At an age where total quality is of primary importance, efficiency can only be achieved by the successful utilization of human resources. Because, information that has given its name to this period is the product of human beings.
There is a consensus in the HRM field that, in order to stay competitive and reach business goals, high level managers must incorporate Human Resource Management strategies into their overall planning. A company’s competitive success depends on having well informed and capable HR managers at the highest levels of decision making processes.
Human capital theory aims using HRM to increase the value of the organization's human capital and the value of the anticipated returns, such as productivity gains in the context literature where transaction cost theory has the perspective of economics. While the organizations are developing day by day agency theory appears to be particularly useful for understanding executive and managerial compensation practices and to predict occupation-based differences in job pricing methods.
Human resources with developed talents and creativity who are able to reach and utilize information constitute the main power of competition in the world market. Those companies and institutions that make investments on human resources and attempt to create working conditions that are compatible with their requirements and wishes, are the ones who reach success. The employees are the biggest support that institutions need during renovation periods. Institutions that were able to please their employees in the past and were able to implement loyalty and trust, can endure difficulties more easily. The merit given to humans not only increases personal productivity but it also uplifts the quality of the company and the team. The main purpose of human resources management is the employment of human resources in the most efficient and productive way. Nowadays; the success of institutions is evaluated by their communication. Communication is the power of competition in production and service. Sharing information with the all the employees and managers, production of information, its distribution and reflection to daily life and service constitute the main structure of communication inside the institution.
Human resource management is one of the necessary needs of today’s business. Human resource management department has a very important role for supply of the human being to main resources of companies. Human resource management department has fundamental role for personnel recruiting, orientation and performance appraisal and so on. The performance evaluation within this process, it’s not only for evaluate of employees performance therewithal it’s important to get strengthening of the bond between employee and employer. Performance evaluation is one of the important matters for companies getting successful. If the companies can use to performance evaluation correctly, it’s bring to successful performance management and then bring success of the company. The aim of this study to give some information about human resource management and underline important of human resource department is then make prelude to performance evaluation and give some information about performance appraisal process.