Business Degree Certification Practice Test 2026 – All-in-One Comprehensive Guide to Exam Success!

Fiedler's Contingency Theory posits that the effectiveness of a leader's style is contingent upon specific situational factors. The three core factors he identified for evaluating situational favorableness are leader-member relations, task structure, and position power.

When looking at the relationship between these factors and leadership style, leader-member relations refers to the degree of trust, respect, and confidence that subordinates have in their leader. Task structure pertains to the clarity and specificity of the task at hand. Position power relates to the leader's authority to reward or punish.

Situational favorableness is a concept that encompasses these factors rather than a specific one that Fiedler uses to evaluate the effectiveness of either task-oriented or relationship-oriented leadership styles. Therefore, it is not a separate factor that Fiedler directly considers; instead, it serves as an overarching concept that is influenced by the interplay of the other three identified factors.