<h1>Before diving into a career in Human Resources, there’s one crucial area you should understand: <strong>performance management</strong>.</h1><h2>While many associate HR with hiring or payroll, modern HR teams play a strategic role in shaping employee development, engagement, and business outcomes. And at the core of that is a well-structured <strong>appraisal system</strong>.</h2><p>If you're a jobseeker interested in joining HR, here’s what you need to know about performance management and why it matters more than you might think.</p><hr><h2>What is Performance Management in HR?<img src="https://assets.hiredly.com/cms/image_2025_04_10_134915013_666c510f4b.png"></h2><p><a href="https://my.hiredly.com/advice/strategic-human-resource-management-malaysia?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Performance management</a> is the continuous process of setting goals, giving feedback, evaluating outcomes, and supporting employee development.</p><p>A good performance <a href="https://my.hiredly.com/advice/hr-professional-day-in-the-life-malaysia?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">management </a>system helps:</p><ul><li>Align employees with company objectives</li><li>Motivate individuals through goal setting and recognition</li><li>Identify training and development needs</li><li>Inform promotion, increment, and succession planning decisions</li></ul><p>📌 Related read: <a href="https://my.hiredly.com/advice/dealing-with-performance-reviews?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Dealing With Performance Reviews</a></p><hr><h2>What Are HR Appraisal Systems?<img src="https://assets.hiredly.com/cms/image_2025_04_10_134930874_746e51d392.png"></h2><p>Appraisal systems are tools or frameworks used to <strong>formally evaluate employee performance</strong>—often on a quarterly or annual basis.</p><p>They typically include:</p><ul><li>Key Performance Indicators (KPIs) or Objectives &amp; Key Results (OKRs)</li><li>Manager evaluations and peer reviews</li><li>Employee self-assessments</li><li>Ratings or scoring systems</li><li>Feedback sessions or performance dialogues</li></ul><p>Appraisals are often tied to decisions like bonuses, promotions, and training plans. For<a href="https://my.hiredly.com/advice/future-of-hr-ai-automation-malaysia?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer"> HR professionals</a>, designing and managing fair and transparent systems is a critical responsibility.</p><hr><h2>Why It Matters If You’re Joining HR</h2><p>As an HR professional, you’ll often be the <strong>bridge between management and employees</strong>. You’ll need to ensure the performance management process is clear, fair, and constructive.</p><p>Here’s what you’ll likely be involved in:</p><ul><li>Designing or updating appraisal frameworks</li><li>Training managers on how to give meaningful feedback</li><li><a href="https://my.hiredly.com/advice/10-company-culture-questions?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Supporting employees</a> with performance improvement plans</li><li>Analysing performance trends for workforce planning</li><li>Linking performance outcomes to rewards and promotions</li></ul><p>📌 Explore: <a href="https://my.hiredly.com/advice/strategic-human-resource-management-malaysia?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Strategic Human Resource Management: Why It Matters for Future HR Leaders</a></p><hr><h2>Common Challenges You’ll Face in This Area</h2><p>Understanding the potential issues can help you prepare and become a better HR strategist.</p><h3>1. <strong>Bias in Ratings</strong></h3><p>Managers may unintentionally rate employees based on personal preference, recency of events, or assumptions.</p><h3>2. <strong>Lack of Feedback</strong></h3><p>Employees often complain they only receive feedback once a year—which makes improvement harder.</p><h3>3. <strong>One-Size-Fits-All Systems</strong></h3><p>Rigid frameworks don’t always fit different departments, roles, or working styles.</p><p>That’s why HR professionals are expected to continuously evolve systems to be more personalised, data-driven, and growth-focused.</p><p>📌 Related: <a href="https://my.hiredly.com/advice/how-to-combat-workplace-complacency?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">How to Combat Workplace Complacency</a></p><hr><h2>How to Build Your Expertise (Even Before Landing the Job)<img src="https://assets.hiredly.com/cms/image_2025_04_10_134944899_8f6481d2f2.png"></h2><p>Even if you’re new to HR, you can start learning about performance management by:</p><ul><li><strong>Taking free online courses</strong> on platforms like Coursera, edX, or FutureLearn</li><li><strong>Reading company reviews and job descriptions</strong> to understand how different organisations handle appraisals</li><li><strong>Asking about performance management systems</strong> in interviews to show your interest in HR strategy</li><li><strong>Exploring internal HR projects</strong> if you're already working in another department</li></ul><p>📌 Related: <a href="https://my.hiredly.com/advice/must-have-hr-certifications-malaysia?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Must-Have HR Certifications in Malaysia</a></p><hr><h3>Performance management is one of the most impactful areas of HR—it shapes how employees grow, how leaders make decisions, and how businesses thrive. If you’re planning to enter the HR field, understanding how appraisal systems work will help you contribute meaningfully from day one. Looking to build your HR career? Explore opportunities on <a href="https://my.hiredly.com/jobs?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Hiredly</a>, take the <a href="https://hiredly.typeform.com/to/K4idZTDK?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer">Work Personality Test</a> to learn your strengths, and join our <a href="https://hub.hiredly.com/young-leaders-community?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=performance_management_&amp;_hr_appraisal_systems:_what_jobseekers_should_know_before_joining_hr&amp;utm_content=freelancing_malaysia,_job_seeker,_job_opportunities" target="_blank" rel="noopener noreferrer"><strong>Young Talent Community</strong></a> to connect with other future HR leaders in Malaysia.</h3>

Thinking of a career in HR? Learn how performance management and appraisal systems work in Malaysia and why they’re essential to HR careers.