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Potential Appraisal

Potential appraisal and Successiion planning in companies

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Potential Appraisal

  1. 1. POTENTIAL APPRAISAL <br />AND <br />SUCCESSION PLANNING<br />
  2. 2. The main question <br />Whether or not the employees have the ability to handle positions in the future which involve considerably more responsibility than what they have right now?<br />
  3. 3. Potential Appraisal<br />Definition: A process of determining an employee’s strengths and weaknesses with a view to use this as a predictor of his future performance. <br />
  4. 4. Process of tracking unrevealed skills and abilities in a person which even he/she is unaware of.<br />Future oriented appraisal which aims to track the potential of the employees to rise up in the organisational structure.<br />Unlike performance review, it does not happen at a particular period in every organization.<br />Generally exercised when employee <br />Achieves a milestone<br />Completes certain duration in organisation<br />Plans to change jobs<br />Characteristics<br />
  5. 5. Benefits<br />Recommending a growth plan <br />Showing a bigger picture to the employees.<br />Infusing enthusiasm in the employees to sharpen the abilities.<br />Learning about the training requirements of the employees. <br />Drawing a succession plan for future.<br />
  6. 6. Succession Planning<br />Definition: A plan that is made to anticipate and prepare for, changes that will or can occur both expectedly and unexpectedly, among the organisation`s key employees. <br />
  7. 7. Need for Succession Planning<br /><ul><li>Key staff will need to be replaced
  8. 8. Work outputs and corporate objectives must continue to be met despite resignations, illness, vacations and restructuring.
  9. 9. To meet staff’s desire for new and challenging roles.
  10. 10. To fill the skill and knowledge shortages</li></li></ul><li>Strategies<br /><ul><li>Natural Selection : Filling positions from those internal employees that are fittest or best or hiring from outside the organisation if not enough people found within.
  11. 11. Acceleration pool : Investing in nurturing the skills of high potential staff through coaching, training, leadership positions and important work assignments.</li></li></ul><li>Benefits<br /><ul><li>Enabling seamless transition
  12. 12. Back up staff
  13. 13. Having skills and knowledge for emergency situations as well as future needs
  14. 14. Enhanced staff motivation
  15. 15. Reduced cost and time for training for replacement</li></li></ul><li>Disadvantages<br /><ul><li>Difficulty in selecting the right people and determining their developmental needs
  16. 16. Potential for grooming for positions that may not be there in the future
  17. 17. Difficulties in maintaining the motivation levels
  18. 18. Possibility of poaching by other organisations
  19. 19. Inherent cost of training and mentoring</li></li></ul><li>Best Practices<br /><ul><li>Clarity of purpose and desired results of the program, and desired performance measures.
  20. 20. Effective follow up and review of the progress
  21. 21. Documentation of competencies
  22. 22. Rewards for both the mentor and the mentee
  23. 23. Evaluate results – through availability of staff with key skills
  24. 24. CEO and leadership involvement in the process</li>

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Potential appraisal and Successiion planning in companies

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