The process of potential appraisal helps single out individuals with promising abilities to work in higher positions. The abilities of an employee, be it his analytical power or resourcefulness or vision, constitute his potential which is uncovered through the process of potential appraisal. A sound potential appraisal system requires clarity of roles and functions related to different jobs in an organization. It also requires extensive job descriptions and their various functions and a detailed list of qualities required to perform these functions. These qualities include, among other things, technical knowledge and conceptual, behavioral, and managerial capabilities. A transparent and unbiased appraisal system can help employees understand their strengths and weaknesses.