Yes Leadership is situational! A good leader should know when to exercise his leadership function and authority and when not to, when to act as a leader and when not to.
Let us take for example organizational activity such as foundation day of the organization or Christmas party. Who is the right person to lead in the preparation of this activity? Does the leader of the organization need to be at the forefront of this activity?
Situational leadership will tell us that during this kind of organizational activity the leader may or may not be at the forefront. He can even choose to simply maintain a low profile, be an observer and let his subordinates do all the preparations.
There are many other situations which will call for a leader to take action and lead by example. For instance in the achievement of organizational objectives, in matters of discipline, leadership by example and so forth.
A leader must fully grasp the usefulness of situational Leadership. For the simple reason that it can help him effectively function as a leader and it surely will strengthen his image as a leader in his organization. - Marino J. Dasmarinas