This case study adopted qualitative research using ethnography method. The study investigated the effects of leadership styles on the organizational climate at a selected government agency in Kota Kinabalu, Sabah. A total of 25 employees from six departments wereinterviewedto gather data for analysis of the real life experience of employees. The results would be beneficial in an organization for both the employer and employee. The different types of leadership styles, emotions, feelings, self-esteem and emotional management, employees’ relationship and types of training in creating organizational climate were also discussed. The result of the study is important for policy implementation, employees’ career development, theoretical knowledge and understanding the status of the organization. The study also found that leaders who failed to exhibit strong character,making the best use of resourcesand produce results at organization would not be able to achieve and sustain effective administration, achieve goals, sustain quality and deliver first-rate services. The study would also provide recommendations based on the findings.