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Leadership Styles and Theories

4

Situational Styles

Directing coaching supporting delegating

4

Transformational I's

Inspire stimulate consider idealize

2

Grid Axes

Concern for people vs concern for production

Situational Leadership (Hersey-Blanchard)

Situational Leadership adapts to the FOLLOWER's readiness, not the leader's preference. Readiness is a combination of ability (can they do it?) and willingness (do they want to?). The leader assesses the follower and then selects one of four styles.

S1

Directing

Low ability, low willingness

S2

Coaching

Low ability, high willingness

S3

Supporting

High ability, low willingness

S4

Delegating

High ability, high willingness

Transformational vs Transactional

Transformational

Inspires followers to exceed expectations and achieve more than they thought possible. Focuses on vision, purpose, and development.

I Idealized Influence (role model)

I Inspirational Motivation (shared vision)

I Intellectual Stimulation (challenge assumptions)

I Individualized Consideration (personal development)

Transactional

Based on exchange. Performance for reward. Error correction through management by exception. Maintains current operations but does not drive transformation.

Contingent reward (clear expectations)

Active management by exception (monitor deviations)

Passive management by exception (intervene after failure)

Servant Leadership and Path-Goal Theory

Servant Leadership

The leader’s primary role is to serve followers. Focuses on growth, well-being, and empowerment of team members. SHRM strongly favors this philosophy.

Path-Goal Theory

The leader clears obstacles and provides rewards along the path to the goal. Four styles (directive, supportive, participative, achievement-oriented) match the follower and the task.

which style fits each scenario?

Practice leadership scenario questions and match theories to situations

Practice Leadership Questions

Exam Traps

Situational Leadership adapts to the FOLLOWER, not the leader

Hersey and Blanchard designed the model around follower readiness (ability and willingness). A leader must diagnose the follower first, then select the style that matches. The exam will present a scenario and ask which style fits. Look at the follower, not the leader.

SHRM favors transformational and servant leadership

When the exam asks which approach "best develops employees" or "creates lasting organizational change," the answer is almost always transformational or servant leadership. Transactional leadership (reward and punishment) maintains the status quo but does not inspire growth.

The "best" leadership style is the one that develops others

Unless the scenario describes a crisis requiring directive action, SHRM wants leaders who empower, develop, and serve their teams. If two answer choices are close, pick the one that emphasizes developing the follower over controlling the outcome.

Follower First

Situational Leadership starts with the FOLLOWER. Assess their readiness. Then match your style. Never start with your preference.

Transformational Wins

When the exam asks about lasting change and development, transformational leadership is almost always the best answer.

1
Directing

"Turn left in 200 feet." Step-by-step instructions for someone who does not know the area at all. New employee, unfamiliar task, high supervision needed.

2
Coaching

"Turn left here. The highway is faster but has tolls, so I chose this route." You explain the what AND the why. The person is learning but still needs guidance.

3
Supporting

"Which route do you prefer? I can help if you get lost." The person knows the roads. You are there as a resource, not a director. They need encouragement, not instructions.

4
Delegating

"You know the way. See you at the destination." The person is experienced and motivated. You trust them completely. Checking in too often would actually be counterproductive.

GPS modes = leadership modes.
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Reviewed by Sarah L., PrepSolution Content Editor, HR
Sources verified against SHRM 2026 standards
Updated May 2026