Motivational effect of performance management in businesses

The global world witnesses constant progress in daily basis in many fields such as technology, science, management, economy and communication. To catch up with the trends and progress as well as to secure their success, businesses need to adapt modern methods. Human resources are the key function of business and lead the businesses to success if it is efficient and effective. Performance management is an ongoing communication process between a supervisor and an employee, covering the entire year, to help the company achieve its strategic goals. Employee motivation is the key in increasing productivity. Different motivation tools to motivate employees are frequently visited by the businesses aware of the contributions of motivated human resources. This article evaluates the motivational effect of the performance management system on human resources along with the motivation concept by starting to define performance in the first part. It is aimed to reveal whether the performance management system applied in the sample company discussed in this study has any effect on motivation, and if so, in which direction this relationship is, as a result of the questionnaire applied to the employees. In this context, a survey study was conducted on people working in an enterprise where a performance management system was applied. Regarding the survey analysis, general evaluations were made about the effect of the performance management systems applied in the enterprises on the motivation. As a result of the analysis made in this study, it was determined that there is a positive relationship between motivation tools and the performance management system. It has been observed that the motivation of the employees in the enterprises where an effective performance management system is applied is higher. However, it was concluded that economic, psychosocial and organizational tools, which are sub-dimensions of motivation, affect employee performance positively.