Performance and Potential Management

1
: Differentiation between performance and potential :
When we speak about performance and potential we are referring to two different
aspects, performance relates to the fact of the actual work done / goal achieved. When
one speaks of performance it refers to the performance of the person, which is compared
to the goals / objectives set over a period of time. The growth and success of the compan
is measured b its performance, the more the efforts the better the performance,
performance ma be measured in various was, individual performance, team
performance, performance of the compan on the whole, etc
!n the other hand when we speak of potential we refer to "uman Potential, human
potential appraisal is a ver difficult e#ercise. Potential $ the highest level of work a
person could ultimatel be e#pected to handle comfortabl and successfull with our an
stress. This means work should alwas be a pleasure, ou must be smiling and cheerful.
%n potential one must place special emphasis on talent and ambition. &t times it has been
observed that a person ma be knowledgeable but ma not be able to convert this
knowledge into performance, therefore potential appraisal plas an important role, the
e#isting performance of an emploee must be appraised and one must find out where he
can fit in and be groomed to shoulder future organi'ational responsibilities. When one is
anal'ing potential of a person one must keep track of the following three factors (
1) effective leadership *) achieving e#cellence and c) making decisions..
Performance is the product of man factors, potential mainl is concerned with three
factors ( +apture, ,evelop and -everage. !ne must analsis the strength of the e#isting
emploees and make optimum use of them, when the don.t possess the skills the must
be developed and necessar e#posure must be given to them thorough training, the must
be encouraged. The management must allow the emploees to leverage e#isting resources
to gain a competitive edge / advantage. To be successful there must be close co/
ordination between human resource planning and other performance factors.
Renuka Kuchipudi Registration No: 20032740