Tremendous pressure is put both on people and organizations, to improve their performance in a rocket fast changing, extremely competitive business world (Stander & Rothman, 2010 (Laschinger et al., 2008;Bakker & Demerouti, 2007;Schaufeli & Bakker, 2004). The link between financial returns and positive outcomes as employee satisfaction, motivation or work engagement has also been set forth (Xanthopoulou et al.,2009;Harter et al., 2002). Both practice and research put forward that employees need to feel and be empowered to be truly engaged. Major aim of this study is to figure out the impact of empowerment on engagement and the most effective leadership style for employees to perceive empowerment that will lead them to be engaged. Some of the existing studies in literature signal the culture-bound effect of leadership style for employees to respond positively on empowering practices (Avolio et al., 2004;Pellegrini & Scandura, 2006