It is important to have that particular knowledge which a situation demands

In today’s highly complex globalized world, all the functions being performed by organizations and bureaucracies are highly diversified and requires specific knowledge and training to deal with specific situations. 

This is where the Leadership of Function concept of MP Follett comes into play. The concept says that with changing circumstances the work which is required to be done may also change and therefore man with largest knowledge of the situation, who understands its total significance and who can see it through should be made incharge as any other person who is not acquainted to the conditions may not lead effectively. 

For eg. The appointment of an inexperienced IAS officer to the Maoist insurgency affected area may produce undesirable results as he is not aware of the local conditions and has no idea of how volatile the situation may be.

Now a days organization all over the World are becoming more and more creative and innovative employing knowledge based methods and techniques. So in these organizations specialists are more effective than Generalists. If any leader who is not aware of complete facts and picture may issue orders which may cause damage or loss to the organization.

Hence situational knowledge in leader is must and traditional approach has become partially obsolete.