The purpose of this empirical study was to investigate the effect of paternalistic leadership on organization-based self-esteem(OBSE). Paternalistic leadership is the prevalent leadership style in chinese business organization of the unit family. Also Paternalistic leadership is characterised by a patriarchal and hierarchical style of management. An empirical study conducted with 367 employees at 7 hotel restaurants. The results of this study were as follows. The two components of paternalistic leadership, namely benevolence and morality were found to be significantly influenced to OBSE, but authoritarianism was found to insignificantly influence to OBSE. And organizational identification was found to significantly influenced to OBSE. The two components of paternalistic leadership, namely authoritarianism, benevolence and morality were found to be significantly influenced to organizational identification. Finally, implications for theory and practice are discussed.