The study assessed the contribution of intrinsic and extrinsic and extrinsic reward system on service quality. Also, the study tested the existence of the relationship between reward system and organizational performance. The variables under study involved intrinsic reward systems such as skill variety, task identity, task significance, autonomy, task feedback, and recognition as well as the extrinsic reward systems such as Extrinsic reward system such as bonus, housing allowances, salary increment, vocational travel, and promotion. The study used SPSS as the analysis software and the descriptive statistics and ANOVA were used to analyze the data and test the relationship between the variables. The findings, the R-squared value (0.927) shown that 93% of the variation in the dependent variable can be brought by other factors. The R-squared value (0.927) was greater than the adjusted R-squared value (0.916) because it imposed a harsher penalty. The study has indicated clearly that reward system leads to service quality and organization performance. The organization must create motivating reward systems in order to improve the performance of its employees. Intrinsic reward such as recognition, verbal and nonverbal as well as written recognition are very important in improving employee and organizational performance.