THE OBLIGATIONS OF PUBLIC INSTITUTIONS ON PERFORMANCE AUDITING AND ASSESSMENT IN TURKEY

Performance management which contributes to the determination of public and private sector organizations' goals in regard to the future and its prioritization, to integrate the organization’s targets with employees’ targets, to achieve of job satisfication within organization, to help employees to realize their current potential, to improvement of human resource development and organizational productivity has undergone a significant change and transformation by losing its meaning in the framework of classical management principles. Basic performance evaluation criterias of classical management approach, such as benefit-cost analysis, profit and productivity have lost their validity and performance evaluation and auditing practices based on participation, flexibility, risk-taking, innovation, quality, customer satisfaction have started to gain importance. Performance auditing, which means the evaluation of the effectiveness, efficiency, economy and productivity of the planning, implementation and control stages of activities and transactions carried out in all stages of the management of organization, with the law on Public Financal Management and Control No. 5018 brought important regulations on performance by putting an end to the debates on financal control of institutions. The law has led to a new dimension of performance auditing and assessment in Turkey since the law gave public institutions to do performance analysis.The study will primarily focus on the concept of ‘performance’ and then deal the purposes of performance in public and private organizations. In addition, performance auditing and performance assessment which are the important factors of performance management system will be discussed. Subsequently, evaluations will be made for the implementation of Public Financal Management and Control No. 5018 which brings important changes in performance implementations of public institution