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..

  • To advise employees about their overall career development and future prospects
  • Help the organisation 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.

Know the Performance Appraisal Process