According to the path-goal leadership theory, the two contingency factors that make leadership behaviors more effective are the environmental factors and the characteristics of employees.
Path goal theory was evolved by Robert House in the year 1971. It states the behavior of an employer is accidental on the basis of the characteristics of their employees.
The two factors impacting the leadership goals under path-goal theory are the environmental factors which include the kind of leader's behavior so that the results from the employees can be enhanced and the employee's characteristics include the performance, motivation, and satisfaction among employees due to leader's behavior.
Therefore, the employee characteristics and the environment-related factors are much affecting the behavior of leaders under the path-goal theory.
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