Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is Fiedler credited with developing?

1. The hierarchical model of leadership

2. The contingency theory of leadership

3. The trait theory of leadership

4. The team leadership model

The correct answer is: The contingency theory of leadership

Fiedler is credited with developing the contingency theory of leadership, which posits that the effectiveness of a leader is contingent upon the interplay between their leadership style and the specific situational variables they face. This theory emphasizes that there is no single best way to lead, as effective leadership can vary depending on the context, including the nature of the task, the workgroup dynamics, and the leader's relationship with their followers. Fiedler identified two primary leadership styles: task-oriented and relationship-oriented. He proposed that task-oriented leaders perform well in situations that are either very favorable or very unfavorable, while relationship-oriented leaders thrive in moderately favorable situations. This framework is significant because it shifts the focus from purely individual traits or fixed styles of leadership to the understanding that effective leadership is dynamic and context-dependent. In contrast, the hierarchical model of leadership focuses on structured levels of authority and roles, the trait theory emphasizes inherent qualities of leaders irrespective of their situational context, and the team leadership model considers the processes and team dynamics rather than the individual leader's style alone. Therefore, the contingency theory stands out as it provides a more nuanced approach to understanding leadership effectiveness across different environments.