The effect of institutionalization on employee performance in businesses

Institutionalization is, participant, far from detail and hierarchy and more Professional approaches is existing according to traditional management. In other words, institutionalization is to set up effective mechanism in the organization structure. Performance is one of the important tools of modern human resource policies. The evaluation of the employees in public and private sector is an important managerial process both for the employee himself and the organization itself. Today performance evaluation systems, which vary according to every organization, are used in every organization that has been instituonalized. This study examines the effect of institutionalization on employee performance in spinning yarn production in the textile sector. Moreover, the formalization, professionalization, cultural power, accountability and consistency which are elements of institutionalization has been brought up for the impact on employee performance. Our study has been believed to contribute to institutionalization and employee performance theory. At the same time, business managers will have the opportunity to better understand the industry environment in which they operate by this study. The collection of data and the result of the analysis; it is acknowledged that institutionalization has an effect on employee performance. The formalization, cultural power, accountability and consistency which are the elements of institutionalization were found to be significant effects on employee performance. However it is accepted that professionalization is no effect on employee performance. Key Words: Businesses, Institution, Institutionalization, Performance, Employee Performance,