“Motivation is the way to drive a person into doing something” (Watkins, 2004). According to Coleman, motivation is a driving force responsible for the initiation, persistence, direction and vigour of goal-directed behaviour (Coleman, 2009). Messick and Kramer explained that human beings join organisations for their personal needs, but the extent to which they are active depends on the extent to which they are motivated (Messick et al., 2004). Motivation can be inherent as well as extraneous. Leaders can extrinsically motivate their employees to improve their performance. The trait theories of leadership which were based on Fordism did not identify the importance of motivation as a quality in a leader instead it focussed on the inequality between leaders and others in an organisation (Harter et al., 2006). But the contemporary leadership theory like the Transformational Leadership theory elucidates that leadership is a process that changes and transforms individuals. This is in contrast with the transactional theory in which the leaders give punishments as well as rewards to boost outcomes (Bass, 1985). A leader who possesses the quality of motivation will be able to work with employees to develop specific goals, distribute rewards for the employee’s effort and be responsive to the needs and urgencies of the workers (Conger et al., 1998).