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Motivation is a set of energetic forces that originate within as well as beyond an individual's being. It is a psychological process resulting from the reciprocal interaction between the individual and the environment that affects a person's choices, effort, and persistence. Thus motivation is a key determinant of performance in virtually all contexts. Further the knowledge of motivation tells that people do what they do to satisfy some need before they do anything; therefore they look for payoff or reward. Thus in any organizational set up reward system becomes the key motivating factor in improving the performance of the employees.