Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In what situation would a Psychologically distant manager (PDM) be more suitable?

1. In a moderately favourable situation

2. In either a highly favourable or highly unfavourable situation

3. In a slightly favourable situation

4. In a neutral situation

The correct answer is: In either a highly favourable or highly unfavourable situation

A Psychologically Distant Manager (PDM) is more suitable in situations where there are extreme conditions—specifically, highly favourable or highly unfavourable environments. In these contexts, the PDM’s ability to remain detached allows for a more objective evaluation of the situation, free from the biases or emotional attachments that may cloud judgment. In highly favourable situations, the PDM can ensure that the success is sustained through strategic oversight rather than being overly involved, which might lead to complacency. Conversely, in highly unfavourable conditions, the PDM's distance can help in making tough decisions that may require a rational and unemotional approach to problem-solving, enabling the manager to pivot strategies without being influenced by the immediate distress or negativity. Moderately favourable, slightly favourable, or neutral situations might call for a more engaged and empathetic management style, where understanding team dynamics and immediate challenges is crucial for driving morale and performance. Thus, the distinct advantage of a PDM shines in more extreme scenarios where objectivity can facilitate better decision-making and increased effectiveness.