Techniques of Potential Appraisal

    There are various techniques for identifying an individual’s potential. Some of them are as follows:


    In this type of appraisal, an individual self-assesses and provides the necessary evaluation of his outlook relating to his achievements.

    A self-appraisal datasheet is generally provided to the individual, in which the worker evaluates himself on many dimensions, tells about various achievements, virtues, susceptibilities, difficulties encountered during the work period, etc.

    These self-appraisals are quite helpful in situations where the supervisor needs to be employed in the potential appraisal process.

    Peer Appraisal

    This type of appraisal furnishes facts that remain unidentified from the evaluation by the bosses. The peers can throw light on such facts regarding the performance of employees.

    This is so because peers are well-versed with their co-workers’ strong and weak aspects, and they are more informed of their managerial and individual capabilities.

    The appraisal by the peers has more authenticity and credibility, unlike the appraisal by the bosses.

    Manager/Supervisor Appraisal

    It is the most commonly used method of potential appraisal. Most of the time, an appraisal by a superior is appropriate and useful; however, it cannot always be applied.

    Appraisals by the existing supervisors are objective and provide an extensive understanding of the performance of the workers.


    MBO includes collective goal-establishment in which both the superior and subordinates come together to establish goals.

    Subordinates are provided with an opportunity to take part in the goal- an establishment of their relevant work areas. Thus, it would minimize ambiguity and maximizes efficiency on the job.

    One more significant thing in MBO is the collective evaluation. While giving feedback about performance, both superiors and subordinates are concerned in order to discuss the issues and barriers which took place while accomplishing the tasks.

    Psychological Tests

    Psychological compositions like cognitive and impulsive functioning present in a certain worker are mainly evaluated through the application of psychological tests.

    Psychometrics is a mechanical terminology of the science used in psychological testing. This is a method that compares a worker with colleagues at the workplace and how much perfection that worker possesses in particular work in comparison to his peers.

    This method also recognizes individual distinctness, i.e., individual peculiarities, fundamental behaviours, and probable future actions.

    Management Games

    Business or management games are factual business conditions that are exhibited in the form of imitations.

    In business games, two or more hypothetical establishments compete against each other in a supposed product market.

    The participants play the assumed role of the Chairman, General Manager, Managing Director, Marketing Manager, etc. Decisions influencing the price rise, volume of production, and stockpiles are taken by each competitor.

    Their outcomes and findings are manipulated by the computer systems, and a comparison is made between the outcomes of the competitors and the outcomes of the factual business conditions.

    The competitors can evaluate their performance level and can notice the influence of their actions on the other competitors and vice versa.

    These management games are helpful and contribute to the appraisal of the performance of the employee.

    Leadership Exercises

    In an organization, the leader is the supreme head and leads from the front.

    The leader is fully proficient in recognizing the qualities of himself as well as his staff. He is also skilled in utilizing those qualities for the benefit of the organization.

    The leader is aware of the perfect time to head the organization and implement the decisions for its betterment and is also fully aware of the appropriate time to hand over the control of the authority to a competent administrator.

    These capabilities are developed through various leadership exercises.

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