Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In Fiedler’s approach, what is the significance of the situational context?

1. It dictates the personal lifestyle of the leader

2. It influences the manager's level of authority

3. It determines the required leadership style for effectiveness

4. It affects communication preferences within the team

The correct answer is: It determines the required leadership style for effectiveness

In Fiedler’s contingency model of leadership, situational context plays a crucial role in determining the most effective leadership style for a given situation. This approach emphasizes that there is no one-size-fits-all leadership style; instead, the effectiveness of a leader depends on the compatibility between their leadership style and the situational context they are in. The situational context involves factors such as the nature of the task, the relationships between team members and the leader, and the leader’s position power. Fiedler identified two primary leadership styles: task-oriented and relationship-oriented. Depending on the situational variables—such as whether team members are highly skilled or if clear direction is needed—different styles may yield better results. When the context is favorable, a task-oriented approach can be effective, while a relationship-oriented style may work better in less favorable circumstances. Recognizing that the environment significantly shapes leadership effectiveness highlights the importance of adapting one’s leadership approach to fit specific situations, thereby impacting overall team performance and effectiveness.