Meaning of Potential Appraisal

A potential appraisal is one of the essential functions of HRM. When an unrecognized human potential is appraised by way of a well-ordered and methodical approach, it opens the doors of achieving the increased organizational performance.

The capabilities of an individual that are inherent but not yet utilized can be termed as ‘potential.’

A potential appraisal is identifying the concealed talents and skills possessed by the individuals that are exhibited on the job but are seldom used.

It is quite possible that the individual might be ignorant of the above inherent potentials. Analyzing and evaluating the potential of an employee is the foremost aim of this appraisal, and it is mainly future-oriented.


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