There are two closely associated key points in the institution-reform in China, one is to optimize the structure of human resources to tamp the foundation of public institutions’ sustainable development and the other is to enhance the professional-title reform to strengthen capacity construction of public institutions. In order to achieve these goals, we must insist on the scientific outlook on development and the people-oriented principle, persist in a series of comprehensive measures such as the income distribution system with the combination of post responsibility, working performance and real contribution of employees under the premise of all staff employment contract system as well as just, fair and scientific professional titles review and evaluation mechanism and so on and effectively activate developing propulsion with competition for choosing advanced staff in public institutions so as to give free rein to advantages and potential of human resources and improve the effectiveness of public service in public institutions.