Conversion of Electrical Energy To Heat Energy

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Hi all, Can Anyone tell me What is actually happening when we placed an Electrical rod in a Bucket Of Water? No Doubt after some time water will heat. But how? I mean to say How Electrical Energy Converted To Heat Energy?
 
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To expand a bit on DaleSpam's explanation, the voltage across the resistance of the rod's nichrome wire generates a current in that wire. The motion of the electrons (who get their energy from the voltage potential) generate "collisions" with the atoms in the wire, which transfers energy from the electron's (kinetic) energy to the metal lattice of atoms. The atoms "vibrate" more from this extra energy, and that appears as heat energy. This is kind of a classical description, rather than a full solid state physics description, but hopefully it helps you to picture how the energy from the voltage source is transferred to the driving force on the electrons, and from there to the vibrations in the atomic lattice of the metal of the rod, which is heat energy.
 
See Wikipedia:
http://en.wikipedia.org/wiki/Heat_transfer

which discusses conduction, convection and radiation...Your question is answered by the discussion on CONDUCTION.

If you have sat in front of a glowing fire: that's radiant warmth; the warm air rising from a radiator is convection as is the cold draft from a wintertime window.

For more, Try Wikipedia: HEAT