Advantages of potential appraisal are as follows:
1. Employee Development: Potential appraisal acts as an effective technique for the development of employees. Knowingly or unknowingly, the supervisors are familiar with the execution of potential appraisal of the employees.
The potential appraisal takes place every time when a supervisor approves or fails to approve the up-gradation of the employees.
2. Assessment of Individual: Potential appraisal facilitates in assessing the output of the employees to perform exceptionally at the topmost stage of performance in future endeavors, without any difficulties.
3. Providing Assistance to Organisation: Potential appraisal aids the organization by providing a means to check and improve the performance of the entire human resources, i.e., from bottom-level workers to the top-level managers.
This improvised performance of manpower leads to organizational efficiency and growth.