Potential Appraisal

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POTENTIAL APPRAISAL
Promotions A Big Problem!
 Promotions are given on the basis of
past performance.
 An assumption is being made that
competence in performing the
present role is a sufficient indicator of
competence to perform a higher and
different role in the organization.
 Seniority is given more priority then
Younger Talents.
 What do you mean by Potential

Appraisal?

POTENTIAL APPRAISAL

Qualities that exist Evaluation


and can be developed

• Beyond the Present Role.


Definition:-
Potential appraisal is concerned with
identifying the potential of an employee for
future development and promotion in the
organization.
Objective:-
To identify the potential of a given employee
to occupy higher positions in the
organizational hierarchy and undertake
higher responsibility.
Potential Appraisal – what’s the need ?

 inform employees about their future


prospects;

 help the organization chalk out of a suitable


succession plan;

 update training efforts from time to time;

 advise employees about what they must do


to improve their career prospect
ASSESSMENT CENTER
 An Assessment center is a comprehensive,
standardized procedure in which multiple
assessment techniques such as situational
exercise and job simulation are used to
evaluate the individual employee for a variety
of decisions.

 Most frequently the approach has been used


for individuals being considered for selection,
promotion, placement or special training and
development in management.
TOOLS USED

 Psychometric Tests
 Interviews- background interviews,
critical incident/situational interviews
 Leaderless Group Discussions
 In basket Techniques
 Management Games
 Role Plays
 Presentations
PROCEDURE USED

 Observation and Individual Assessor


Rating
 Assessor’s Discussions
 Consultants Role
 CEO’S Role
Organizations Using Assessment
Center Practice:

 SAIL
 Escorts
 TISCO
 Aditya Birla
 Castrol (India)
 Cadbury
 Wipro
 Siemens
Potential Appraisal In
Indian Organizational
Context
Examples of Organization using
Potential Appraisal’s:

 CROMPTON GREAVES LTD.


 BPL

 Dr. REDDY
Steps to be followed for a good
potential appraisal system
 Role Descriptions
 Qualities required to perform the roles
 Indicator of Qualities
- Rating by Others
- Psychological Tests
- Simulation Games and Exercises
- Performance Appraisal Records
 Organizing the System
 Feedback on Potential Appraisal for
Career Dev.
THANK YOU

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