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This thesis explores the application of the Balanced Scorecard (BSC) as a means employee appraisal in Chinese state-owned enterprises (SOEs). In the earlier documents, it was found that BSCs were not successful. This thesis examines the reasons why the BSC has not worked as a method of appraising individual employees. Operational, capability and cultural systems are the three perspectives used to study the performance of the employee BSC. In addition, this thesis attempts to restructure a new appropriate employee appraisal method to fit employees that work in Chinese SOEs. A leading Chinese communication company (ALCC) was selected as a suitable case study for this programme. This thesis is based on semi-structured interviews, focus group interviews and observation methods that look at five branches of ALCC, which are situated in Xinjiang, Guangdong, Fujian, Sichuan and Zhejiang provinces. The thesis shows that the BSC as a means of employee appraisal is not constructive for employees in Chinese SOEs. The thesis also looks at creating a new employee appraisal model that is more aligned with employee cultural values. This thesis provides a significant guide for managing Chinese SOEs in the future. Further studies propose aligning employee aspirations and the managemnet of employee engagement with the management of talent that can effectively support individual high performance. Future studies will look at how individual employee BSCs can be integrated with organisation and department BSCs. The relationships between individuals and organisations should be investigated with regards to how family life also influences performance.