Potential appraisal is an important part of the appraisal process. Appraising an employee’s potential helps to evaluate and his/her capability for growth and development to greater challenges, responsibilities and positions in the organisational hierarchy. Most organisations incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning.
This Performance 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.
With the help of the potential appraisal form, the employees/ individuals are judged on various performance and behavioural parameters like:
- 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:
- Decision making
- Confidence towards the job
- Handling stress and pressure
- Inter-personal skills, both with superiors and subordinates
- Leadership, motivating and conflict handling
The past performance of the employee and the potential of performing in future helps to identify the hidden talents.