Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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In Fiedler's approach to leadership, what does effectiveness depend on?

Group consensus and communication
Leadership style and situational favorableness
Employee satisfaction and morale
Training and development programs

The correct answer is: Leadership style and situational favorableness

In Fiedler's approach to leadership, effectiveness hinges on the interplay between a leader's style and the favorableness of the situation. This model posits that a leader’s effectiveness is influenced by whether their leadership style aligns with the characteristics of the task environment they are operating in. Fiedler identified two primary leadership styles: task-oriented and relationship-oriented. When the situational favorableness is high—meaning the leader possesses good relations with group members, the task is structured, and the leader has positional power—task-oriented leaders tend to perform better. Conversely, in less favorable situations, relationship-oriented leaders can be more effective. The core idea is that the effectiveness of leadership is contingent upon finding the right match between a leader’s style and the specifics of the situation they are in. Understanding this dynamic can greatly enhance leadership effectiveness in various organizational contexts.