It is said that Chinese management is more relationship or people-oriented as opposed to performance-oriented (Lockett, 1988). Seniority and good conduct of behaviour such as reliability and trustworthiness, instead of good performance, play a more important role in promotion (Sheh, 1993). Hence, seniority in promotion and internal promotion are commonly practised in the Chinese enterprise. However, in larger Chinese enterprises, the use of objective performance criteria and the installation of a comprehensive performance appraisal system are commonly observed.