According to the incentive theory, we must start from the needs of employees, understand the motivation of the process of employees' behavior, and select targeted incentive methods and means, so as to achieve the purpose of effectively motivating employees. In order to further improve Chen Xiao's performance appraisal, managers can enrich the application of appraisal results, appropriately increase the application of appraisal results, so as to motivate employees and improve their performance.