Path-goal theory emphasizes that the leader should choose among four leadership styles to achieve optimum results in a given situation. Two important sets of contingency factors are the type of subordinates and the tasks they perform (a key environmental factor). The type of subordinates is determined by how much control they think they have over the environment (locus of control) and by how well they think they can do the assigned task.

Environmental contingency factors are those that are not within the control of group members but influence satisfaction and task accomplishment. Three broad classifications of contingency factors in the environment are the group members’ tasks, the authority system within the organization, and the work group. To use path-goal theory, the leader must first assess the relevant variables in the environment. Then he or she selects one of the four styles listed next that fits those contingency factors best.

The leader who is directive (similar to task motivated) emphasizes formal activities such as planning, organizing, and controlling. When the task is unclear, the directive style improves morale. The leader who is supportive (like relationship motivated) displays concern for group members’ well-being and creates an emotionally supportive climate. Group members who are unsure of themselves prefer the supportive leadership style.

The leader who is participative consults with group members to gather their suggestions, and then considers them seriously when making a decision. This style is well suited to motivated employees who perform nonrepetitive tasks. The leader who is achievement-oriented sets challenging goals, pushes for work improvement, and sets high expectations for team members, who are also expected to assume responsibility. This leadership style works well with achievement-oriented team members and with those working on ambiguous and nonrepetitive tasks.

A leader can sometimes successfully combine more than one of the four styles, although this possibility is not specified in path-goal theory.