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delineation of performance potential analysis                     159
                        has consequences for the scope of abilities and skills that can be included, but also for
                        the methods. Two different approaches are reasonable for potential analysis according
                        to the first position. One is the measurement of talents or predispositions of a person.
                        This diagnosis can be performed by tests that are content-related to the skill or ability
                        for which the potential should be estimated. For example, the potential of a person who
                        does not speak French to speak French in future, could be measured by a test of grammar
                        understanding and a test that measures the capability to reproduce information from
                        memory, etc. Alternatively, the potential could be estimated (by means of correlations)
                        from a set of predictors that do not necessarily have any content-relation to the skill or
                        ability in question, e.g., the time someone spent outside the mother country, the number
                        of siblings, etc.
                          The second theoretical position includes the first one and broadens it to existing skills
                        and abilities. That means, potential analysis according to this viewpoint includes the
                        possibilities of the aforementioned position in the case of non-existing skills and abilities.
                        In the case of potential analysis of existing skills and abilities, of course, the identical
                        measures can be used as for non-existing. Additionally, potential can be measured by
                        means of interpersonal comparisons or comparisons against a norm. For example, the
                        potential of a person to speak French in future who presently is on a certain level (fluency,
                        vocabulary) after having studied French in school for five years can be determined in
                        comparison to other persons who have studied French in school for five years as well.
                        If the history of skill or ability development is not known exactly and there are no
                        comparison groups or norms available (which is the rule rather than the exception), it
                        is possible to estimate the potential by a time-spaced sequence of tests that allow the
                        direct observation of the skill or ability in question (e.g., role plays). It is obvious that
                        this approach to potential analysis offers more possibilities of measurement and refers
                        to a wider scope of skills and abilities that might be captured.
                          Another nicety that should be mentioned is the group of individuals which participate
                        in such a potential analysis. Some authors see potential analysis as restricted to current
                        employees of the organization (Becker, 1992; Lattmann, 1994) while others refer to
                        the prediction of future performance in general and thereby imply personnel selection
                        procedures (Birkhan, 1996; Schuler, 1996; Schuler & Prochaska, 1992). Becker deals
                        with this detail of the definition explicitly. He points out that potential analysis refers to
                        current employees and should be distinguished from personnel selection measures
                        as the data basis is different. The prediction of future performance for employees is
                        based on first-hand knowledge of the individual’s daily work performance and is there-
                        fore more sound than in personnel selection. However, it might be useful to avoid such
                        strict distinctions as the following example illustrates: The performance of a job app-
                        licant having worked for a business partner of the organization in question is well known,
                        whereas the performance of an employee who only recently has joined the organization
                        may better be predicted from application documents or tests. Although it does not seem
                        helpful to restrict the definition, still, when talking of potential analysis the majority
                        of authors implicitly refer to current members of the organization rather than to job
                        applicants.
                          On the basis of the aforementioned arguments we think that none of the existing
                        definitions is sufficiently comprehensive. Therefore we have compiled a definition which
                        wethinkprovidesabasisforaconsciousandconsiderateapplicationofpotentialanalysis.
                        We understand potential analysis to be an estimation of the degree to which performance-
                        related skills and abilities that already exist, or do not yet exist, will develop or could be
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