The path-goal model is used to determine employee objectives and how to achieve them. The model focuses on how leaders influence employees’ perceptions of their goals and the paths they follow toward goal attainment. Subordinate situational factors are (1) authoritarianism (the degree to which employees defer to leaders), (2) locus of control, and (3) ability (the extent of employees’ ability to perform tasks to achieve goals).

Environmental situational factors are (1) task structure (repetitiveness in the job), (2) formal authority (leader’s power), and (3) work group (the extent to which coworkers contribute to job satisfaction). Based on the situational factors, a leader can select the most appropriate of the following leadership styles. The leader provides high structure. Directive leadership is appropriate when subordinates want authoritarian leadership, have an external locus of control, and have low ability

The leader provides high consideration. Supportive leadership is appropriate when subordinates do not want authoritarian leadership, have an internal locus of control, and have high ability. The leader considers employee input when making decisions. Participative leadership is appropriate when subordinates want to be involved, have an internal locus of control, and have high ability. The leader sets difficult but achievable goals, expects subordinates to perform at their highest level, and rewards them for doing so.

In essence, the leader provides both high structure and high consideration. Achievement-oriented leadership is also appropriate when the task is simple.