The purpose of this study was to investigate the relationship between bosses’ leadership style and employees perceived internal politics. As the data collection instruments, the moderated Multifactor Leadership Questionnaire, MLQ (Form 5X) developed by Bass and Avolio (1997) [3] was used to measure the bosses’ leadership style in subordinates perspectives and Perceptions of Internal Politics (POP) scale developed by Kacmar and Ferris (1991) [12]was used to measure the subordinates’ perception on internal political of the organization. Questionnaire was distributed to the 200 employees working in the ABC telecommunication company and completed 178 questionnaires were received. The research findings discovered that majority of the bosses having transformational leadership style, however, considerable volume covered both transformational and laissez-faire leadership style, as per subordinates point of view. Research findings also suggested that internal politics exists with in the organizational settings. The negative relationship between transformational leader and the perceived internal politics was visible nevertheless the relationships between transactional leadership and laissez-faire leadership with internal politics were recorded as passive. It suggested that, transformational leaders actively engaged with employee development while they are encourage employees in achieving the organizational goals. Moreover transactional leaders highly task oriented and use rewarding mechanism to get the work done from the employees, creating perception of internal politics exists in employees mind. The laissez-faire leaders who are delaying the decision making, obviously influenced by the other force within the organizational setting, persisting the feeling of ‘internal politics exists’ with in employees. This situation is adversely effect on the organizational performance and employees’ job related attitudes.