Performance management which has great importance in transforming institutional strategies into results is anymore seen as a strategic management tool in public sector nowadays. Therefore, it is gaining more importance to establish an original performance management system that will help public administration organizations reach their visions and strategic targets. Employees are ensured to understand what the targets and priorities are what should be done currently, how the work done contributes to the performance of the institution by a good performance management in public sector. Employees will adopt their jobs and do their best to reach goals when they are aware of what is expected from them and more importantly, when they take place in shaping their targets. The use of citizen centered public management mentality recently; increasing efficiency and performance in public, raising discussions over quality in public, downsizing of central administration and delegation of some of its power to other units make performance management more recent and significant. In this study, contributions of performance management and performance assessment systems which have been started to be used in public sector to efficiency and productivity of public management and effect of those on public employees’ motivations are analyzed in terms of theoretical perspective.