A study examined the relationships between leadership conversation and its impact upon organizational members' levels of organizational identification and behavior. It was hypothesized (1) that effective leader conversation would be associated with higher levels of role, means, goal and overall organizational identification, and (2) that conversations by leaders perceived as effective rather than ineffective would be viewed as more intrinsically and extrinsically motivating. Subjects, 66 employees from two large midwestern hospitals, were selected by using a proportionate stratified sampling technique and were then given a highly structured interview. Subjects were asked to identify two individuals considered leaders, one of whom provided effective leadership and one of whom did not. After identifying a variety of situations where motivation was the goal, the subjects selected and reconstructed a representative conversation with each leader. The subjects were then asked to complete three questionnaires based on the two constructed conversations. Results indicated that the degree to which an employee viewed the leader conversation as meaningful was positively associated with identification and motivation. Results also indicated that means and goals identification were better predictors of organizational identification than role identification. Employees perceived a strong relationship between their desire to participate in conversation (intrinsic motivation) to achieve a goal, and the degree to which the conversation compelled them (extrinsic motivation) to accomplish a desirable goal. (Tables of data are included, and 43 references are attached.) (NKA)