Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What theory did F E Fiedler develop?

1. The behavioral theory of management

2. The contingency theory of management

3. The systems theory of management

4. The transformational leadership theory

The correct answer is: The contingency theory of management

F. E. Fiedler is renowned for developing the contingency theory of management, which emphasizes that there is no single best way to lead an organization. Instead, the effectiveness of a leader's style is contingent upon various situational factors, including the nature of the task and the characteristics of the team members. Fiedler's model introduces the concept of leader-member relations, task structure, and position power as critical variables that influence leadership effectiveness. This framework allows organizations to understand that effective leadership is situationally dependent, making it necessary for leaders to adapt their styles according to different challenges and contexts they face. In contrast, the other theories mentioned focus on different aspects of management and leadership. The behavioral theory centers around specific behaviors and actions of leaders rather than situational variables. The systems theory looks at organizations as complex systems with interrelated parts. The transformational leadership theory focuses on inspiring and motivating followers to achieve higher levels of performance and personal development. All these theories differ from Fiedler's contingency theory, which uniquely posits that adaptability to context is key to effective leadership.