Abstract. The study was aimed to examine the effect of leadership development
on employee performance in Pakistan. This study was conducted considering five
factors of leadership development, i.e. coaching, training and development,
empowerment, participation and delegation and it was found that the combined
effect of these factors influences employee performance with 50%. However, rest
of the 50% contribution towards employee performance other than leadership
development factors can be the result of other factors such as: attitude,
commitment, motivational factors, and trust in the organization, and other factors
such as compensation, reward and bonuses etc. can also increase the employee
performance. The five variables collectively as leadership development factors
prove a synergic effect and increase the overall employee performance. The
policy alternative should be that organizations must be cleared about the learning
requirement of the employees. Therefore, both managers and employees must
collaborate effectively and communicate the requisite for performance.