1. Followers theory
  2. Trait theory
  3. Situational theory
  4. Managerial grid

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Answer: Option 3

Leadership theory which explains that a leader is strongly affected by the situation in which he works is Situational theory. The situational leadership theory refers to those leaders who adopt different leadership styles according to the situation and the development level of their team members. It is an effective way of leadership because it adapts to the team's needs and sets a beneficial balance for the whole organization.

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