PERFORMANCE EVALUATION FOR SERVICE ORGANIZATION: FOCUS ON EMPLOYEE PERFORMANCE1.0 INTRODUCTIONIn most service organizations, performance appraisal is important, especially the evaluation of employee performance in the organization. Indeed, employee performance is directly linked to the performance of the entire organization. Normally, the objectives of service organization include service quality, customer requirements, customer satisfaction, etc. According to Heskett et al. (1997), the important elements of service profit organization include service quality and customer satisfaction. This means that employee delivery service with higher levels of service quality would achieve customer satisfaction, indirectly lead to loyal customer base and increase the turnover of the organization. Palmer (2001) argues that in service industries, the quality of customer service is a crucial source of specific skills. It is considered an essential success factor for maintaining a competitive advantage. Therefore, it is important for service employees to provide a higher level of service quality and strategy to service organizations that can position themselves more effectively in the market, as stated by Irene Hau-siu C. and al. (2007). According to Heskett et al. (1997), the success of a business in a service organization must provide excellent service quality, high value and customer satisfaction. Thus, it will increase the loyal customer base. According to Ghanbari Shahraji, M. (2012), most of the organizations focus on their employees because the employees of the organization participate in the competition and their productivity will decide the movement of the organization. ..... middle of paper ......motion.The objectives and goals of Marrybrown Restaurant are to achieve customer satisfaction, make them feel comfortable with the services provided and increase the reputation of the restaurant, etc. Thus, in order to achieve these objectives, employee performance plays an important role in achieving the objectives set by management. Marrybrown Restaurant employee performance appraisal is normally conducted once a year. Marrybrown restaurant also prepares the reward for the best performance of the employee. In order to obtain this reward, most employees work hard and efficiently to improve their performance. So if the performance of the employees is improved then the performance of the Marrybrown restaurant can also be improved and this will then help the Marrybrown restaurant to succeed in the world..