Organizations in our transforming and globalizing world as a result of technological developments are in need of high performing employees to survive and to be successful in the increasingly competitive conditions. However, high performance can only be obtained from motivated employees. For this reason, for the motivation of individuals, their performance should be evaluated and used in organizational practices. An individual whose organizational position changed according to her/his performance would become more motivated. However, performance standards should be clear, measurable and accurate, and performance evaluation methods should be used effectively. The performance evaluation method should be reliable and satisfying and in addition to that, it is of great significance that the resultsobtained are used justly and fairly. An individual, who thinks that his /her performance is misevaluated and that he/she is unfairly treated, will poorly perform their tasks. On the other hand, a low-performing individual, who has not been subject to organizational sanctions and measures, will not pay any effort to increase his/her motivation. Ultimately, both of them will have low performance level. Those who have to develop themselves as indicated by the performance evaluation should be given facility and opportunity to do so. Organizations that do not exercise performance evaluation, or organizations that do not benefit from the evaluations in the organizational practice and decision-making in a fair and just manner, cannot increase the motivation of their employees; benefit their knowledge, experience and capabilities and achieve organizational effectiveness and efficiency.