This bachelor thesis is focused on the relationship between intrinsic and extrinsic motivation and employee performance. The thesis is a literature research and thus a review by the work of others. In earlier research on this topic conducted by Vroom (1964) was concluded that a positive correlation between motivation and performance did not exist. However, later research proved that it is indeed possible to motivate employees intrinsically and extrinsically to perform well. It appears that when the organisation provides certain job characteristics, employees can be motivated to perform well in the organisation. And it also appeared that intrinsic factors have more effect on the relationship than extrinsic factors.