A Study on Potential Appraisal: The strategy for taking the Business Ahead

Abstract

Performance appraisal is a systematic evaluation of the present capabilities of the employees in an organization. This is organized on the principles of goals, Management by Objectives and Balance Score Card philosophies. Performance appraisal has a historical dimension and is primarily concerned with the performance of an employee. However Past performance may not be a good indicator of the suitability of an employee for a higher role. To take the business to the next level, organizations have to lay more emphasis on the Potential Appraisal of the Employees in addition to their Performance, since Potential Appraisals gauge the skill and attitude the employee may possess to occupy higher positions in the organizational hierarchy and undertake higher responsibilities. The objective of the study is to highlight the importance of Potential appraisal that gives a whole new dimension to the Appraisal System. The study is Descriptive in nature and Convenience sampling process was used for data collection. The inference of the data analysis indicated that there were discrepancies in successors identified based on performance appraisal. Based on the findings, corrective interventions were suggested. This study implies that Potential Appraisal has a direct impact on business by  enhancing competencies and capabilities of the employees, developing leaders and building strong successors to raise the bar of business.