Review of the Path-Goal Theory

During a research a few years ago, we worked on a business with traditional organisational culture that went through an organisational restructure. To see how the theory can work in practise, the path-goal theory will be applied to this example. The organisations goals were a major cut in expenditures and to reach higher customer satisfaction by moving the decision making closer to the end user. The restructuring involved fusion of 5 large departments into one minor, and resulted in a more level organisational structure. The implementation process started out with the CEO formulating an action plan and preparations was made on management level before the execution took place. When the preparation was completed and the restructuring ready to be implement; a meeting was hold to inform the affected subordinates. Subsequently, the five divisions were closed. Subordinates in the divisions were relocated to new positions; some of them in the new department. References Evans, M. G. 1996. R. J. House’s “A Path Goal Theory of Leader Effectiveness”. Leadership Quarterly 7: 306-309. House, R. J. 1971. A path-goal theory of leader effectiveness_. Administrative Science Leadership_ Review 16: 321-339. House, R. J. and Mitchell, R. R. 1974. Path-goal theory of leadership. Journal of Contemporary Business 3: 81-97. House, J. R. 1996. Path-goal theory of leadership: Lessons, legacy and reformulated theory. Leadership Quarterly 7 (3): 323-352. Podsakoff, P.M, MacKenzie, S. B. and Ahearne, M. 1995. Searching for a Needle in a Haystack: Trying to Identify the Illusive Moderators of Leadership Behaviors. Journal of Management 21: 423-470. Robbins, S., Judge, T., Millett, B., and Waters-Marsh, T. 2008. Organisational Behaviour (5th ed.). Frenchs Forest, NSW: Pearson Education Australia. Schriesheim C. A. and Neider, L. 1996. Path-Goal Leadership Theory: The Long and Winding Road. Leadership Quatrerly 7: 317-321. Villa, J. R., Howell,

References: Evans, M. G. 1996. R. J. House’s “A Path Goal Theory of Leader Effectiveness”. Leadership Quarterly 7: 306-309 House, R. J. 1971. A path-goal theory of leader effectiveness_. Administrative Science Leadership_ Review 16: 321-339 House, R. J. and Mitchell, R. R. 1974. Path-goal theory of leadership. Journal of Contemporary Business 3: 81-97 House, J. R. 1996. Path-goal theory of leadership: Lessons, legacy and reformulated theory. Leadership Quarterly 7 (3): 323-352 Podsakoff, P.M, MacKenzie, S. B. and Ahearne, M. 1995. Searching for a Needle in a Haystack: Trying to Identify the Illusive Moderators of Leadership Behaviors Robbins, S., Judge, T., Millett, B., and Waters-Marsh, T. 2008. Organisational Behaviour (5th ed.). Frenchs Forest, NSW: Pearson Education Australia Schriesheim C. A. and Neider, L. 1996. Path-Goal Leadership Theory: The Long and Winding Road. Leadership Quatrerly 7: 317-321 Villa, J. R., Howell, J. P. and Dorfman, P. W. 2003. Problems with Detecting Moderators in Leadership Research Using Moderated Multiple Regression Wofford J. C. and Liska, L. Z. 1993. Path-goal theories of leadership: A meta-analysis. Journal of Management 19 (4): 857-876