Performance evaluation and wage leaning against performance: An example in an industry corporation

The main purpose of this study is to establish some findings and information concerning the application of performance appraisal and performance based pay in Turkey. For that end, the system of performance management is firstly studied. Performance appraisal and the methods of performance appraisal are analyzed in detail. In the concluding part of the study, in order to establish the application of performance appraisal and performance based pay in Turkey, one of leading Turkish firms in private sector is examined under the field work. In this field work section, it has been analyzed in detail how the concerned firm applied the performance appraisal and performance based pay. As it is known, organizations have to attach due importance to strategic management of human resources in order to adapt itself to the rapid developments and the quickly increasing global competition in the course of globalization. In this respect, the performance appraisal which makes up one of major components of modern human resources management is becoming the practice of which organizations need. It has been observed that the attention to the performance appraisal and performance based pay have been gradually growing in Turkey. It is well known that particularly firms in private sectors show an interest in these practices. It has been established that the firm which has been analyzed as a case study under the field work, apply a performance appraisal system, which is prepared according to up to date developments. On the other hand, it has been understood that the firm prioritize the outcomes of appraisal as main criterion in paying. In the firm, the basic input of pay increase is fivefold scale, which appraises and establish under the performance appraisal work to what extent employees meet "goals" and "competence" set up in the beginning of the working period.