In organizations that subscribe to HRD, the potential (career-enhancement possibilities) of every employee is assessed periodically. Such assessment is used for development planning as well as for placement. It is assumed under this system that the company is growing continuously. It may be expanding in scale, diversifying its operations, introducing technological changes, or entering new markets. A dynamic and growing organizations needs to continually review its structure and systems, creating new roles and assigning new responsibilities and Capabilities to perform new roles and responsibilities must continually be developed among employees.
Like in our house, when we are selecting window blinds we need to consider wood blinds, faux wood blinds, mini blinds, and vertical blinds and window shades like roman shades, cellular shades, pleated shades, roller shades, and woven wood bamboo shades. The identification of employee potential to ensure the availability of people to do different jobs helps to motivate employees in additions to serving organizations needs.
Every year or two, the supervisor of a group of employee assesses the potential of each of them to perform different (usually higher level) functions on the basis of the supervisor’s observations and experiences during that period. Of course, many supervisors see their subordinates doing only those jobs to which they are assigned. The ideal way to judge a person’s potential would be to try the person on each job for which his potential is being assessed. This is not feasible in most organizations, so simulations activities are prepared to provide some information about the potential of employees in specific areas.
Any employee can request such assessment. It should be clear whether or not there is a position available in the company to which the employee could be transferred or promoted.