Path Goal Leadership Theory

Overview of Path Goal Theory of Leadership:

This theory was developed from expectancy theory to describe the way that leaders encourage and support their followers in achieving the organizational goals that have been set for them by making the path clear and easy. This theory emphasizes the relationship between leader’s style and subordinate characteristics and the work-place setting. Subordinates get motivated when they think that they are capable of performing their work and believe that their efforts will result in a certain outcome and the payoffs for doing their work are worthwhile. In particular, leaders should be doing the following three tasks:

1. Clarify the path so that the subordinates know which way to go. This motivates the members of the group by clarifying the path to personal rewards that result from attaining work goals. You have thus `fixed' him on the job and made him see that his performance can lead to positive or negative rewards. An ambiguous work environment increases stress, thus decreasing satisfaction and productivity.

2. Once you have made the path-goal clear to the members and also told them about what the job requires, the next step is to remove roadblocks that are stopping them from reaching there. Leaders provide followers with the elements they think subordinates need to reach their goals. They also help the followers through coaching and direction, removing obstacles and roadblocks to attaining the goal, and making the work itself more personally satisfying

3. The third step is increasing the rewards along the route. Leader must offer the reward to the member of the group who actually accomplishes the task. Your reward may as simple as praise or can also lead to increase in the pay or promotion of the member to a higher position. Your judgment about the desirability of the member to a higher position is crucial. Your judgment about the desirability of the member's effort and the goal helps you to decide whether and what reward can be given.

As per this theory the leader's effectiveness is directly tied to the ability and willingness of that leader to ensure a satisfying work environment that provides rewards for achieving goals that are clearly stated.

Four Styles of Leadership:

Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold.

This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors. Although many different leadership behaviors could have been selected to be a part of path–goal theory, this approach has so far examined four styles of leadership; directive, supportive, participative, and achievement-oriented.

1. Supportive Leadership:

Supportive leadership consists of being friendly and approachable as a leader. It includes attending to the well-being and human needs, considering the needs of the follower, showing concern for their welfare, treating them equal, giving respect for their status and creating a friendly working environment. This also includes increasing the follower's self-esteem and leaders using supportive behaviors go out of their way to make work pleasant for subordinates. This approach is best when the work is stressful, boring or hazardous.

2. Directive Leadership:

Telling followers what needs to be done and giving appropriate guidance along the way. Such leader gives subordinates instructions about their task, including what is expected of them, how it is to be done, and the time line for when it should be completed. This includes giving them schedules of specific work to be done at specific times. Rewards may also be increased as needed and role ambiguity decreased (by telling them what they should be doing). A directive leader sets clear standards of performance and makes the rules and regulations clear to subordinates. This may be used when the task is unstructured and complex and the follower is inexperienced. This increases the follower's sense of security and control and hence is appropriate to the situation.

3. Participative Leadership:

Participative leadership consists of inviting subordinates to share in the decision making. Consulting with followers and taking their ideas into account, integrating their suggestions into the decisions and taking particular actions. This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it.

4. Achievement-Oriented Leadership:

Such a leader challenges subordinates to perform work at the highest level possible, setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected and the leader establishes a high standard of excellence for subordinates and seeks continuous improvement. The leader shows faith in the capabilities of the follower to succeed, shows a high degree of confidence that subordinates are capable of establishing and accomplishing challenging goals. This approach is best when the task is complex.

Discussion on Leadership Styles:

House and Mitchell (1974) suggested that leaders might exhibit any or all of these four styles with various subordinates and in different situations. This approach assumes that there is one right way of achieving a goal and that the leader can see it and the follower cannot. Different situations may call for different types of leadership behavior. This casts the leader as the knowing person and the follower as dependent. It also assumes that the follower is completely rational and that the appropriate methods can be deterministically selected depending on the situation. There may be instances when it is appropriate for a leader to use more than one style at the same time. It is very important for the leader to know every member as a person, in order to use a style to get the best out of the member. For example, a task-oriented leader is preferred by a highly achievement-oriented member, whereas a person-oriented leader is preferred by a person who needs a good deal of affiliation with others. The theory further asserts that the connection between a leader’s style and his or her effectiveness depends on a number of variables.

1. Employee Characteristics:

Subordinate characteristics determine how a leader’s behavior is interpreted by subordinates in a given work situation. According to the path-goal leadership theory, employee characteristics include employee’s experience, anxiety, needs, perceived ability, locus of control, satisfaction, and willingness to leave the organization.

2. Work Environment Characteristics:

Task characteristics include the design of the subordinate’s task, the formal authority system of the organization, and the primary work group of subordinates. Work environment factors include team dynamics and task structure which are outside the followers’ control.

Conclusions from Path Goal Theory:

This theory was developed to explain workplace leadership. It is good for the leader to know each situation and to adjust his style of functioning for better results. It emphasizes understanding the needs of subordinates within the context of their working situation and using the appropriate style of leadership to help subordinates achieve their work goals. One implication of this approach is that leaders need to adopt multiple leadership styles and be able to tailor these styles to the characteristics of the subordinate and the situation. This theory provides a practical model that highlights the important ways in which leaders can help subordinates. With a clear task on hand, members feel satisfied if the leader is supporting them. They may not show a lot of output, but they are satisfied. On the other hand with a less clear or vaguer task on hand, member show more output, if the leader directs them to work better. The member in this situation may not be very satisfied. This theory helps us to understand the authority of a leader and his sources of power, which help him to exercise influence on the subordinates.