The basic idea behind the theory is that leaders have to motivate subordinates in order to make them achieve the goals they have.

The theory dates back to the 1970s where Evans, House, Dessler, Mitchell, and others pushed the notion that employee performance could be enhanced through motivation.

As a contingency theory the Path Goal Theory tries to explain what leadership style is best suited to the situational factors it deals with.

Situational Factors

This theory considers two situational factors that the leader has to confront: the subordinate and environment. The description of each of them is as follows:

Subordinate

Situational characteristics of the subordinate includes:

• Authoritarianism: is defined as the degree to which the employees want to be told what to do and how to do the job.
• Locus of control: is defined as the way the employee sees his/her responsability towards his activities. You can have an internal or external locus of control. Internal locus of control means that you feel that you control goal achievement. On the other hand, external locus of control means you feel goal achievement is controlled by others.
• Ability: is the extent of the employees’ ability to perform tasks to achieve goals.

Environment

This situational variable includes the following:

• Task structure: how repetitive the job is.
• Formal authority: is the power position of the leader.
• Work group: is how the coworkers contribute to job satisfaction, or the relationship among them.

Leadership Styles

There are four leadership styles that can be used by the leader to help the subordinates achieve the goals.

• Directive:A directive leader instructs the subordinates and gives them clear and specifics instructions to perform their tasks, the timeline for job, and the standard by which the job is measured. A directive
• Supportive: A supportive leader deals more with the well being and the human needs of the subordinates. Supportive leaders treat subordinates as equals.
• Participative: A leader who exerts a participative style is one who invites subordinates to share the decision making. This kind of leader ask subordinates for ideas, opinions and takes their suggestions into account.
• Achievement-Oriented: A leader who exhibits this style, establishes a high standard of excellence for subordinates and seeks for continous improvement. A leader like this shows great confidence in their subordinates to set and achieve challenging goals.

Path Goal Leadership Theory Applied

The next chart displays what leadership style suits best the different situational factors

Ups and Downs of the Path Goal Leadership Theory

The Up Side

• What leadership style to use is the goal of the theory. It informs leaders about how to choose an appropiate leadership style based on the situational variables.
• Considerates motivational factors in the theory, in fact, it was the first to incorporate these factors from the expectancy theory.
• It’s practical. It tells you what leadership style to use in different situations.

The Down Side

• Broad Scope.The scope of the theory it’s too broad, trying to incorporate so many variables in the prediction of the proper style to a specific work setting and task can be very hard to do.
• Not clear on leader behavior - worker motivation. The theory doesn’t clearly explain the relationship among these factors. In other words, the theory does not explain how a leader can employ the leadership styles to assist employees to feel competent or assured of success.
• A one-way direction. The theory places great responsibility on leaders and much less on followers. Followers risk to become dependent on the leader, because theory promotes dependency.

Summary to the Path Goal Leadership Theory

The Path Goal leadership theory dates back from the 1970s, and it was the first leadership theory to include subordinate motivation. In fact, the basic principles of it are derived from the expentacy theory.

This is a contingency theory, and as such it tries to identify which leadership style best suits the different combinations of situational variables. The theory identifies four different leadership styles, and two situational factors: the employee (subordinate) and the environment. Each of the situational factors has a set of variables that define them.

The theory provides a framework to understand how the four leadership styles affect employee performance (satisfaction and productivity).

The scope of the theory it’s too broad, there are so many combinations of the situational variables that it’s a daunting task to clearly define the situation.

Further Investigation and References

Northouse, P.G. (2004) “Leadership Theory and Practice” (3rd Ed)
Sage Publications

Lussier, R.N.; Achua, C.F. (2004) “Leadership: Theory, Application, Skill Development” (2nd Ed)
South-Western

Yukl, G.A. (2002) “Leadership in Organizations” (5th Ed)
Prentice-Hall