Abstract
This study aims to analyze and compare two direction graces and their effect on employee innovation & continuous improvement. This research is unique in nature and first to explore combined effect of leadership styles and their output and unique mediation and moderation effect. Study used structured questionnaire for data collection purpose that was distributed in employees to voluntarily participate in the survey and responded to the questions using a self-administration technique. After collecting required information, data has been analyzed over SPSS. This study aims to find results of research model were supported by extensive literature review, mainly on transformational leadership style and relation with innovation and continuous improvement. In this current study, empirical relationships will be explored with mediation and moderation effects. Consequently, the current research provides input to the organizations as to how they can face challenges in future. Best leaders make healthy relation with employees and motivate them to work. With the support of leaders, employees enjoy working in organizations and indulge in day-to-day activities.
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