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This article examines whether the emotions of frustration and optimism mediate fully or partially, the relationship between leadership style and subordinate performance in the context of structural equation modeling a likert type measurement was applied to 285 teachers in the province of Ankara path analysis was used to explain the direct and indirect relations between dependent and independent variables. The findings suggested that transformational leadership as a significant effect on frustration and optimism. Frustration and optimism have a direct effect on performance. One of the other important findings showed that frustration and optimism mediate, fully, the relationship between transformational leadership and performance. Thus the effect of transformational leadership style on performance is significant but indirect. Summary School principles are the key people to create an excellent school.His managerial skill plays an important role on school's success. The roles of principles require them to show their leadership styles. Leadership style is considered to be an important factor in achieving organizational goals and increasing the performance of workers (Steelik, 1998; Karip, 1998). However, any leadership style alone can explain neither the performance of workers nor the achievement of organizational goals. Workers' perception of the main's leadership style and emotions that they acquired are also important factors. Problem A certain type of leadership either increases or demolishes the motivation of teachers. There are a lot of researches that explains the relationship between leadership styles and teachers' motivation. (Hipp and Bredeson, 1995; Bogler, 2001).Although there is something in common between the styles of transformational leadership and transactional leadership; There are also differences between them. When these differences are taken into consideration, the concept of transformational leadership has become the focus of interest in recent years (Gardner and Avolio, 1998). A transformational leader is a person with a vision and he creates trust and respect and causes them to have humanistic emotions. Emotions play an important role on the motivation of workers.(Fitness,2002). Leaders who realize the emotions of their juniors can motivate them to make them work effectively and productively. Transformational leaders use their emotions to motivate them. For this reason, they support them and help them to have an emotion of optimism. This study attempted to answer the following questions: 1.In an educational institution, does the perceived of transformational leadership style have a direct effect on the emotion of optimism? In an educational institution, does the perceived transformational leadership style have direct negative effect on the emotion of frustration? School managers have the responsibility of directing and evaluating teachers and other workers. It is not incorrect to think that the performance of the workers can be affected by the leadership style the manager shows in his organization. For this reason, knowing if emotions mediate the relationship between leadership style of emotions and performance will yield significant results. The aim of this research is to find out how the emotions of frustration and optimism play a role in the relationship between these emotions and teachers' performance. Method In this research the sample is the 285 teachers working in 21 primary schools in the central towns of the province of Ankara during the 2004-2005 academic year. Three different questionnaires in Likert -type were used to get data. The first one is the one developed by Bass and Avolio (1990), leadership questionnaire (MLQ). The second one was developed by the researcher and it is a 27-question questionnaire used to measure the emotions in the workplace. For performance measurement, 360 degrees performance evaluation questionnaires developed by the Ministry of National Education were used. After the reliability and validity of the measurements, Pearson Moment Correlation coefficients were calculated. To test the model, Path analysis was used. Findings The findings showed that the performance of teachers were significantly related to transformational leadership (r=.23, p<.0001), emotions of optimism (r=.24, p<.0001), and emotions of frustration (r=.33, p<.0001; Table 2). The relationships between these variables show that the more teachers perceive their school leaders as transformational leadership the more performance they show. The findings of the research show that teachers' perception of their school leaders as transformational leadership directly increases the emotions of optimism and indirectly their performance. In other words, perception of transformational leadership at a low level results in a high level of frustration which may have a negative effect on the performance of teachers. This finding seems to support the first and second sub problems. Leadership styles like 'transformational leadership style' which causes emotions of optimism to emerge and develop may help the reasons can help the reasons that decrease performance to be decreased Moreover, the findings of this research support the findings of Dubinsk (1995), Kennedy and Anderson(2002). The findings have yielded three important results: First, transformational leadership style that the managers show in their schools has a motivating effect on workers. Besides, transformational leadership style may cause emotions of optimism to emerge. Lastly, transformational leadership style and emotions of optimism increase performance. Findings suggested that in order to improve teachers' performance, candidate leaders' and working leaders' transformational leadership capabilities should be further enhanced.

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