Potential Appraisal is the procedure or process of identifying the employeeдЫЄs strengths/skills that can be used by the company to optimize the capability of its human resource that has not been utilized yet. Through Potential Appraisal, employee qualities that are inherent in an individual like leadership, communication skills, etch are identified so that it can be used to contribute to the organizationдЫЄs bottom line. Whereas Performance Appraisal is the procedure or method used in evaluating the performance of a certain employee for a given period of what the employee has done or how productive he or she is. It is also the process of obtaining relevant information about an employee and determining its worth to the organization by analyzing the given information. The analysis of an