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

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Path-goal theory emphasizes that a leader's role is to match an employee's abilities and characteristics with the demands of the workplace, and to provide the necessary support and guidance to help the employee achieve their goals. The leader's actions, such as providing guidance, support, and rewards, can help compensate for shortcomings in either the employee or the work setting, leading to improved performance and job satisfaction.

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