Potentials appraisal
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Potential appraisal is a process used to determine an employee's strengths and weaknesses to predict future performance. This helps identify employees suitable for higher positions and assists in career planning. Potential appraisals are necessary because past performance may not indicate suitability for new roles. They inform employees of career prospects, help organizations plan succession, and guide employee development. An effective potential appraisal system clearly defines roles and required qualities, uses rating mechanisms like supervisor ratings, tests, and simulations, and provides feedback to employees.
Potentials appraisal
- 2. DEFINITION • 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. • This would help determine the probability of an individual to a higher position and help chalk out his career plan.
- 3. NECESSITY 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
- 4. NECESSITY FOR POTENTIAL APPRAISAL CONT’D • 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.
- 5. OBJECTIVE • To identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher responsibility Potential appraisals are required to: • 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
- 6. STEPS IN GOOD POTENTIAL APPRAISAL SYSTEM • Role Descriptions: Organizational roles and functions must be clearly defined • Qualities needed to perform the roles: Based on job descriptions, the roles to be played by people must be prepared • Rating mechanisms: Besides listing the functions and qualities, the potential appraisal system must list mechanisms of judging the qualities of employees such as: (i) Rating by others: The potential of a candidate could be rated by the immediate supervisor who is acquainted with candidate’s work in the past, especially his technical capabilities
- 7. RATING MECHANISMS CONT’D (ii) Tests: Managerial and behavioral dimensions can be measured through a battery of psychological tests (iii) Games: Simulation games and exercises 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
- 8. ORGANIZING THE SYSTEM HR manager must set up a system that will allow the introduction of the scheme smoothly incorporating answers to some complex questions like: (i) How much weightage to accord to merit in place of seniority in promotions? (ii) How much weightage to accord to each of the performance dimensions – technical, managerial, behavioural qualities? (iii) What are the mechanisms of assessing the individual on different indicators of his potential, and with what degree of reliability? Feedback • The system should provide an opportunity for every employee to know the results of his assessment • Employee 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 organization to appraise his potential and the results of such an appraisal