The Contingency theory and The Path-Goal theory are two ways through which we can evaluate leadership. The Path-Goal theory operates on the assumption that the effectiveness of leadership depends on what the leader does. A leader uses his skills to exercise influence and change the behavior of his subordinates. The Contingency theory, on the other hand, stresses the idea that leaders are not born instead the environment determines the way decisions are made. The Path-Goal theory explains that the leader maps out a path to be followed by his subordinates (Beach, 2006). This can be done in three different ways. The leader should clarify the path to his juniors. He should then remove obstacles on the path that is drawn and increase motivation to aid in achieving goals.
The Contingency theory asserts that the internal and external environments in which a firm operates influence its decision-making process (Greenleaf, 2002). These environmental factors are called contingency factors. Whereas the Contingency theory emphasizes the different situations, the Path theory stresses the personality of the leader and his ability to motivate and give direction to his staff. The Contingency theory further illustrates that organizations fall into different types of environments. In its explanation, the leader should focus on aligning the employees to make sure good results are achieved (Naughthouse, 2003). The Path theory in its account refers to the leader as the source of power and enthusiasm to the juniors. In this theory, the purpose of the leader revolves around creating a good working environment along the path. In contingency theory, the relationship between the leader and his subordinates is important in decision-making. Other issues include the degree of the roles and the status of the leader i.e. how formal his authority is. The Path-Goal theory on its account clarifies that if the goals are explained, then the path will make sense. Favorable leadership behavior inspires the subordinates.
References
Beach, R. (2006). Leadership and the art of change. Thousand Oaks, CA: Sage Publications.
Greenleaf, R. (2002). Servant Leadership. New York: Paulist Press.
Naughthouse, P. (2003). Leadership theory and practice. Washington DC: Sage Publications.