The Chinese cultural factor “guanxi” has been found to be one of the most important cultural factors which influences performance appraisal in Chinese organizations. Nonetheless, no study has clearly analysed how guanxi influences performance appraisal in Chinese companies, leaving a significant research gap in our understanding of the impact of guanxi on appraisal and its outcomes. Therefore, this book conducted in-depth case studies, consisting of both quantitative (employee survey) and qualitative research (interviews) methodology, on the performance appraisal system in three banks with different ownerships in China, exploring a range of research objectives drawing on performance appraisal theories, justice theories, and guanxi theories. Based on the results of the pilot study, a scale, which includes two factors “guanxi’s impact on outcome” and “guanxi’s impact on communication”, was developed to measure the impact of guanxi on performance appraisal in Chinese organizations. According to the comparative study of the appraisal system in the state-owned bank, foreign bank and city bank, significant differences of employees’ reactions were found among these three banks.