Leaderhip Chapter 7 - Path-Goal Theory

Path–goal theory is about how leaders motivate subordinates to accomplish designated goals. Drawing heavily from research on what motivates employees, path–goal theory first appeared in the leadership literature in the early 1970s in the works of Evans (1970), House (1971), House and Dessler (1974), and House and Mitchell (1974). The stated goal of this leadership theory is to enhance employee performance and employee satisfaction by focusing on employee motivation.

In contrast to the situational approach, which suggests that a leader must adapt to the development level of subordinates (see Chapter 5), and unlike contingency theory, which emphasizes the match between the leader’s style and specific situational variables (see Chapter 6), path–goal theory emphasizes the relationship between the leader’s style and the characteristics of the subordinates and the work setting. The underlying assumption of path–goal theory is derived from expectancy theory, which suggests that subordinates will be motivated if they think they are capable of performing their work, if they believe their efforts will result in a certain outcome, and if they believe that the payoffs for doing their work are worthwhile.

For the leader, the challenge is to use a leadership style that best meets subordinates’ motivational needs. This is done by choosing behaviors that complement or supplement what is missing in the work setting. Leaders try to enhance subordinates’ goal attainment by providing information or rewards in the work environment (Indvik, 1986); leaders provide subordinates with the elements they think subordinates need to reach their goals.