This is an exploratory study undertaken in 31 companies of automobile parts and accessories manufacturers, located at Lahore, Pakistan to investigate moderation effect of leader’s self- efficacy on relationship between leadership styles and employees’ performance. Data was analyzed using linear regression. The study used four basic leadership styles identified in a recent land mark study by Hussain, Hassan and Khan (Hussain et al., forthcoming). These four leadership styles represent most of the leadership styles available in the literature. The four leadership styles are taken as independent variables, the employees’ performance as dependent variable and leader’s self-efficacy as moderating variables. The results of the study show that (1) leader’s selfefficacy does not significantly (α>0.05) impact the correlation between transformational-integrated leadership style and employees’ performance and the correlation between pacesetting-integrated leadership styles and employees’ performance (2) leader’s self-efficacy significantly (α>0.05) impacts the correlation between authoritative-integrated leadership styles and employees’ performance and democratic-integrated leadership styles and employees’ performance. Research will help organizations in hiring of new leadership and in the setting priorities of leadership development. While study has been conducted within special context of Pakistan, it is expected that its findings are generalizable due to size of the sample and extensiveness of the study.
Keywords: Leadership styles, Regression analysis, leader?s self-efficacy, Moderation Effect