The purpose of this research is to determine that does leadership styles that is Transformational leadership style and transactional leadership style has an impact on employee performance. Also we wish to see that if job satisfaction has a mediating effect or not. For this purpose data was collected from 6 schools working in Rawalpindi and Islamabad. Result shows that transactional and transformational both are significantly positive associated with Employee performance however transactional leadership was more significant then transformational. Another important discovery made was there is no mediating role of Job satisfaction between transactional leadership. But it mediates with transformation leadership and employee performance.