The theory argues that leaders will have to engage in different types of leadership behavior depending on the nature and the demands of a particular situation.
The theory proposes two contingency variables, such as environment and follower characteristics, that moderate the leader behavior-outcome relationship.
Effective leaders clarify the path to help their followers achieve goals and make the journey easier by reducing roadblocks and pitfalls.
[8] House (1971) refers to Rizzo (1970), stating that a leader initiating structure increases the path instrumentality for subordinates by decreasing role ambiguity.
Also, he says that a leader who is initiating structure and consideration will have different effects depending on whether the task is satisfying or unsatisfying to the subordinate and whether the task-role demands are clear or ambiguous.
Larson and LaFasto in their 1989 book "TeamWork" place a clear & elevating goal at the forefront of the necessary components for a successful team.
The elevating factor of goal setting brings about a sense of urgency, causes a team to lose track of time (relates to the idea of "flow" in the field of positive psychology), and causes the rate of communication to increase, for example, players calling one another in the evening, outside the sport context, to talk about today's practice or tomorrow's game.