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Potential appraisal - July 11th, 2009
The research is about studying the Employee's potential level in NELCAST LTD at Head Office. The objective of this project is to find out the capabilities and skills of the employee's and request the management to provide necessary training required for the present job or for the higher position or responsibility and predicting his or her future performance which aid the organization in fitting the right person in the right job and in improving company's performance.
Potential appraisal is an important part of the appraisal process. Appraising employee’s potential helps to evaluate his/her capability for growth and development to greater challenges, responsibilities and positions in the organizational hierarchy. Most organization incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning.
This 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 organizational goals.
An interview was made and the evaluation of the employee’s potential level collected in a questionnaire through superior appraisal process. This study would help the management to assess the capabilities of the employees accordingly they can provide training and take necessary measures to improve their capabilities and skills to fulfill the present and future requirements and various statistical tools used over the data collected to ascertain the employee’s potential.
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
Psychological and psychometric tests
Management games like role playing
Leadership exercises etc.
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:
o Decision making
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.
SELF APPRAISAL FORM
Self appraisal is the self evaluation where the employee himself gives the feedback or his views and points regarding his performance. The employee himself critically analyses the performance, his strengths, weaknesses, accomplishments, problems faced, the training and development needs (if any) etc. The self appraisal form generally starts with the employee details like:
• The name of the employee
• Date of joining
• Date of last appraisal
• Reporting officer
The next section is, commonly, designed to gather the information from the employee regarding his on-the-job performance and his responsibilities:
• The current responsibilities held by the employee
• Goals for the next appraisal period
• Areas for improvement
• Training requirements felt for the present job
• Responsibilities the employee would like to add to his current responsibilities
• Problems faced
• Solutions tried
• Measures taken for personal and professional development
• Best and worst aspects of the job
• Is the superior supportive
The form also includes a section where the employee rates himself on various behavioral parameters like:
• Communication skills
• Inter-personal skills
• Team work
• Decision Making
The self appraisal form also includes a section where the employee can quote examples and incidents to support his ratings and answers.
The self appraisal form generally ends with a subjective section asking for suggestions and the choice of discussing any other topic that the employee feels the need to raise and discuss.
Potential appraisal is an important part of the appraisal process. Appraising an employee’s potential helps to evaluate 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 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.
Potential appraisal is another powerful tool of employee development. 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.
GAUGING EMPLOYEES POTENTIAL FOR MANAGEMENT POSITION
The aim of potential assessment is to identify training and development
needs, provide guidance on possible directions in which an individual's
career might go, and indicate who has potential for promotion.
A more comprehensive approach is provided by the use of assessment centres. These incorporate a range of assessment techniques and typically have the following features:
• The focus of the centre is on behaviour.
• Exercises are used to capture and simulate the key dimensions of the job. These include one to one role plays and group exercises. It is assumed that performance in these simulations predicts behaviour on the job.
• Interviews and tests will be used in addition to group exercises.
• Potential is measured in several dimensions in terms of the competencies required to achieve the target level of performance in a particular job or at a particular level in the organization.
• Several candidates or participants are assessed together to allow interaction and to make the experience more open and participative.
• Several assessors or observers are used in order to increase the objectivity of assessments. Involving senior managers is desirable to ensure that they 'own' the process. Assessors must be carefully trained.
Assessment centres provide good opportunities for indicating the extent to which candidates match the culture of the organization. This will be established by observation of their behaviour in different but typical situations, and by the range of the tests and structured interviews that are part of the proceedings. Assessment centres also give candidates a better feel for the organization and its values so that they can decide for themselves whether or not they are likely to fit.
Last edited by bhautik.kawa; April 12th, 2015 at 09:08 PM..
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Re: Potential appraisal
Re: Potential appraisal - May 28th, 2015
Appraisal has been the silent weapon, which is mainly used to uplift the confidence and also provide great sense of belonging.Potential Appraisal is the best form to credit your employee. There are lots of benefits given below
Benefits of potential Appraisal:
1) Sense of Belonging
2) Uplifting Confidence
3) Highly Credible
4) Positive outcomes
5) Effective communication