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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