In today's business environment, businesses must be able to adapt and develop strategies that allow them to remain as competitive as possible within the markets they serve. Leaders within these companies must be able to fully understand the most effective leadership style required depending on the situation at hand. One style may be effective in one situation while another style may need to be used in another. In this era of environmental dynamism, organizations have had to refocus on organizational capabilities to gain competitive advantage in such an environment. This refocusing has led to a breakdown in routines and involves a change in organizational norms and required knowledge. James Clawson discusses the three levels of leadership in his book titled “Third Level Leadership: Going Below the Surface.” This article will discuss some issues that may arise within companies and which leadership styles might be most effective for different situations based on Clawson's text. Top-level leadership According to Clawson (2012), “Top-level leadership, leadership that focuses primarily on influencing visible behavior, has been the dominant leadership model throughout history” (Clawson, p 211). level most likely began with the hunter-gatherer era and has remained the primary leadership style in organizations to this day. In first-level leadership, a person is told what to do and he or she does it. goal is achieved, rewards are offered, and if not, the employee can expect some type of discipline. Some people also see first-level leadership as more moral because some feel uncomfortable influencing their own mind or personality and they also consider it more ethical to focus more on physical behavior… middle of paper… today, It is crucial to use appropriate leadership styles. Different types of circumstances require different leadership styles. Clawson's three levels of leadership are very effective depending on the situation the company is in. It is important to first understand the conditions you are experiencing and then use the most effective leadership style for the situation. References Clawson, J. G. (2012). Third Level Leadership, 5th Edition. 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, page10-20.