ir own decisions in such aspects as establishment of a new institution, the appointment of an officer and the setting of wage standards and the transfers of employees.ii)The traditional personnel management is basically a kind of passive management and the functions are limited. The most common activities include the recruitment of staff, delivery of payment or pension and things like that.iii)The traditional Personnel management is often inadequately tied to overall corporate planning. The current HR matters, like training the employees to master some certain technique and resolving disputes concerning labor relations, are often the focus.iv)Lack of fund and professionals to carry out the necessary HR programs. In a SOE, it is nothing unusual to find that the people appointed to interview the applicants are often a secretary or a manager of a certain department. They don't have the needed professional techniques.v)Improper attitude towards Personnel management. Far too many managers view Personnel management as something to do only after everything else has been done.It is time to orient the traditional Personnel management of SOE's to the track of integral strategic HRD. IV) Exam the Traditional Personnel Management and Propose New Ideas.. How to realize the transformation from traditional Personnel management to the modern HRM in SOE's? I will propose my ideas the following ways while examining the traditional Personnel management: (1) selection, (2) performance appraisal, (3) training and development, (4) motivation, and (5) compensation and benefits.SelectionSelection in the SOE's was a passive process. Some workers get their jobs by nepotism and bribery. Similarly, not all the managers or department directors were chosen for their education or technique expertise, but for their membership in the Communist Party and their long years of working in the companies. All this lead to the underdevelopment of selection systems in HRM.Des...