The Path-Goal Theory is based on the expectancy theory, which proposes that the level motivation necessary to increase effort will increase as the possibility of actual performance and the probability of an expected outcome increase. The model states that leader behavior is acceptable when employees view it as a source of satisfaction. These styles are similar in content to the Situational Leadership theory styles mentioned earlier, though for differing reasons. With Directive leadership managers provide guidance, schedule work, and maintain standards of performance. Supportive leaders show concern for the well being of employees, are friendly, approachable, and treat workers are equals.
Participative leaders are consultative and seriously consider employee's ideas when making decision.
Achievement-oriented leaders set challenging goals, emphasize excellence, and demonstrate confidence in their employees. Situational theories, each a convincing argument for their various style, have received criticism about their consistency and, as of yet, have not yet received strong empirical support. These situational models have strong intuitive appeal for practicing managers because they provide specific yet flexible guidelines for dealing with employees in different situations. They allow managers to conceptualize and manipulate leadership styles according to the task or their position in the company, employee's abilities and expectations, or the readiness level of the employee. For managers it is important to recognize that no one style of leadership is appropriate for every employee or situation.