In the thesis, I wanted to determine the extent, to which motivation and rewards in a company affect employee satisfaction and consequently the performance of the company itself. Satisfied employees produce good results and thus contribute to the success of the company; therefore, it is important that the management motivates employees successfully to do their job. Employees are motivated the most by an appropriate reward system. The management of a company, which wants to be successful, must integrate and take into account its employees when designing a reward system, which must be designed exclusively for a particular company, since each company is unique. In the thesis, I studied the rewarding system, which affects successful motivation of employees. I analysed, how satisfied employees affect the company’s performance. Based on theory, I prepared a survey, which I carried out in the company X, located in the Ljubljana region. I have found that the performance of the company depends on employee satisfaction. The results of my analysis have shown that a properly designed rewarding system motivates employees adequately and thus affects their work satisfaction, thereby increasing the overall performance of the entire company.