Each and every person has some or the other talent. Some talents and skills they know about that while some are not known. The talent which he or she may not know is known as hidden talents. As it is correctly said by Delue –
“We all have hidden talents waiting to be discovered.”
And identifying these talents is done by Potential Appraisal. Potential Appraisal is also known as Potential Evaluation. Potential Appraisal is a crucial function of Human Resource Management. It is used by many organisations. Before moving further first we should know that what is potential appraisal? Potential Appraisal is an appraisal process which helps in identification of the hidden talents or skills which is present within a person. The person might or might not be aware of them. Appraising the potential of a human resource in a scientific and systematic manner can help an organisation in enhancing their corporate performance. It can be also defined as a new system of developing employees for occupying higher position in an organisation is called potential appraisal. It is a future – oriented appraisal and its main objective is to identify and evaluate the potential or the hidden talent of an employee so that he can take the higher position and responsibilities in the organisational hierarchy. The time for a potential appraisal is not fixed. The assessment activity is done under the discretion of managers. There are many organisations who uses potential appraisal as a part of performance appraisal process but potential appraisal is different from performance appraisal. Actually potential refers to the skills and abilities which an employee possess but which are not currently brought into use by an organisation. As these are the skills which helps an employee to take higher challenges on job in future. And when these untapped and unutilized qualities are put to use they are definitely going to give fruitful results to the organisation. The attributes and qualities which are hidden might be in the form of analytical power, creative thinking, innovative ideas, ability to predict future condition and changes, proactive, problem-solving, decision-making, etc. So, we have to find all these hidden talents which are there in an employee and have to make optimum use of these so that the goals of both the parties can be achieved. The main purposes of Potential Appraisal are –
- To make employees aware of their future prospects.
- To provide training and development activity to your employees.
- To provide career opportunities by advising them to work hard.
- To draft a management succession programmes.
These are the purposes for which potential appraisal takes place. Potential Appraisal can be used in a number of human resource management functions like human resource planning, career and succession planning, promotion and transfer decision and for training and development. But the main use of potential appraisal are –
- Employee Development – It is a powerful tool for developing our employees. Potential Appraisal also helps in developing the career of employees as it helps in identifying the hidden talent and skills of an employee. It helps the employee to know their certain competency which was earlier not known to them.
- Motivates Employees – As the organisation helps them to identify the talent which was within them but was not known to them. This motivates employees as know they can further develop their skills and competencies.
- Identifying Training Needs – Potential Appraisal helps the organisation to identify the training needs as such appraisal throws light on the hidden skills of employees and by providing them appropriate training program can help both organisation and employee to grow.
- Assistance to Organisation – It provides assistance to the organisation as now the duties and responsibilities can be provided to the potential employees and can ensure continuous growth of the organisation.
- Assessing the Individual – Potential Appraisal helps us to assess an individual that how much level of work an employee can handle comfortably and successfully.
As we know, appraisal system varies from organisation – to – organisation. But according to me potential appraisal should be followed by each and every organisation as it will help in building a strong relationship between the employee and the organisation.