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The Path-Goal theory posits that a good leader is one who clearly demonstrates to his or her subordinates the behavior that will be rewarded and, also is prepared to hand out those rewards. The two situational factors that Path-Goal focuses on are the environment of the organization and the personal characteristics of the subordinates. Assume you are managing a group of very competent, experienced employees. They are doing something routine, such as filling out expense reports, and there is even a detailed SOP for this. Which type of leadership style would you recommend and why?

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