The ability, experience, and independence of subordinates; the clarity of organizational plans and formalization of rules; and routineness and availability of performance feedback can serve as effective substitutes for leadership.

This statement is true. When subordinates have the necessary skills and experience, organizational plans are clear and rules are formalized, and performance feedback is routine and available, it becomes less necessary for a leader to provide direction and guidance. Subordinates can, to some extent, self-manage and operate independently. This does not mean that leadership is unnecessary, but rather that it can be supplemented by well-designed organizational systems and practices.