Performance Management & HR Appraisal Systems: What Jobseekers Should Know Before Joining HR

Performance management isn’t just about annual reviews—it’s a critical function that drives employee growth, engagement, and company success. If you’re exploring a career in Human Resources in Malaysia, understanding how appraisal systems work is key to becoming a strategic and trusted HR professional.

By Matt Khoo on 2025-04-10 at 5:41 AM

Updated on 2025-04-10 at 5:49 AM

Before diving into a career in Human Resources, there’s one crucial area you should understand: performance management.

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 appraisal system.

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.

What is Performance Management in HR?

Performance management is the continuous process of setting goals, giving feedback, evaluating outcomes, and supporting employee development.

A good performance management system helps:

  • Align employees with company objectives
  • Motivate individuals through goal setting and recognition
  • Identify training and development needs
  • Inform promotion, increment, and succession planning decisions

📌 Related read: Dealing With Performance Reviews

What Are HR Appraisal Systems?

Appraisal systems are tools or frameworks used to formally evaluate employee performance—often on a quarterly or annual basis.

They typically include:

  • Key Performance Indicators (KPIs) or Objectives & Key Results (OKRs)
  • Manager evaluations and peer reviews
  • Employee self-assessments
  • Ratings or scoring systems
  • Feedback sessions or performance dialogues

Appraisals are often tied to decisions like bonuses, promotions, and training plans. For HR professionals, designing and managing fair and transparent systems is a critical responsibility.

Why It Matters If You’re Joining HR

As an HR professional, you’ll often be the bridge between management and employees. You’ll need to ensure the performance management process is clear, fair, and constructive.

Here’s what you’ll likely be involved in:

  • Designing or updating appraisal frameworks
  • Training managers on how to give meaningful feedback
  • Supporting employees with performance improvement plans
  • Analysing performance trends for workforce planning
  • Linking performance outcomes to rewards and promotions

📌 Explore: Strategic Human Resource Management: Why It Matters for Future HR Leaders

Common Challenges You’ll Face in This Area

Understanding the potential issues can help you prepare and become a better HR strategist.

1. Bias in Ratings

Managers may unintentionally rate employees based on personal preference, recency of events, or assumptions.

2. Lack of Feedback

Employees often complain they only receive feedback once a year—which makes improvement harder.

3. One-Size-Fits-All Systems

Rigid frameworks don’t always fit different departments, roles, or working styles.

That’s why HR professionals are expected to continuously evolve systems to be more personalised, data-driven, and growth-focused.

📌 Related: How to Combat Workplace Complacency

How to Build Your Expertise (Even Before Landing the Job)

Even if you’re new to HR, you can start learning about performance management by:

  • Taking free online courses on platforms like Coursera, edX, or FutureLearn
  • Reading company reviews and job descriptions to understand how different organisations handle appraisals
  • Asking about performance management systems in interviews to show your interest in HR strategy
  • Exploring internal HR projects if you're already working in another department

📌 Related: Must-Have HR Certifications in Malaysia

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 Hiredly, take the Work Personality Test to learn your strengths, and join our Young Talent Community to connect with other future HR leaders in Malaysia.

By Matt Khoo on 2025-04-10 at 5:41 AM