Abstract
Potential appraisal is an important part of the appraisal process. Appraising an employee's potential helps to evaluate his/her capability for growth and development to take greater challenges, take up responsibilities and positions in the organizational hierarchy. Most organizations incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning. The present study thus focuses on the perception of potential appraisal among the managerial cadre employees. Most of the respondents feel that the PAS (Performance Appraisal System) must help in maintaining and improving the morale of teams and should help the employees in the identification of organizational objectives. The employees have said that the PAS must help in manpower planning to meet the expansion and other needs, if required. Most of the employees feel that PAS must support good maintenance of data that, in turn, should help the HR managers to identify the training needs and to chart the career development plans for an employee. It has been concluded that the managerial cadre employees perceived view of the Potential Performance Appraisal Metric does not differ from one level of manager to the other.
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