Disadvantages of potential appraisal are as follows:
1. Future-Oriented: Good performance of the worker is related to the previous work performance, whereas potential relates to the future performance.
Since potential appraisal aims to identify the future potentials, it is not necessary that the employee who has performed goodwill also perform well in his future job because the potential future job has not yet been performed ever.
2. Biasness of Boss: Potential appraisal is vulnerable to the approach of unnoticed partiality of a superior who is just one rank up than his subordinates.
3. Competencies Related: Potential appraisal means identifying the potential competencies for future performance.
To verify the potential capacity of the employees, the past performance record has to be analyzed, which is associated with Key Performance Areas (KPAs).
In case if the records of past performance do not give the facts regarding the potential capabilities, then the potential appraisal would be ineffective.
4. Requires Support: The job performance of the individual depends on the support lend by the organization. This support is actually given by the Reporting Officer and Reviewing Officer.
They provide their perspective or their outlook about the inherent potentials of the individual and his capabilities to work in a given situation. Without the support of his superiors as well as peers, the potential appraisal of the employee is not possible.