Abstract: In the course of establishing modern enterprise system in state enterprises, the problem of trusting and acting has become more and more prominent, which is influencing the deepening of economic reform. So the study of the establishment of effective, incentive and restrictive mechanism has become one of the theoretical cores of modern enterprises. This essay analyzes the present situation of the selective, incentive and restrictive mechanism of the executives of state enterprises and proposes some effective ways to solve this problem.

Key words: executive, actrelation, selectivemechanism, incentivemechanism, restrictivemechanism