The correct answer is option B, “Environmental factors,” because, according to House’s revised path-goal theory, a leader’s style should vary depending on the environmental factors that influence the work setting. House’s theory is a leadership model that emphasizes the role of the leader in facilitating their subordinates’ achievement of work goals and objectives.

It suggests that leaders should adjust their leadership styles to match the situational characteristics and environmental conditions that impact their team’s performance. Let’s explore in detail why “environmental factors” are the correct answer and why the other options are not as appropriate:

Why “Environmental Factors” (Option B) are Correct:

House’s revised path-goal theory posits that effective leadership requires a leader to adapt their leadership style to the unique environmental factors and situational conditions within an organization.

Environmental factors can include aspects such as the nature of the task, the external work environment, and the specific challenges and opportunities presented by the surroundings. Here are some key reasons why environmental factors are a central element of this theory:

1. Task Complexity:

The complexity of tasks and work assignments varies across different environmental contexts. In complex and uncertain environments, leaders may need to adopt a more directive or supportive style to help employees navigate challenges. In simpler environments, a more hands-off or participative style may be appropriate.

2. External Demands:

The external environment can present its own set of demands. Leaders may need to be more directive when there are external pressures or regulations that require strict compliance. On the other hand, in more flexible and open environments, leaders might emphasize a participative or achievement-oriented approach.

3. Resource Availability:

Resource constraints or abundance in the external environment can also influence leadership style. When resources are limited, leaders may need to be more supportive and offer assistance in problem-solving. In resource-rich environments, they may take on a more participative or delegative role.

4. Organizational Culture:

The cultural and social context within the organization is part of the environmental factors. Leadership style should align with the culture and values of the organization. In some cultures, a more directive approach may be expected, while in others, a participative or transformational style may be preferred.

5. Technology and Industry:

The technology and industry in which an organization operates can significantly impact leadership style. High-tech industries may require leaders to be more supportive of innovation, while traditional industries may need a more structured and directive leadership approach.

By considering and adapting to these environmental factors, leaders can better guide their teams and help them overcome challenges while capitalizing on opportunities. The essence of path-goal theory is to remove obstacles for employees and make their path to success clearer and more achievable by adjusting leadership style to the environment.

Why the Other Options are Not Correct:

A. Positional Power:

Positional power refers to the authority and influence that a leader holds within an organization. While it is an important aspect of leadership, House’s path-goal theory focuses on the need to adapt leadership style based on the situational and environmental factors, rather than the leader’s power or position.

C. Situational Control:

Situational control is a concept associated with the situational leadership model, not House’s path-goal theory. While situational control is relevant in some leadership models, it is not the primary focus of path-goal theory, which centers on environmental factors and their impact on leadership style.

D. Organizational Readiness:

Organizational readiness is a concept associated with change management and organizational development. It is not a central element of House’s path-goal theory, which emphasizes the need to align leadership style with the specific environmental factors and situational characteristics, rather than the organization’s readiness for change.

E. Leader-Member Relations:

Leader-member relations are an important aspect of leadership, particularly in the context of leader-member exchange (LMX) theory. While leader-member relations play a role in leadership dynamics, House’s path-goal theory specifically emphasizes the role of environmental factors in shaping leadership style, making this option less directly relevant to the theory.

In conclusion, House’s revised path-goal theory underscores the importance of adapting leadership style to environmental factors and situational conditions within an organization.

Effective leadership, according to this theory, requires leaders to assess and respond to the unique challenges and opportunities presented by the external environment and the nature of the tasks at hand. By doing so, leaders can enhance their team’s motivation and performance in different contexts.