* Low competence, high commitment -- these guys don't know wtf they're doing, but they're happy to be there. They need direction and guidance, very hands-on. The strategy here is "I talk, I decide."
* Low competence, low commitment -- these guys don't know enough to work on their own (but maybe aren't totally incompetent), and they're discouraged. They need direction AND encouragement. The strategy here is "We talk, I decide."
* High competence, low commitment -- these guys know what they're doing and can work on their own, but maybe they're bored or intimidated or not confident enough to really take charge of their own schedules. They need encouragement and advice. The strategy here is "We talk, you decide."
* High competence, high commitment -- these are the ones where you say "Here's a problem, go solve it". The risk here is that they'll leave -- they don't need you anymore, right? The strategy here is "I trust you, you decide, but I'm here for advice if you need it."
That's just a really rough overview, but I suggest picking up some management books. Like my boss tells me, "if you're trying, you're one step ahead of the game."
Good luck.