict handling
The past performance of the employee and the potential of performing in future helps to identify the hidden talents.