The aim of the dissertation called Motivation as a tool of performance management is to analyze the present condition of the motivation system in the company Ahold and eventually base on recognized imperfections to suggest and help increase employee performance. The dissertation is divided in a theoretical and a practical part. In the theoretical part leader and manager, motivation, sources of motivation, theories of motivation and achievement motivation are defined. Further attention is devoted to direction and evaluation of work performance. The theoretical part is followed by the practical part, which contains company characteristics, analysis of the current motivation system, where empirical research investigates motivation and her impact on satisfaction and performance employee. At the end of the dissertation there are stated and proposed recommended changes, which should contribute to better performance and motivation of the employee.