Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is Fiedler well known for in the context of leadership?

1. Emotional intelligence in leadership

2. Path-goal leadership theory

3. Psychologically distant and close managers

4. Transformational vs transactional leadership

The correct answer is: Psychologically distant and close managers

Fiedler is well known for his contributions to understanding leadership styles through his Contingency Theory, which includes the concept of "psychologically distant" and "close" managers. His research highlighted that a leader's effectiveness is significantly influenced by their leadership style and the situational context. Fiedler identified that some leaders are more task-oriented while others are people-oriented, and these styles can impact their effectiveness depending on the situation. Psychologically distant managers tend to adopt a more detached, directive approach to leadership, focusing on tasks and goals without significant emotional involvement. In contrast, psychologically close managers are more engaged with their team members, fostering strong interpersonal relationships and emphasizing team dynamics. Fiedler's theory posits that the situation's favorability determines which style is most effective, indicating that both distance in managerial approach and the relationship with subordinates play crucial roles in leadership effectiveness. This understanding is essential for leaders to adapt their style according to the team's needs and the operational context, enabling them to improve performance and employee satisfaction. Thus, the recognition of Fiedler's research in this area is significant for those studying leadership theories and their applications in various organizational settings.