Situational Leadership Theory: Definition, Styles and Maturity Levels | Indeed.com

Situational Leadership Theory: Definition, Styles and Maturity Levels

Updated September 30, 2022

Leadership style plays a vital role in every business, affecting both employee performance and operational efficiency. Situational leadership theory suggests leadership styles go through stages as employees develop and cultivate their workplace skills. In other words, situational leaders shift their leadership style to meet company and employee needs. In this article, we discuss what situational leadership theory is and how you can use it to guide your employees.
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What is situational leadership theory?

Situational leadership theory is a strategy that designates a leadership style to a given situation based on a number of factors. Situational leaders adapt their leadership styles according to the competency and commitment level of employees. Situational leadership is a flexible style designed to maximize employee potential while meeting corporate deadlines or milestones. Situational leaders strive to:
  • Drive results by answering the what and the how of a project
  • Develop people and appropriate workgroups
  • Establish relationships and motivate employees
  • Recognize when to adapt leadership styles over time
Related: 10 Common Leadership Styles (Plus How To Find Your Own)

Situational leadership theory leadership styles

In the 1980s, Ken Blanchard and Paul Hershey developed a theory on how the adaptation of a leadership style to an employee's potential is more effective than trying to adapt employees to fixed leadership styles. Based on their work, the two men identified four leadership styles that can be matched to an employee's ability and commitment.The four situational leadership styles developed by Blanchard and Hershey are:
  • Telling and directing (S1): In this style of leadership, the leader provides support, specific guidance and close supervision. Telling and directing leaders make decisions and direct actions through communication and interaction. These leaders are closely involved and use a top-down approach, meaning employees follow the directions that have been given to them.
  • Selling and coaching (S2): Considered the explaining and persuading style, selling and coaching leaders accept input from group members and encourage them to submit their own ideas and suggestions. These leaders effectively sell their concept to the group and aim to recruit their cooperation through debate and collaboration, although the final decision belongs to the leader.
  • Participating and supporting (S3): Participating and supporting leaders offer less direction and leave the decisions to others. Although they may oversee operations, participating leaders trust the group or member's ability and expect them to make the appropriate choices.
  • Delegating (S4): These leaders tend to limit participation and leave most of the responsibilities to the group. Delegating leaders may be consulted now and then, but they primarily pass decision-making and project direction to the group members.
Related: 10 Ways To Build Effective Leadership Behaviors

Situational leadership theory maturity levels

The situational leadership theory matches leadership style to a group member's maturity level. Maturity is defined as the group member's readiness level based on their knowledge of the role as well as their competence to perform a given task.Maturity level is affected by:
  • Time on the job
  • Work experience
  • Enthusiasm
  • Job confidence
Maturity levels follow a sequence of events:
  • Maturity or readiness level 1 (M1): At this level, members may be new to the role and have not yet gained the knowledge or skills to complete a task. Members at this level may need motivation and purpose to fulfill their role.
  • Maturity or readiness level 2 (M2): A level two maturity indicates that employees are eager and willing to perform their role, but may require additional supervision.
  • Maturity or readiness level 3 (M3): Group members in this category generally possess higher skill levels and competence. However, the responsibility for decision-making remains with the situational leader.
  • Maturity or readiness level 4 (M4): In the highest maturity level, members are willing and able to complete tasks independently from the leader's input.
For example, consider a parent raising an infant. In the beginning, the child has all of their needs met, doesn't make any of their own decisions and completely relies on their parents. As the child grows and learns to walk and talk, their parents take a less active role and consider the child's input in decision-making. Once the child reaches a certain maturity level, a parent shifts responsibilities to the child, who still seeks advice or permission from the parents. Once the child reaches adulthood, decision-making and responsibility are solely theirs, although they might consult their parents from time to time.

Development levels

The theory of situational leadership has since expanded to consider the development level paired with the maturity level of group members in relation to tasks. Situational leaders can accelerate the development level by raising expectations and encouraging employees to cultivate their abilities and become self-motivated. The development level is determined by low, medium or high competencies or commitment and is assigned one of four designations:
  • Development level 1 (D1): Employee has low competence but high commitment.
  • Development level 2 (D2): Employee has some competence but low commitment.
  • Development level 3 (D3): Employee has high competence and variable commitment.
  • Development level 4 (D4): Employee has high competence and high commitment.
Read more: 10 Key Areas of Development for Employees (With Examples and Tips)

How to match leadership style with maturity level

In a situational leadership model, leadership style is matched to member maturity and development level in order to provide the most effective leadership. When matching a leadership style to a maturity or development level, situational leaders assess the situation to adjust and adapt their leadership style to meet the needs of an individual or workgroup. This approach helps to maintain performance and produce results. As an employee improves and gains confidence, situational leaders alter their style to meet the new circumstances.Effective leaders recognize an employee's job growth and match their leadership styles as the employee advances through four primary maturity levels:
  1. Determine the quality of an employee's experience. If an employee is inexperienced, they will have more success with a leader who can oversee their work as they learn and mature. The initial employee-employer relationship is designated as a low maturity level (M1) paired with a telling and directing (S1) leadership style. For example, Robin is new to his role and lacks job experience. Robin is assigned to a project role and his actions are closely monitored by the leader to ensure he's following directions.
  2. Monitor employees for growth or changes. As employees mature, leaders should act in a supportive rather than authoritative role. At this stage, employees achieve medium maturity level (M2) and perform well when matched with the selling and coaching (S2) leadership style. For example, Robin has been at his job for six months and knows his duties well. Robin is still unsure about some tasks and seeks support from his leader for direction or motivation.
  3. Allow the employee to gain more input into their job roles. Once an employee reaches medium maturity level 3 (M3), the participating and supporting (S3) leadership style allows the employee greater autonomy and independence. For example, Robin now takes an active role in generating ideas for projects, budget allocations and marketing strategies. While Robin's leader makes the final decision, Robin's opinions and ideas are always considered.
  4. Give the highest maturity level when the employee has demonstrated high ski**ll, achieved ample experience and is motivated to work independently.** At this maturity level (M4), the employee knows their job and what is expected of them. This employee requires little supervision but has maximum input under a delegating (S4) leadership. For example, now that he's been in the workgroup for some time, Robin knows what his responsibilities are and has learned how to prioritize. Robin is the decision-maker, and although he consults with leadership now and then, the leader is confident in Robin's abilities to complete what he started.
Related: 10 Ideas To Improve Employee Engagement
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Qualities of an effective situational leader

The necessary skills of a situational leader include adaptability to changing conditions and awareness of their employees' capabilities. Here are a few of the qualities that make effective situational leaders:
  • Insight: Situational leaders are most effective when they understand the abilities of the employee and the complexity of a task. Good leaders assess situations and people in order to determine the best leadership approach that encourages employee development.
  • Flexibility: Situational leaders consider interpersonal and social relationships as they adjust their leadership style. Good leaders understand there is no perfect formula, and that they can adapt their style to changing situations. For example, groups that contain highly-skilled employees but that lack efficiency may fare better with a leadership style that provides more structure yet still lets members work independently.
  • Trust: Effective situational leaders build relationships with compassion and support. Good leaders help employees feel part of the decision-making process and motivate them to succeed.
  • Problem-solving: Situational leaders oversee several people and mechanisms of a project or group and must be able to assess a situation or problem and find a solution. Problem-solving skills also factor in when recognizing when to shift leadership styles.
  • Coaching: Situational leaders apply coaching skills in order to nurture and support employees as they move through their development and maturity stages. Effective situational leaders encourage employees to increase their skill levels and motivate them by elevating their enthusiasm.
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