Potential Appraisal & Performance Appraisal

Potential Appraisal Performance Appraisal
1. It is a future-oriented activity. It is both past and future-oriented activity.
2. In this the employee’s abilities are evaluated to judge if those abilities are worthwhile in future functions and work accountabilities. The extent up to which an individual has attained the targets or goals set by the organization forms the basis of performance appraisal.
3. The activity of appraising potential is associated with competencies. Performance appraisal activity is associated with key performance areas.
4. There are very fewer chances of examining the appraiser in newer roles by the appraisers as there are no past records. Appraisal has the previous data related to the employee performance for the performance appraisal.
5. The time period for appraising potential is uncertain. It is dependent on the manager who performs the potential appraisal. Performance appraisal is one after a fixed period of time.

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