Pakistan Social Sciences Review December 2017, Vol. 1, No. 2 [35-48] P-ISSN 2664-0422 O-ISSN 2664-0430 RESEARCH PAPER The Impact of Transformational and Transactional Leadership Styles on Employee’s Performance Mariam Naeem 1 Muhammad Arif Nawaz 2 1. Lecturer , Department of Business Administration, University of Sialkot, Punjab, Pakistan 2. Ph. D Scholar , Department of Commerce , Bahauddin Zakariya University Multan, Punjab, Pakistan PAPER INFO ABSTRACT Received: July 16, 2017 Accepted: November 05, 2017 Online: December 30, 2017 This study evaluates the strategic and defensive relations between Pakistan and China along with the concept of soft power. Relationship between Pakistan and China is always being focused by the world. The developments of these relations are discussed with the help of historical data. Despite differences of society, language and culture, between these two countries the friendship is enhancing day by day. The study examines the facts back of the phrase of Time-Tested Pakistan China Friendship: Deeper than Oceans, Sweeter than Honey, throughout the history of Pak-China relations, these remained in positive directions. Pakistan and China should shared interests for regional stability, enhancing economic opportunities and regional cooperation. Keywords: Transformational Leadership, Transactional Leadership Employee Performance Corresponding Author: mformustafa@gm ail.com Introduction In current period of time globalization and of Information technology are at boom by way of speed, size and variations in business world, flexibility and ability to response according to the goals and objectives set by their leadership both are crucial to become successful in highly competitive environment. In order to meet stakeholder’s expectations and current complex environmental challenges a strong and clear leadership is necessary as leaders can play the role of bridge to achieve organizational goals and objectives. Leaders are facing greater challenges than ever before due to the increased environmental complexity and the changing nature of the organization. Leadership can make changes in the way organizations operate through setting a