Abstract—This article is a part of a research study carried out for the Ph.D dissertation. one of the aspect of the research was to explore the relationship between leadership behavior and acceptance of leader by the subordinates. The moderating variables of study were situational factors i.e. subordinates’ characteristics and environmental characteristics. Path-goal theory was tested in telecom industry of Pakistan by conducting research on the 60 middle and 140 lower managers of four mobile companies. Data analysis revealed significant relationship of subordinate acceptance of leader with leadership behavior and situational factor .It was also found that leadership behavior affects subordinates’ acceptance of leader and can be used as predictor of acceptance of leader. Management of the cellular companies may be benefited from the findings of this research, so there are some recommendations for them at the end of this article. Index Terms—Path goal theory, subordinates’ characteristics. environmental characteristics, leaderships’ behavior, acceptance of leader. The term leadership has different connotations to different people that create ambiguity of meaning. According to [1] this ambiguity emerges from the fact that the concept entails a multifaceted interaction among the leader, his subordinates and the particular situation Leadership is a universal phenomenon and has been defined and studied from a wide variety of perspectives and disciplinary approaches as narrated by [2] this has resulted in different theories of leadership. Reference [3] reported that a few years ago, fifty-four leadership experts from thirty-eight countries reached a consensus that leadership means an ability to influence, motivate and enable others in a way that they contribute towards the efficiency and accomplishment of the mission/goals of organizations which have employed them. A leader is a person who exhibits ideas, vision, values, influences others, and makes tough decisions. If a person possesses these key attributes then he can act as a leader as in [4] “leadership occurs when particular individual exerts Manuscript received September 20, 2013; revised November 21, 2013. Sikander Hayat Malik is with the State Bank of Pakistan Based at Karachi, Pakistan (e-mail: sikandar.malik@hotmail.com). Shamsa Aziz is with Department of Education, International Islamic University Islamabad , Pakistan (e-mail: phd_edu@yahoo.com). Hamid Hassan is with the Federal College of Education, Islamabad Pakistan (e-mail: phd_edu@hotmail.com). influence upon others for the achievement of goal in an organizational setting by enhancing the productivity, innovation, satisfaction, and commitment of the work force”. Sometimes leadership is seen as a process while some times as a relationship. Some scholars view it as the outcome of a set of traits/attributes, while there are others who regard it as a social process that emanates from relationships among the group. This difference in perception always results in different estimation of the leadership‟s character e.g. as defined in [5] leadership as the process by which ideas and a vision are developed, then living by values that support those ideas and that vision, influencing others to embrace these values in their own behaviors, and making hard decisions about human and other resources but [6] defined leadership as a relationship through which leaders influence their followers. To [7] leadership is a series of functions that have to be carried out in order for the group to be effective. Where the group‟s task may need to be clarified, resources may be required, occasionally the spirits of group members may need lifting, and the group‟s output must eventually be evaluated. Thus leadership is the art or a process of influencing people and motivating them to work willingly and enthusiastically towards the attainment of common goals through maximum application of his/her capabilities and in this process leader facilitates progress and inspires the group to attain goals, which the organization has set for itself. Reference [8] says that despite the fact that leadership is recognized as an important skill a mystery prevails as to what it actually is and how it can be defined. B. Effective Leaders When the subordinates believe in leader, Idealize him, unconditional follow him and accepts him blindly than we say he is an effective leader. Reference [9] say that the leaders that can be called effective when they are helpful to a group of people for defining their goals and finding certain ways through which these goals can be achieved C. Leadership Behavior Leadership behavior is the behavior; a leader exhibits. D. Path-Goal Theory of Leadership The Path-goal theory of leadership is widely recognized contingency approach to leadership. The concepts and terminologies used in Path-goal had already been used [10] at University of Michigan‟s Institute of Social Research, before it was developed and published as a theory [11], [12]. Path-goal theory of leadership is based on Vroom‟s expectancy theory of motivation with its concepts of expectancy, outcomes, valence and instrumentality. [13] Leadership Behavior and Acceptance of Leaders by Subordinates: Application of Path Goal Theory in Telecom Sector Sikandar Hayyat Malik, Shamsa Aziz, and Hamid Hassan International Journal of Trade, Economics and Finance, Vol. 5, No. 2, April 2014 170 DOI: 10.7763/IJTEF.2014.V5.364 I. INTRODUCTION A. What Is Leadership?