This document discusses potential appraisal and career development in organizations. It defines potential appraisal as identifying an employee's ability to take on higher responsibilities. Potential is appraised based on supervisor observations, performance history, and simulated roles. Career development involves guiding employee movement through positions to retain and motivate workers. It outlines the steps of developing a potential appraisal system, including defining roles and qualities, and providing feedback. Career development aims to fulfill organizational and individual needs through actions like improving performance, networking, and expanding abilities.