It is important to recognize workplace stress because workplace stressors badly affect people’s mental as well as physiological health. Some of the reasons of stress at workplace could be the inability to meet out the demands of the job, relationship with colleagues and to control subordinate staff. After starting one’s career the key stressors are related to work, environment and people. Stress is the reaction of body due to interaction with any stimulus in the environment. This study focuses on how workplace stressors effect the motivation of an employee and what it outcomes in term of employee performance. In this study, there are several variables relating to employee performance, motivation and job stresses, whose types of measurement are interval and simultaneously investigated the several variables through structural equation modeling (SEM). The result shows that role conflict, role ambiguity and performance pressure has positively effect the employee motivation and it leads to positively affect employee performance. This study indicates and highlights the intensity of those factors that are involved to create a stress environment in the organization. So this study is policy oriented to maintain a required level of stress in the organization.