This research concerns itself with the effects of authentic leadership and a positive organisational context. Gardner, Avolio, Luthans, May and Walumbwa’s (2005) authentic leader and follower development model suggests that authentic leadership within a positive organisational context leads to increased authentic followership, which in turn influences positive follower outcomes, and finally leads to sustainable and veritable organisational performance. A research contextual framework, based on Gardner et al.’s (2005) model, is developed with one significant change being the repositioning of a positive organisational context as a relatively more significant construct in the development of authentic followership. The research contextual framework and in particular the correlations between the various constructs are tested. This is performed through a quantitative study based on the completion of a research questionnaire by employees at four South African based services companies. In addition to a general testing of the various correlations, the role of a positive organisational context is specifically investigated in order to shed light on which model better reflects the authentic leadership development process: Gardner et al.’s (2005) model or the research contextual framework. It is also intended that this research will provide insights into whether general authentic leadership theory can be generalised to a South African context. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted