Page 180 - Psychological Management of Individual Performance

potential analysis in the context of hrm functions 163
human resources planning refers to three tasks, namely, recruitment (with the phases
personnel marketing, selection, hiring, and initial placement), personnel development
(with the phases selection for new tasks, preservation of individual performance, and im-
provement of individual performance) and controlling of the performance of employees
and the effects of personnel development (see also Miner, 1992). The inter-individual
satisfactory conditions have to be considered for any phase of the planning process.
Except for the creation of motivating conditions there are different means to secure an
appropriate level of performance and to fill the regularly evolving vacancies. One way
is the recruitment from the labor market of individuals who already have the required
qualifications. Another way is to match the incentives and rewards offered by the orga-
nization to the individual’s needs and motives that are linked to the desired performance
level. Third, appropriate placement decisions have to be taken that do not ask too much
or too little of the job incumbent who, in that case, might leave the job. These placement
decisions have to consider that executives themselves regularly strive for new tasks and
challenges—a fact which may result in regular vacancies. Fourth, present employees can
be trained to acquire the anticipated skills and knowledge. Regardless of the combination
of measures that are taken to secure an appropriate performance level, but apart from
performance appraisal systems, all measures require some kind of prediction of future
performance, which can be performed as potential analysis.
A potential analysis which involves the identification of an individual’s strengths and
weaknesses with regard to previously stated job requirements should be, and widely is,
applied in the planning process, especially in both selection phases. As explained ear-
lier in this chapter, potential analysis should include an assessment of the individual’s
personality-caused motivation. However, the HRM does not intend to change an indi-
vidual’s personality (Neuberger, 1980a) just as, for example, it does not try to increase
the intelligence of the individual by systematic measures. Nor does it have the task of
creating a will in the individual to strive for higher positions.
Potential analyses are usually carried out for current employees. It should be men-
tioned, however, that an extensive potential analysis is not performed for the complete
staff but is usually restricted to employees that are known to be high performers and are
expected to hold executive positions in the future. Typically, employees are appointed
for participation in the potential analysis on the basis of excellent former performance
appraisals or nomination by their current supervisor (e.g., Shore, Tetrick, & Shore, 1998).
This practice clearly shows the fact that for the HRM the distinction between potential
(i.e., capability) and motivation to perform on a high level is peripheral. That is the
prevailing idea of potential analyses by means of dynamic assessment centers. As will
be described later, HRM does not strive to measure the actual weights of potential and
motivation but rather to collect the combined data (i.e., actual performance) in order to
predict future performance.
As was mentioned in connection with the definitions of potential analysis, the position
to conduct potential analyses only for current members of the organization falls short of
economically reasonable thinking. Rather, a potential analysis for job candidates could
be just as profitable, as will be shown in this section.
Job analysis methods provide the profile of abilities, skills, and knowledge that are
required from the job incumbent in order to perform effectively. However, it is not always
possible in the recruitment process to identify, with desirable reliability, a person who
already possesses all the necessary qualifications. Then, the selection process aims at