Public institutions constitute a vital component of China’s public service system, playing a significant functional role in the nation’s social development and construction. Human resource (HR) management is a vital component of internal administration within these institutions. The integration of performance appraisal is crucial for enhancing the effectiveness of HR management and facilitating the smooth operation of all institutional functions. Based on this premise, this article first briefly outlines the value of applying performance appraisal in the HR management of public institutions. It then explores strategies for implementing performance appraisal within this context, aiming to provide insights for promoting the sustained and healthy development of public institutions.