Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which approach assumes that leadership effectiveness is based on situational factors?

  1. Trait approach

  2. Functional approach

  3. Situational approach

  4. Behavioural approach

The correct answer is: Situational approach

The situational approach to leadership is grounded in the belief that the effectiveness of a leader is not solely determined by their personal traits or behaviors but is significantly influenced by the context of the situation. This approach posits that different situations require different leadership styles and that an effective leader adapts their approach based on various situational factors such as the task at hand, the team dynamics, the organization’s culture, and the external environment. The situational approach recognizes that there is no single best way to lead; rather, the leader's effectiveness depends on their ability to assess the specific circumstances and modify their behaviors accordingly. This adaptability allows leaders to be more effective in different scenarios by aligning their leadership style with the needs of their team and the demands of the situation. In contrast, other approaches, such as the trait approach, focus on the inherent qualities and characteristics that make an effective leader, suggesting that certain traits can predict leadership success regardless of the situation. The functional approach looks at the roles and tasks leaders undertake, while the behavioral approach emphasizes the actions and behaviors exhibited by leaders rather than the context in which they operate. Therefore, the situational approach is distinct in its emphasis on the interplay between leadership and situational elements, making it the correct choice in this context