A personnel employment system has been introduced in public institutions. By means of employment contracts, the relationship between employing units and employees is clearly defined. By institutionalizing post setting, open recruitment, competition for positions, performance assessment and subsequent rewards and punishment, as well as resignation and dismissal, it has gradually brought into being a personnel management system for public institutions that has clearly defined rights and responsibilities, scientific classifications, flexible mechanisms and effective supervision. By the end of 2009 some 80 percent of the total staff in public institutions around China had signed employment contracts. In 2009 over 80 percent of all the new employees in public institutions in 22 provinces, autonomous regions and municipalities directly under the central government were recruited through open recruitment. Public institutions have put in place a wage system based on post and performance, as well as a payment and incentive mechanism that closely links payment and bonus to responsibilities, performance and contribution, and encourages innovation and creation. These efforts have brought into full play the enthusiasm and creativity of human resources in these institutions. Personnel system of state-owned enterprises has been improved. In line with the requirements of the modern corporate system, state- owned enterprises have started to form standard boards of directors, providing an institutional guarantee for the sustained, rapid and healthy development of these enterprises. They have established and improved systems concerning the selection and appointment, performance assessment, and incentives and supervision of managerial and administrative personnel. They have put in place a wage system with regulation by the market, distribution independently by enterprises, democratic participation of employees, and supervision and guidance by the government, thus promoting the development of enterprises and enhancing employees' wages. As a result, the basic role of the market in allocating human resources has been brought into full play, and a mechanism of personnel selection and appointment by the market has been established. From 2003 to 2009 the number of managerial and administrative personnel employed by way of open recruitment and competition for positions increased from 334,000 to 521,000. Establishing a national system of honors and rewards The Chinese government adheres to the principle of combining morale boosting with material reward, with focus on the former, and has therefore set up a national system of honors and rewards which is being constantly improved. The state awards workers who have made major contributions to national development with the honorary titles of 'National Model Worker' and 'National Outstanding Worker' -- the former for workers, farmers and managerial personnel of enterprises, and the latter for personnel of government departments and public institutions. Since 1989 the Chinese government has held a national conference once every five years to award such titles to model and outstanding workers from all walks of life. So far 14,578 people have received one of the titles. The state honors citizens and organizations making brilliant contributions to scientific and technological development with the Science and Technology Award. Since 2000, a total of 27,772 people have won this award, and among them 16 prominent scientists won the State Preeminent Science and Technology Award of China. China has two titles for academicians: One is Member of the Chinese Academy of Sciences, the highest title in the field of science and technology, and the other is Member of the Chinese Academy of Engineering, the highest title in the field of engineering and technology. By the end of 2009 there were 1,143 academicians of the Chinese Academy of Sciences and 861 academicians of the Chinese Academy of Engineering, all of whom won the title by way of assessment and selection. Since 1990, China also practices a system of special government allowances. The Chinese government has issued certificates of honor to experts, scholars, technicians and highly-skilled personnel who have made brilliant contributions to their fields. In addition, it gives special government allowances to these people. By 2009, 158,000 people had received such allowances. In addition, the state has put in place a national system for rewarding outstanding professionals. Since 1999 a total of 200 people have won the title of 'National Outstanding Professional.' Since 1995 a total of 120 people have won the state's 'Grand Skill Award of China' and 2,976 have won 'National Technical Expert' award. They are role models of high-skilled workers in China. The government has also established a national system to reward prominent personnel from rural areas, and 160 people have been commended under this system since 2000. (More) 