Dear tashu,
This is a sensitive area and best treated in a careful and scientific manner.Unfortunately, subjective and perception oriented approaches seem to be the route followed by a lot of organizations. And when they do not yield the expected result it is the objective which is put at fault and not the process.
The best approach would be to do a complete OD analysis and then do a gap assessment.The methodology used should be based on using assessment instruments as a major diagnostic tool.
I am aware of organizations who have used this approach with great success and have moved away from the earlier perception based approach.There are organizations and consultants specializing in this and it would be best for you to seek some assistance in this regard. Kaushik
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There is a basic difference between Performance appraisal and Potential appraisal
Performance Appraisal is retrospective in nature, it analyses the past performance vis a vis the targets set. It basically earns mullah for the employee.
Whereby Potential appraisal is looking forward, it helps in career charting / succession planning for the employee. Employee is appraised on leadership dimensions viz. intellectual orientation, courage, Integrity, judgment, flexibility, dependability, strategies awareness, innovation, entrepreneurship etc. the dimensions depends on the profile /future one plans for that employee.
Performance appraisal & Potential appraisal together in the real sense defines the promotability of the employee.
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