Which management strategy focuses on maximizing employee potential?

The strategy that focuses on maximizing employee potential is performance appraisals. This management practice involves evaluating an employee's job performance and productivity in relation to established criteria and organizational objectives. By conducting performance appraisals, organizations can identify the strengths and weaknesses of their employees, set goals for improvement, and provide feedback that is essential for professional development.

These appraisals not only allow for personal growth by discussing areas for development and career advancement opportunities but also help management understand how employee performance aligns with the goals of the business. When employees receive constructive feedback and recognition for their achievements, it fosters an environment that encourages them to maximize their potential.

Other options, while they can contribute in different ways to employee satisfaction and team dynamics, do not specifically focus on the assessment and enhancement of individual employee performance in the structured way that performance appraisals do. Financial forecasting deals with predicting financial outcomes rather than employee development, team building activities enhance group dynamics but don't specifically evaluate individual potential, and marketing promotions focus on promoting products or services rather than maximizing employee capabilities.