Abstract: Safety and quality are essential issues in the healthcare industry and it is on this basis, that health professionalism is formed. In healthcare, be it from primary care to tertiary care and right up to public health, various performance indicators have been developed to measure and control the efficiency of health services provided [1]. In the last few years, in pace with International practices, Malaysian policy makers and patients have exerted increasing pressure on health organizations to improve quality and efficiency As such, performance management and appraisal have become key tools to measurement on how well healthcare objectives are accomplished. Performance management and appraisal, when executed well, will in no doubt increase quality healthcare and patient safety. Results obtained from it are more about taking action rather than merely creating awareness. It is crucial to understand that performance management and appraisal involves the whole healthcare system and cannot be individualized or departmentalized and it is indeed the key to achieve fundamental long-term quality improvements.