ection process should be adopted by SOE'S in China, which will provide a fair opportunity to all the applicants and to get those who are really capable of the jobs. What's more, this selection process can also help to get rid of nepotism and corruption, which often rooted from bribery for some certain positions or high positions.Performance AppraisalPerformance appraisals were unpopular in SOE's because employees get fixed payment which nothing directly tied to performance. Workers were guaranteed a monthly wage regardless of productivity. And thus tardiness and low working efficiency arises. Today, the method of performance appraisal gains great popularity among foreign companies. Through performance appraisal, they determine and communicate to an employee how he or she is performing on the job and ideally, establish a plan of improvement.Performance appraisal information can be used to identify an individual employee’s strength and weakness. These data can then be used to help determine the organization’s several training and development needs. Another use of performance appraisal information is to encourage performance improvement. When an employee’s performance has deteriorated or is below expectation, corrective action can be made according to the performance appraisal records. An employee may even be fired if no action can change his or her poor performance recorded.What’s more, performance appraisals are used to consider the suitability of a potential when a selection is to be conducted.Besides, performance appraisals are also used as the basic for the delivery of incentives . Incentive is the part of the payment that workers receive according to their performance. So, without performance appraisals, how can incentives be delivered fairly? Without a fair payment, how can employees be satisfied? And how can they be committed to the company they work for?The SOE's in China should design formal performance a...