Motivation is and indispensable part of effective management of human resources both    in public sector and in private sector. Employee motivation  is the means by which the employees can be encouraged to contribute to the aim and objectives of the organization. The lesson for leaders is that motivating employees is a task far more complex than a simple increase in salary. In this context we mention the importance of the non-financial motivation. Non-financial motivation covers a wide range of driving factors and is based on a large number of theories. The diversity in applying non-financial methods of motivation depends on the creativity of the leader.