Situational Theory
(Hersey and Blanchard)
This theory looks into the characteristics of people working under a leader to find out what kind of behaviour that leader has. The whole point of this theory was to show that different leadership styles are needed for different employers. If skills are lower, then a different leadership style will need to be undertaken than if the employees were very skilful and able to get on with most tasks themselves.
The above diagram sums up this theory.