Hammer on is a basic Technique which Allows you to play Two Notes by Picking only once. For Example Put your Index finger(pointer finger) on 5th Fret pick it once and without re-picking hammer your Ring finger's Tip (3rd finger) on 7th Fret. When you will hammer it with Force you will hear 2 notes ringing instead of one.
It takes time to get good Co-ordination in your fingers and your hands & to master this techinque. this is a very easy technique. The faster you will hammer you will get good hammering effects.