Outpatient physical therapy clinics (OPTC), like many other healthcare organizations, face an array of challenges in meeting the needs of the growing elderly population. The leadership behavior of OPTC managers is a key component to secure employee loyalty, accommodate increased patient demand, and implement positive organizational change. The purpose of this nonexperimental quantitative survey designed study was to investigate the relationship between the leadership styles perceived by OPTC healthcare managers and nonmanagerial employees, as measured by the Multifactor Leadership Questionnaire Short. The primary research question examined the difference between the OPTC managers' self-perceived leadership style and the nonmanagerial subordinates' perceptions of the manager's leadership style. The theoretical framework was the transformational and transactional leadership theory by Bass. Sampling was random and comprised of a minimal sample of 89 respondents. Data analysis included both descriptive and inferential statistics. Multiple regression analysis and correlations statistical models were used to predict the relationship of the dependent and independent variables. The results of the present study indicated a statistically significant relationship between the leadership style of OPTC managers and job effectiveness. All leadership styles of the OPTC managers were moderately correlated with job effectiveness, whereas passive/avoidant was negatively related to job effectiveness. This study is significant for OPTC leaders in their quest to create a leadership environment that fosters a positive influence on overall job performance and satisfaction among nonmanagerial staff, a formula for growth, and positive social change.