The aim of this paper is to enhance the understanding of the relationship between the lean practices and the operational and financial performance of the organization. A sample of 100 manufacturing firms shows direct effects of 5S on the performance. Many manufacturing firms are adopting 5S activities as a daily practice, but understanding its effects on the performance of an organization is important. Also, effect of 5S implementation on the employee of the organization is carried out in the research. The study is carried out on around 100 manufacturing firms which have implemented lean activities and used 5S tool. The results of study are promising and shows a considerable positive effect on both operational and financial performance, also it is helpful for the employees of the organization.