The purpose and goal of this paper is to define the methods of establishing a successful employee performance monitoring system. The paper examines the role of managers in the process of evaluating employees, methods of monitoring employee performance, methods of motivating and rewarding employees, material and non-material reward strategies, and techniques and methods for solving organizational conflicts. Employee performance monitoring is a prerequisite for the development of performance monitoring systems and methods and the systematic evaluation of the performance of each individual or team. During the research, secondary methods and data such as books, textbooks and internet sources were used. The techniques, tools and methods explored in this paper can be used by anyone who has subordinate employees at their workplace. Monitoring employee performance is the most important function of human resources management, and it is increasingly considered important in the context of general management. Since the modern business environment is dynamic and unpredictable, and people's needs, as well as motivation factors, are changing, it is not enough to use only the existing human resources management methods that are listed in this paper. Each business entity is separate and as such requires a special approach when setting work performance criteria as well as employee reward systems.