Leadership Style and Sales Performance: A Test of the Situational Leadership® Model

Abstract

This paper presents an empirical examination of the Situational Leadership® Model (SLM), which is used extensively in management training programs by major corporations and government agencies. Data from 675 salespersons and 41 branch managers in the insurance industry did not support the hypothesis that leadership styles prescribed by the SLM were associated with superior sales performance. The four styles described by the SLM were also tested, with an exploratory regression, in terms of their relative effects on sales performance. Agents working for managers who preferred the high-task, low-relationship style performed better than did agents working for managers who preferred other styles. Some implications for future research and practice are discussed.