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The aim of the study is to re-examine the direct impact of transactional and transformational leadership styles on employee creativity and then after the application of mediating variable of organizational trust. The study has catered Pakistan?s Telecom sector to explore out the areas of leadership and its consequences on employees with perspective of creativity. The impact of mediating variable (Organizational trust) has also checked. Normally organizational trust is considered as positive entity, but the results extracted are not as per this perception. From total 300 usable employee survey, responses received were 210. Ten were excluded due to incomplete information. Rest 200 constituted a 67% percent response rate. Contributors including the sample were functioning in three types of jobs: R&D (49%), strategic marketing (30%), and functional professions (21%). The average age of the participants was 30.4 years. The average organizational tenure was 3.62 years. Among the 200 respondents, 139 were male; 61 were female. Reliability of extracted data was as per requirement. For Regression check, Preacher F. Hayes Test was used. For the process of results, it was proposed in hypothesis that both Transactional and transformational leaderships have positive relationship with employee creativity in presence of organizational trust. Extracted results have proved the first part that direct impact of Transactional leadership on dependent variable i-e Employee Creativity is positive. However, after tool application, results do not validates the hypothesis regarding positive output of the employee creativity with mediating variable. However, direct impact of transformational leadership on employee creativity has obtained significant and even after the inclusion of organizational trust as mediating variable the relationship has improved and showed full mediation. In results, the direct impact of transformational leadership on employee creativity is more than the explicit impact of transactional leadership on employee creativity.
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