Nowadays, businesses that aimed to gain competitive advantage, have to use human resources which is the most important input in the most efficent way. Performance evaluation system that explaines how efficiently and effectively human resources is used, and motivation that effects performance is vital for businesses. For these reasons, this research aims to clarify the effect of performance evaluation system to motivation in hospitals where human resoruces is perhaps the most important factor. The sample of the research consists of 462 employees from a university, government and private hospital serving in Çankaya Region of Ankara. Two scales are used that measure performance evaluation system and motivation as data collection tool. The research is completed by analyzing and interpreting the obtained data. Data obtained within the study is evaluated and interpreted by using frequency, percentage distributions, exploratory factor analysis, and Kolmogorov Smirnov, Mann Whitney-U and Kruskal Wallis tests. As a result of the analysis on the performance appraisal system and motivation, it is seen that there is a difference between the age groups, title, working department and managerial positions of the employees and the performance appraisal system and motivation views. Similarly, a statistically significant difference between private, public and university hospitals in terms of both performance and motivation is concluded. Finally, it is determined that there is a positive and linear relationship between performance appraisal and motivation.
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