Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In what scenario does Fiedler suggest that a psychologically close manager is most suitable?

1. In very unfavorable situations

2. In moderately favorable situations

3. In highly favorable situations

4. In crisis situations

The correct answer is: In moderately favorable situations

Fiedler's Contingency Theory of Leadership suggests that the effectiveness of a leader is contingent upon the interplay between their leadership style and the context or situation they are in. A psychologically close manager typically refers to a leader who emphasizes interpersonal relationships and emotional connections with their team. In moderately favorable situations, the challenges faced are not too extreme but still require some level of guidance and supportive leadership. A psychologically close manager can effectively navigate these scenarios by fostering collaboration, building trust, and motivating team members. This promotes a positive team environment, which is crucial when conditions are not entirely favorable but still allow for some level of constructive interaction and influence. In situations that are very unfavorable, the emphasis might need to shift towards more task-oriented leadership, which focuses on structure and getting results despite the lack of cooperation. When the situation is highly favorable, a psychologically close manager can also be successful, but other leadership styles might be more effective as team members may require less direct support and more autonomy. Crisis situations typically demand a more directive approach, as quick decision-making and control are essential in navigating emergencies effectively. Thus, the choice that best aligns with Fiedler’s theory regarding when a psychologically close manager is most suitable is in moderately favorable situations, where their relational approach