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1 INTRODUCTION
The rising position in organization and increasing importance of its functions was a developing process during last hundred years. Management has become an inevitable part of every organization as a science, a process and also a profession. It is a target-oriented process of managing people, systems and sources. It is a process of planning, organizing, leading and controlling, which’s objective is the use of people, material and financial sources effectively.
Many approaches to management were defined. Those are complex concepts trying to include all parts of organization’s life and culture. One of the main components of management is human resource management dealing with personnel part of the system. It’s role is to design the best workforce possible and assure it’s full motivation and positive attitude to their work, with personal conviction of the organization’s goals.
Performance managing system is the key to managing business performance in today’s complex and rapidly changing environment. Most organizations have an urgent need to proactively manage business performance. And while most organizations can measure performance, the challenge is to manage it. Performance management includes several components consolidating all parts of management process. One of these parts is motivation. Motivation is the essential element in managing people. To make work an engine there is usually a start button, but people don’t have buttons like this. In this case you have to look for something more complex and sophisticated. People are motivated and so consequently disposed to work by incentives which differs from one human being to another ...