In the banking sector, high productivity is a huge challenge for leaders and subordinates. A psychological approach is therefore required to vigilantly boost the productivity of the employee. Hence, the Rosenthal effect is studied as an important phenomenon to energize subordinates performance and increase their productivity in any organization, this study will be helpful in understanding this concept in Pakistan. There are many types of research on leadership styles with different variables but, empirical work on the relationship between leadership style and the Pygmalion effect is under development. Productivity, job outcomes, organizational performance can be increased if leaders understand and apply the phenomenon of the Pygmalion effect.