Abstract: Purpose: The purpose of the paper is to analyse the impact of motivation on productivity of the employees. The role of HRM in organizations is to develop a positive work environment that supports creativity and innovation for the improved productivity of organizations. The main objective of this report is to create an understanding of the role of human resource manager in applying motivational techniques to improve the productivity and performance of employees. Methodology: The report is based on the qualitative analysis of books and Journal from the year 2009- 2013. The research of the previous author supports in developing effective ideas about a link between motivation and employee productivity. The paper is completed with the authentic and reliable sources that have helped to achieve the framed objectives of the paper. Findings: Study has identified that motivational factors impact the productivity of the employees and the performance of the employee increases with the effect of both intrinsic and extrinsic motivation. The report highlights the importance of motivation in improving employee productivity so that the organizational overall goals are achieved in an effective and efficient manner. The HR manager applies a different style of motivational techniques so that performance is enhanced. Conclusion: The application of financial and non-financial incentives in the appraising employee performance is directly linked to the growth of employee engagement towards their assigned roles and responsibilities. The economic and competitive environment in an economy requires greater support of human resource in managing roles and responsibilities.
