Abstract

The term potential refers to the abilities and skills possessed by an employee. It is different from the performance appraisal, which shows the employees' current performance in his existing role. The purpose of potential appraisal is to develop the latent abilities of individuals. It provides the all-important information regarding individuals that could be beneficial for them in framing career opportunities. It ensures a good match between the potential of employees and their jobs. Nowadays, organizations are diversifying their operations, which demands knowledge on the part of employees working in an organization. To meet these needs, organization may require employees, which are competent enough to beat the competition of today's dynamic world. Therefore, they have to make a potential appraisal of the present employees so that they can undertake a variety of tasks (Rao-2005). This study was conducted in Malabar Cements, a leading public sector in Kerala, to identify the metrics that were made use of in conducting the potential appraisal for the managerial and the non-managerial cadre. To collect the primary data, a well-structured questionnaire was distributed, using Likert's Scale. Malabar Cements with its proven capabilities as a performer is driven by systems and procedures. The HR system practices performance appraisal to ensure sustainability of performing resources. Potential appraisal system is envisaged to improve the existing system and to overcome its limitations.

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