Master's Thesis from the year 2018 in the subject Leadership and Human Resources - Miscellaneous, grade: 2, Addis Ababa University, language: English, abstract: Motivation seems to be one of the most important tools of Human Resource Management. Organizations design motivation systems to encourage employees to perform in the most effective way but also to attract potential candidates. Employee motivation is a significant psychological aspect of management. To maximize the effort and performance of employees, there should be a mechanism of motivation. This study sought to investigate the effect of employees' motivational factors on employee's performance with special reference to federal Public procurement and property disposal service. This study was conducted based on the data gathered from employees of federal public procurement and property disposal service. This study adopted explanatory research design. The target population for this study was 177 employees of federalPublic procurement and property disposal service. A census sampling was done and so the 123 employees constituted the sample size. A representative sample was drawn from this population using probabilistic sampling technique (simple random sampling) to select sample elements from the organization. The data collection tool was the questionnaires which contained closed ended Survey and face to-face interviews. Out of 123 questionnaires that have been distributed, all were usable. The mean value of the five point likert scale values of the dependent and various independent variables were taken as motivational factors which determine the performance of the employees. The analysis of the data was done with the help of the Statistical Package for Social Sciences (SPSS) and EViews. The research results found that Payment, promotion, Co-worker relation, supervision and Career development as major influencing factors for employee's performance. Whereas responsiveness were found to have insignificant effect on employee's performance in federal public procurement and property disposal service. The study recommended that to increase employees performance, organizations need to focus on modernpay package, having sound leadership, promotion of staffs, smooth co-worker relationship and plan and execute shorter and long term training.