The purpose of the research presented in this dissertation is to explain and describe the process of monitoring the performance of employees in a selected organization, namely Croatia banka d.d. The primary purpose of monitoring employee performance is to gain a better understanding of how each employee works, how well they work and, if necessary, how to improve their performance. The results of the analysis of the process of monitoring and evaluating the performance of employees at Croatia banka d.d. have shown that this process is subject to various errors which should be minimized as much as possible by means of additional training and education of evaluators. The analysis of the results of previous work performance evaluations indicates improvements in the level of evaluation objectivity, as the share of the highest A grade in the total number of grades given has decreased compared to previous years, while the shares of other grades are more evenly distributed. By means of additional education provided over the past two years, progress has been made in regard to the managers’ and employees’ understanding of the evaluation system. This has led to a greater acceptance of the system among the workforce and ultimately contributed to improved system implementation and monitoring of employee performance. Based on an online survey regarding employee satisfaction with the existing evaluation system, it is clear that the employees are divided on the importance of monitoring and evaluating work performance. They are dissatisfied with the objectivity of the evaluation system and are thus not overly satisfied with the reward mechanisms in place. Therefore, it is important to continuously educate the managers in order to evaluate employee work performance as objectively as possible, because if evaluation errors are completely eliminated or at the very least their number reduced, employee satisfaction will increase significantly, and employees will be more motivated to achieve better business results.