Employee performance is very important in order to evaluate the capability of the employee in performing the daily tasks. The objectives of this research are to analyze the condition of motivation and employee performance in PT Erna Djuliawati, as well as to analyze how much effect motivation has on employee performance. PT Erna Djuliawati is a subsidiary Company of Lyman Group under Lyman Timber Division, which is a manufacturer of high-quality wood based and related value added products. Their factory output is destined mainly for export markets in countries such as Japan, South Korea, China, and USA.This research uses the descriptive research method and causal research method. The population of this research is 4,150 employees, and the sample of this research is 365 employees. The result of coefficient of determination shows that 74.8% of motivation at PT Erna Djuliawati is affected by motivation. Based on the t test result, Tcount is higher than Ttable, this indicates that the null hypothesis is rejected and the alternate hypothesis is accepted which means that there is an effect of motivation on employee performance. The recommendations of this research would be providing seminars for the employees and convince them that they could achieve what they aspire to be by working. Then, company should provide a rise in salary or rewards for the employees, and making sure that the tasks assigned to are realistic and attainable. Lastly, the company should guide the employee on how to utilize the resources effectively and efficiently.