Using Fiedler's Contingency Theory, Explain Which Type of Leadership Orientation

question 173

Essay

Using Fiedler's Contingency Theory, explain which type of leadership orientation is most effective at low, medium, and high levels of situational favourableness.Give an example of a management job which might apply to each level of favourableness.Use different combinations of the three basic situation factors to construct low, medium, and high levels of favourableness to support your examples.

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Definitions:

Hyperinflations

Extremely high and typically accelerating inflation rates, often exceeding 50% per month.

Quantity Equation

The quantity equation relates the quantity of money in an economy to the nominal value of economic transactions, serving as a foundation for theories on money supply and price levels.

Real Income

The income of an individual or group after taking into consideration the effects of inflation on purchasing power.

Monetary Neutrality

The concept that changes in the money supply only affect nominal variables in the economy (such as prices, wages, and exchange rates) in the long term, without affecting real variables (like employment and real GDP).