Page 181 - Psychological Management of Individual Performance

164 analysis of performance potential
finding a person who matches the profile as closely as possible and has the potential and
the motivation to bridge the gap rapidly, either by training or by learning while doing the
job. It is obvious that, in this case, selection procedures do not only comprise measures
to determine the actual performance level but also involve methods to predict the future
achievements of the individual. Even if it is possible to recruit people who exactly fulfill
the job requirements from the beginning of the employment, the organization will seek
to employ people who have the potential to develop or to be developed at least to the
probable necessary extend to cope with the challenges the company will be faced with
in future. The underlying assumption of this procedure is that no job remains the same
over a longer period of time but that certain changes in kind and scope of knowledge and
skills are inherent. In a technologically fast-paced environment the nature of the jobs to
be done changes quickly and it would be rather expensive and not feasible for the orga-
nization to replace the present employee by a new recruit each time the job requirements
change (Campbell, 1999). As a consequence, it is essential to hire people who have a
certain potential to develop.
Thus, it is obvious that, on the one hand, it would be economic in any selection proce-
dure not only to measure the present performance level but also to conduct a sound po-
tential assessment for each candidate. On the other hand, an additional potential analysis
is more costly (see also Schmidt & Hunter, 1998a) because present performance could
well be measured using work sample tests of tasks which are crucial for the efficient
execution of the job in question. In contrast, potential analysis would involve further di-
agnostic methods such as tests or learning potential assessment centers. These diagnostic
measures might allow for the prediction of future behavior in certain content domains but
will not necessarily result in concrete and specific statements concerning the individual’s
suitability for the job in question. Moreover, this additional investment would be wasted
for those applicants who are not selected for the job.

OBJECTIVES OF POTENTIAL ANALYSIS
As was explained in the preceding paragraph, potential analysis is applied in the selec-
tion phases of the recruitment and the development function of the HRM. This section,
however, will show that actions which follow potential analyses primarily serve to per-
form the functions of performance preservation, performance improvement, and control.
Within that framework potential analysis follows various objectives.
First, information gathered in potential analyses is used for organizational decision-
making about promotion (Lowry, 1994; Shore, 1992; Shore et al., 1998). The result of a
potential analysis is a performance profile of the individual which gives a detailed picture
of strengths and weaknesses. This profile can then be compared to the required profiles
of the jobs the organization has to perform in the future. Assuming that no other HR
actions, such as training, should be exerted, the potential analysis results in a list of jobs
or positions the individual might fill in future (Kliem, 1987). On this basis, employees
can be placed according to their capabilities and potential without expecting too much
(or too little) of them and so sustain their capability.
Second, potential analyses are performed in order to enter into a joint process of plan-
ning the employee’s career and to control human capabilities (Miner, 1992). Regardless