UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

Potential Appraisal
Performance appraisal has two objectives:
i. Evaluation of an employee in his present role. Making him to do his present
job in better ways.
ii. His suitability for higher order job, promotion and higher responsibility for
which his potential appraisal.
Steps in potential appraisal
1. Determination of role dimension for which an employee’s potential is to be
appraised. The role dimensions can be identified by job description and
specification which provide information about the responsibilities involved in a job
and attributes required.
2. The mechanism for appraising these attributes in an employee should be
determined.
3. Potential appraisal based on the scoring of attributes.
4. Potential appraisal to be linked to other human resource management elements
such as providing feedback, counseling, training, development and job rotation.
Self Assessment Question (SAQs)
Summary
1. What are the objective of performance appraisal?
2. State the various method of performance appraisal.
3. What are assessment centres?
4. What is potential appraisal?
Performance appraisal is a systematic evaluation of personnel by superiors or
others familiar with their performance. The objectives of performance appraisal is many
and varied. It may be for salary increase, promotion or to give feed back to employees. A
systematic performance appraisal consists of the following:
i. Defining objectives of appraisal.
ii. Defining appraisal norms.
iii. Designing appraisal programme.
iv. Implementing appraisal programme.
v. Feedback and
vi. Post appraisal actions.