The leadership style of a supervisor affects employee satisfaction, and it also determines the effectiveness of a leader. Studies related to leadership style include earlier “Trait Theories of Leadership”, “Behavior Theories of Leadership”, “Contingency Theories”, and the more recent “new Leadership Theories”. All of these studies concentrate on the best leadership behavior. In recent years, the economic development and structure in our country suggest that service industry makes up nearly 70 percent of GDP; among which approximately 2.33 million of employee population (40 percent of total service industry employee population) are in the distribution industry. Distribution industry has become the main market for employee. Therefore it’s essential to study the perception and expectation of leadership style for employees of the distribution industry. This study used the dimensions of transformation leadership and transactional leadership for evaluation. Those students from Junior Extension College that contracted with chain stores and franchise association as its object, analyzes and discusses the expectation, perception and gap of employees to their supervisor’s leadership style in the distribution industry, and finally offers suggestion on the making and training of a supervisor and proper leadership style.