Monday 25 June 2012

Theory of Potential and Performance in an Organization- LEO2

Any organanization that aims at maximising its profit and sustaining in this ever evolving market,has to know its potential and then see their performance.This helps them to gauge their own ability and by looking at this figure they can carve out their own future ambitions.

As discussed in the class we all know that Potential > Performance . Now our main concern is to achieve performance which is exactly equal to the potential of a person.

Now the main question is to how we can make the performance equal to the potential..??

First of all let us equate potential with performance.

Performance = Potential - Inhibitor forces

Or we can say P = p -i ( where P = performance , potential = p and inhibitor forces = i )

We can say that by improving the performance of the employees we can achieve the desired result.For this to happen we have to provide the employees with some incentives which would act as external motivation


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