This study uses the procedure explained in literature Hoyle and Smith [74] and Prabhu to examine the mediating role of variable between the predictor and outcome variable. This procedure consists of different steps to observe the partial or full mediation. First, the direct effect of the predictor to the outcome variable is to be examined. Second, the indirect effect of the predictor to the outcome variable is to be examined throught mediating variable. If the predictor variable to the outcome variable is insignificant through the mediating variable, it indicates complete mediation. If the predictor variable to the outcome variable is still significant and path declines, it is the evidence of partial mediation. For both complete and partial mediation, the mediating variable should be significantly related to the predictor as well as outcome variable in the model with indirect effect. Table 2 represents the impact of transformational leadership on employee performance using two models i.e. direct and indirect model. These models are described in detail below.