POTENTIAL APPRAISAL.ppt-1.pptx Bba Hrd 2

It is abaut chapter human resource development

1. POTENTIAL APPRAISAL Presented by:- Vaibhav Mishra ID:-96230208 Utkarsh Tiwari ID:-96230410 Under guidence :- Shagufta ali United institute of management( F UGS)

2. INTRODUCTION 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 PA as a part of the performance appraisal processes.

3. THE PURPOSE OF POTENTIAL REVIEW ARE: to inform employees of their future prospects; to enable the organisation to draft a management succession programme; to update training and recruitment activities; to advise employees about the work to be done to enhance .their career opportunities.

4. TECHNIQUES OF POTENTIAL APPRAISAL : Self – appraisals Peer appraisals Superior appraisals MBO Psychological and psychometric tests Management games like role playing Leadership exercises etc.

5. STEPS OF POTENTIAL APPRAISAL SYSTEM: 1) Role Description: A clear role description is required to have a good potential appraisal system. There should be clarity of roles and functions—which means extensive job descriptions and various functions involved to perform the job . 2) Qualities Required: Besides clear descriptions of roles and functions, it is also important to have a detailed list of qualities required for the employee to perform and deliver. These qualities are usually broadly divided into four categories, which are listed below: technical knowledge and skills managerial capabilities and qualities behavioral capabilities conceptual capabilities

6. . 3) Indicators of Quality: A potential appraisal system should also include the various mechanisms for judging these qualities in an employee. These mechanisms for judging these qualities are: Rating by others Psychological tests Simulation games and exercises Performance appraisal records

7. . 4) Organising the system : Once the functions, the qualities required performing these functions, indicators of these qualities, and mechanisms for generating these indicators are clear, the organisation is in a sound position to establish and operate the potential appraisal system. Such establishment requires clarity in organisational policies and systematisation of its efforts . 5) Feedback:- If the organisation believes in the development of human resources it should attempt to generate a climate of openness. Such a climate is required for helping the employees to understand their strengths and weaknesses and to create opportunities for development. A good potential appraisal system should provide an opportunity for every employee to know the results of assessment. He should be helped to understand the qualities actually required for performing the role for which he thinks he has the potential, the mechanisms used by the organisation to appraise his potential, and the results of such an appraisal.

8. POTENTIAL APPRAISAL AT PHILIPS INDIA A method that was used at Philips N.V. for the purpose of the appraisal is known as the Philips model of the potential appraisal. This model works on a two-by-two matrix where two ends of potential and performance appraisal are combined . In this model, the capacity of managers to adjust in a dynamic environment of the market and their capability to take greater responsibilities for various tasks and decisions are evaluated at its initial stage.

9. . Further, these capacities are under continuous observation. This two-by-two matrix consists of the following categories:

10. CLASSIFICATIONS OF APPRAISES : 1. Low potential – low performanc : These employees are low on both dimensions. These can be advised to improve performance otherwise the result will be planned separation. 2.High potential-low performance : In order to utilize their high potential .these employees are shifted either to new locations or new departments. If still they do not improve their performance, they are reclassified as question mark for planned separation . 3.Low potential- high performance : They are performers termed as solid citizens. They lack potential for higher job. Therefore , they are encouraged to do their present jobs better. 4.High potential- high performance: They are termed as stars. More developmental efforts are directed towards them.

11. CONCLUSION: It may be unlikely for an individual not to upgrade his skills a nd abilities. Everyone wants to be recognised and improve themselves. Conducting regular appraisal process helps to inform employees about their future plan and growth. Potential appraisal also motivates the employees to further develop their skills and overall performance. It helps in manpower planning in an organisation, reducing the attrition rate in the organisation. Thus at the end we can see that potential appraisal is beneficial for both employee and the organisation.

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