Why Is Performance Delinked From Potential In The PMS Proces

hello...
have a question...i was just studying the Performance Management system of a company wherein they have deceided to delink the performance appraisal from the potential appraisal. any reasons why companies resort to this?
melissa

DELINKING.
In my personal view , it is the correct action.
Performance Appraisal should always be conducted independent
of
-salary review
-potential assessment.
BECUASE PERFORMANCE APPRAISAL means apprasing
of an individual performance
-under a given period [ say last 12 months]
-against a set of criteria / standards set for an assumed
conditions
-supports provided are part of an action plan
-performance takes place under certain budget criteria
-performed under a particular leadership
-performance affected by numerous external/ internal factors
during the said period
etc.
WHERE AS THE POTENTIAL ASSESSMENTS LOOKS AT
THE PERSON'S QUALITIES/CAPABILITIES OVER FUTURE
CONDITIONS.
SO the two elements are totally different assessments.
regards
LEO LINGHAM

Hi all,
I disagree with the statement as when appointing or promoting the person, we take the cost to the company and the potential the employee has into consideration..
If we find that the person has not given atleast 95% of his current potential to the company, then maybe we have overpaid him.. as while deciding the salary we have taken into consideration his current potential..
Further, I believe that most of the companies employ freshers not based on their current potential but their faster learning curve.. If the employee has not been able to learn fast enough, even that should be taken into consideration in the appraisal system... As based on the appraisal of the person, the company not only decides on the compensation factors but also the promotion factors...

True, but doesnt potential of an individual like leadership...etc impact his performance? Wouldnt delinking the two imply that they are unrelated?

Hello All:
Performance appraisal is based upon past results over a specfic timeframe, and is not rated as to future performance in any key result area.
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.