¿Managerial Leadership¿ takes an Organization to greater heights, towards the achievement of vision and mission of the Organization. The study aims to assess the perception of the employees about leadership effectiveness in relation to the employee¿s satisfaction at BHEL (PSNR). The study also identifies areas of strengths and need for the improvements in different aspects of leadership which may help in improving the satisfaction level of the employees and hence, better performance at the work place. The LSQ (Leadership Survey Questionnaire) has been used to identify Leadership styles in the organization. The LSQ was sent to the different executives at both the sites and at the Headquarter. The study was conducted at the executive level (E1-E8) at 35 sites. The study found a statistically significant relationship between transformational leadership and some factors of employee satisfaction. A statistically significant relationship exists between leadership style and employee satisfaction levels in BHEL (PSNR).