International Journal of Human Resource Management Vol. 16, n. 9, pp. 513-519 ISSN 0065-8094 513 International Journal of Human Resource Management Feasibility of Potential Appraisal for Managerial Employees in Selected PSUS in the State of Kerala Mohammed Sulaiman * Arumugam Dharmaraj 1 Abstract With emerging complexities in business and industry and with the rise of the competitive market people are at the center stage of all sources of energy and power. It is imperative to say that good potential appraisal system is vital for the success of the organisation in the ever-changing competitive business. In today’s context every organisation’s performances appraisal systems have to be framed based on twin perceptive that will fulfill the organisation’s goal and their employees’ expectations. This study aims to assess the employees’ perception towards feasibility of potential appraisal for managerial employees in selected PSUs of Kerala. The study observed that the employee claim doubt related to the feasibility of the future potential appraisal metric systems. The study concluded that though PAS system adopted in public sector organisations are beneficial to the employees’. But, the employees’ feel that the PAS system should be developed further in order to get the optimum results. Thus, study suggests both central and State Public Sector Undertakings to adhered a three dimensional focus while planning future potential appraisal metrics i.e., administrative functions (e.g. promotion and salary), informative functions (e.g. generate performance data for management and employees), and motivational functions (e.g. training, learning, career planning). Keywords: Performance Appraisal, Potential Appraisal, Public Sector Enterprises. Introduction Performance appraisal as a system has been in existence in well-managed organisations for a few decades. The earlier conventional approach to performance appraisal, which required the manager to pass judgment on the subordinate, is outdated. The performance plan was basically designed for administrative purpose, like promotion annual wage increments, transfers, and even demotion of employee from one position to the other. With emerging complexities in business and industry and with the rise of the competitive market people are at the center stage of all sources of energy and power. It is imperative to say that good potential appraisal system is vital for the success of * Assistant Manager –Personnel & Administration, Malabar Cement, Palakkadu, Kerala and Research Scholar, Karpagam university Coimbatore, Tamil Nadu, India. Email: lmdsulaiman@grgsms.com. 1 Arumugam Dharmaraj, Associate Professor, Department of Management Studies & Research, Karpagam University, Coimbatore, Tamil Nadu, India. the organisation in the ever-changing competitive business. In today’s context every organisation’s performances appraisal systems have to be framed based on twin perceptive that will fulfill the organisation’s goal and their employees’ expectations. Organisational development aims for increase in productivity and fulfillment of corporate objectives and employees have aspirations to advance and grow in their organisation, and have a desire to achieve higher and more satisfying performance. Performance management in government owned enterprises is the managerial activity necessary to promote well-performing employee to the next position, as per the organization policies. But, the irony is that the current practice is to appraise the