Using a sample of 202 dyads of supervisors and subordinates from two companies located in the south area of China, the researchers empirically examines the relationship between transformational leadership and employee job performance, the mediating role of psychological capital, and the moderating effect of traditionality. Results indicate that transformational leadership is positively related to psychological capital, psychological capital mediates the relationships between transformational leadership and inrole performance and organizational citizenship behavior, and traditionality moderates the relationship between transformational leadership and psychological capital, that is, the relationship is stronger for more traditional than for less traditional subordinates.