In today's business environment, businesses must be able to adapt and develop strategies that allow them to remain as competitive as possible in the markets they serve . Leaders in these companies must be able to fully understand the most effective leadership style required depending on the situation. One style may be effective in one situation while another style may need to be used in another. In an era of environmental dynamism, organizations have had to refocus on their organizational capabilities in order to obtain a competitive advantage in such an environment. This refocusing has led to a breakdown in routines and involves a change in organizational standards and required knowledge. James Clawson discusses the three levels of leadership in his book titled "Level Three Leadership: Getting Below the Surface." This article will discuss some issues that can arise within businesses and what leadership styles can be most effective in different situations, based on Clawson's text. Level 1 Leadership According to Clawson (2012), “Level 1 leadership, leadership that focuses primarily on influencing visible behaviors, has been the dominant leadership model throughout history” (Clawson, p 211) . Level 1 leadership most likely began with the hunter-gatherer era and has remained the primary leadership style in organizations until now. At the first level of leadership, a person is told what to do and does it. If the goal is achieved, rewards are offered and if not, the employee can expect some form of discipline. Some people also view first-level leadership as more moral because others are uncomfortable influencing their minds or personalities and also consider it more ethical to focus more on physical behavior. ...... middle of paper ...... today it is imperative to use appropriate leadership styles. Different types of circumstances call for different leadership styles. Clawson's three levels of leadership are very effective depending on the situation the company finds itself in. It is important to first understand the conditions that are occurring and then employ the most effective leadership style for the situation. ReferencesClawson, JG (2012). Level Three Leadership, 5th ed. Upper Saddle River, NJ: Prentice Hall/Pearson. Nijssen, M.; Paauwe, J. HRM in turbulent times: how to achieve organizational agility? International Journal of Human Resource Management. September 2012, Vol. 23 Issue 16, p3315-3335.Torres, David L. AGILity and the organization: sensemaking for organizational leadership. SAM Advanced Management Journal (07497075). Summer2013, Vol. 78 Number 3, p.10-20.