Association of Chartered Certified Accountants (ACCA) Certification Practice Test

According to Fiedler, what does the effectiveness of a leader depend on?

1. Leadership style and employee feedback

2. Leadership style and the situation

3. Charisma and communication skills

4. Team dynamics and organizational goals

The correct answer is: Leadership style and the situation

Fiedler's Contingency Model posits that a leader's effectiveness is contingent upon the interaction between their leadership style and the situation in which they operate. This theory emphasizes that there is no universal best style of leadership; instead, the success of a leader is highly dependent on the context and the specific circumstances they face. The leadership style refers to the characteristic and habitual patterns that a leader employs in managing their team, such as relationship-oriented or task-oriented approaches. On the other hand, the situation encompasses various factors, including the nature of the task, the relationships among team members, and the level of authority the leader has. For effective leadership, Fiedler argues that the alignment between a leader's style and the context in which they lead is crucial. For instance, a relationship-oriented leader may thrive in a supportive and collaborative environment, while a task-oriented leader might excel in situations where specific directives and structure are paramount. The other choices, while they each touch on aspects of leadership, do not encapsulate the core of Fiedler's theory. Employee feedback, charisma, communication skills, and team dynamics are certainly valuable components of effective leadership, but they do not address the pivotal role that the interaction between leadership style and situational context plays