Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which theory includes a spectrum ranging from autocratic to democratic leadership styles?

1. Transactional leadership

2. Contingency theory

3. Tannenbaum and Schmidt's leadership continuum

4. Functional theory

The correct answer is: Tannenbaum and Schmidt's leadership continuum

The correct answer is Tannenbaum and Schmidt's leadership continuum because this theory specifically illustrates the range of leadership styles available to a leader, from autocratic to democratic. It was developed to help understand how a leader's decision-making style can vary based on the level of control they wish to exert and the amount of freedom they give to their subordinates. The continuum itself suggests that leaders can adjust their style according to the situation at hand, balancing between directing their team in a more authoritarian manner to encouraging participation and input in a collaborative, democratic approach. This approach encapsulates the idea that leadership is not a one-size-fits-all scenario; rather, effective leadership often requires a flexible approach that considers various factors such as the team's capabilities, the nature of the task, and the organizational environment. The other theories do not represent a spectrum of leadership styles in the same way. Transactional leadership focuses on the exchanges between leaders and followers, emphasizing rewards and punishments rather than a continuum of styles. Contingency theory suggests that the effectiveness of a leadership style depends on the context, but it does not explicitly outline a progression from autocratic to democratic leadership. Functional theory discusses the roles and functions in a team setting but does not detail leadership style spectrums