Potential Appraisal and Development in Human Resource Development (HRD): A Review

Human Resource Development (HRD) process is denoted as how personnel are recruited, trained and put into use depending upon their skills, knowledge and potential as per the need of the job and keeping in line with organizational objectives. Potential appraisal refers to the identification and evaluation of hidden talents and underlying skills of a person. Potential appraisal enhances human resource development and enables the attainment of organizational goals. Steps in the potential appraisal system include a detailed job description, job specified quality traits, rating mechanisms and organizing the system. Techniques used for carrying out potential appraisal includes selfappraisal technique, peer appraisal technique, superior appraisal technique, management by objectives, psychological and psychometric techniques, leadership exercises, management games etc. Growth of companies lies in the hands of potential employees and hence it is the responsibility of companies to recognize the potential and reward befittingly to retain the talent. Thus it lowers the chance of good employees leaving the organization for green pastures.