An important element in Hersey and Blanchard's theory deals with organizational maturity, a financial term indicating the final date for payment of principal and interest.

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Hersey and Blanchard's theory of situational leadership does not involve the financial term of organizational maturity, but instead focuses on the readiness level and development stage of the followers in relation to the leadership style needed.

An Important Element in Hersey and Blanchard's Theory Deals with Organizational