Performance Appraisal should always be conducted independent of : -

-salary review
-potential assessment.

Because Performance Appraisal means apprasing of an individual performance :-

-under a given period [ say last 12 months]

-against a set of criteria / standards set for an assumed conditions

-supports provided are part of an action plan

-performance takes place under certain budget criteria

-performed under a particular leadership

-performance affected by numerous external/ internal factors during the said period etc.

Whereas the potential assessments look at the person's qualities/capabilities over future conditions.

So the two elements are totally different assessments.

Any further views ?

Regards

Aparna