This thesis presents a study researching the relationship between leadership styles and intrinsic and extrinsic rewards. Specifically, the study tested whether leadership styles affected employees' preferences for intrinsic and extrinsic rewards. The current study also examines whether leadership styles influence the likelihood that leaders would use intrinsic or extrinsic rewards. The sample consisted of three Brisbane-based organisations, from different industries. Questionnaires based on pre-existing scales from the literature were distributed to 11 managers and 118 of their employees. Questionnaires requested information about employee motivation, managers' use of rewards and employees' preference for certain rewards. Correlations, Analysis of Yariance (ANOYA) and regression analysis were used to test the relationship between leadership styles and intrinsic and extrinsic rewards. An analysis of the results found that transformational leaders were significantly less likely to use extrinsic rewards to motivate their employees. In addition, employees were more motivated if their managers provided intrinsic rewards. However, many of the hypotheses failed to be supported statistically through the results. Despite the lack of significant results, some clear relationships emerged. Results indicate that employees of relationship focused leaders were more likely to be highly motivated and that relationship-focused leaders appeared more likely to use intrinsic rewards.