The purpose of this paper is to identify the factors that effects employee motivation and examining the relationship between organizational effectiveness and employee motivation. A model was designed based on the literature, linking factors of employee motivation with employee motivation and organizational effectiveness. Three hypotheses were build based on the literature and the model and were tested in perspective of the previous studies and literature. \r\nThe literature and various studies concluded that factors: empowerment and recognition have positive effect on employee motivation. More the empowerment and recognition of employees in an organization is increased, more will their motivation to work will enhance. Also there exists a positive relationship between employee motivation and organizational effectiveness. The more the employees are motive to tasks accomplishment higher will the organizational performance and success.\r\nThe study focuses on the practice and observance of the two central factors, empowerment and employee recognition for enhancing employee motivation which leads to organizational effectiveness. The organizations should design their rules, policies and organizational structures that give space to the employee to work well and appreciate them on their tasks fulfillment and achievements. This will surely lead to organizational growth.
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