The path-goal theory of leadership was examined by investigating relationships between leader initiating structure and subordinate satisfaction at two hospital administrative levels. It was hypothesized that at the higher occupational level, for 20 female associate directors, initiating structure would be negatively related to role ambiguity, and positively related to expectancy II and subordinate satisfaction. However, at the lower occupational level, for 20 female head nurses, it was hypothesized that initiating structure would be negatively related to subordinate satisfaction and unrelated to expectancy II. Subjects completed the Supervisory Behavior Description, an instrument adapted to measuring ambiguity, an instrument adapted to measuring expectancy II, and the Job Descriptive Index. The hypotheses were substantiated. A path analysis model was confirmed for associate directors, but not for head nurses, indicating initiating structure was a more important source of role clarification and subordinate satisfaction at the higher occupational level.