Path-goal theory states that employee performance and satisfaction are likely to be positively influenced when the leader chooses a leadership style that compensates for shortcomings in either the employee or the work setting.

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Path-goal theory emphasizes the importance of the leader's ability to adapt their leadership style to achieve goals and compensate for any deficiencies in the employee or work setting. This theory suggests that effective leadership will increase employee motivation, satisfaction, and performance by creating a clear path to achieve their goals and addressing any obstacles that may arise. Therefore, choosing a leadership style that compensates for such shortcomings is likely to improve employee performance and satisfaction.

Path-Goal Theory States That Employee Performance and Satisfaction Are Likely