Final answer:
The Path-Goal Theory of leadership is the one that emphasizes the leader's style, the work situation, and setting goals for employees to enhance performance and satisfaction.
Step-by-step explanation:
The theory that focuses on the leader's style, the work situation, and particularly the importance of setting goals for employees is the Path-Goal Theory of leadership. This theory suggests that a leader's behavior is contingent on the satisfaction, motivation, and performance of her or his subordinates. The Path-Goal Theory is built around directing, supporting, participating, and achievement-oriented leadership styles, and the central objective is to enhance employee performance and satisfaction by focusing on employee motivation.