This conceptual article explores the pressing need of Human Resource Management (HRM) renovation of Higher Vocational Education (HVE) in China, and to propose plausibly and concrete significance for HVE schools in China the impending demand of human capital utilization improvement to ensure the high-quality educational performance and eventually to meet the high-caliber talent requirements of market home and abroad. The study defines and evaluates the core concepts of teacher competency, performance and organizational support, and majorly illustrates that it is the time’s call for the HVE schools in China to face the reality that the HRM system applied in enterprises cannot be duplicated directly and the traditional HRM methods formed shall be well-renovated in order to get a better educational performance. The study utilized a desk review research approach targeting literature from a variety of references such as studies, research journals, books, online resources of reports, articles and electronic databases. A failure to strengthen the function of teacher competency in performance appraisal of HVE schools in China results in the lag development of vocational education, which eventually will influence the social and economic competitiveness of the country. The mechanism in between competency and performance is presented explicitly and a mediator as organizational support is also introduced to make the study be systematic from a different angle. Based on the discussion, it is presented that an urgent need for the HVE schools in China to be aware of the application of appropriate competency-based performance appraisal in response to the challenges of providing solid vocational human capital for the booming market, which is identified as the result of this paper.