The institutions of higher education are carrying out an engagement system for their all members, which is adapted to the need of our socialist market-oriented economic system and promotes reforms on the personnel system of higher education.

The efficiency of employment system in Chinese universities has to be verified by positivism method,and analyzed by institutional economics.

To effectively promote the employment system, this paper compares the new employment system with the old one, and also the interior environment with the exterior one, in order to get a deeper understanding of the employment system.

This paper advances some paths for the rational development and effective utilization of the human resource, which include carrying out the employment system to optimize the cadre resource, establishing and perfecting the human resource management system and cadre training system in university library, and stabilizing the managerial ranks of university library.

It was discussed in this paper that the good and bad features on the system of appointment involved all staffs in the colleges and universities of China.

The system of appointment refers to stipulating the rights, obligation and responsibility of both parties clearly in accordance with equal principles of both parties by way of contract.

Thoughts on deepening the reform of personnel employment system in university;

Based on the review of the history and status quo of China s faculty employment system,the paper expatiates on the principles by which short-term contract and long-term contract are offered in the process of the implementation of the faculty employment system.

The enforcement of the system of appointment in universities greatly impacted the balance of psychological contract between university organizations and teachers.