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ACCA Strategic Professional · Strategic Business Leader · Qualities of leadership

A chief executive has always used a consultative style that worked well in a stable business. A sudden regulatory crisis requires an immediate decision, and the board expects firm direction. Applying Vroom and Yetton's contingency model, which analysis is most consistent with the model?

The leader should move to a more autocratic style. Vroom and Yetton's model matches decision style to situational factors, and when time is critical, participative processes become too slow. The trade-off is potentially lower buy-in, which is acceptable given the urgency.

  1. AThe leader should keep consulting because participation always raises decision quality and acceptance
  2. BThe leader should switch to a more autocratic style because decision time is critical, while accepting the risk of lower follower commitmentCorrect
  3. CThe leader should delegate fully, since group decisions are best when the leader lacks expertise
  4. DThe leader should adopt a transformational style, since Vroom and Yetton prescribe it in crises

Explanation

Vroom and Yetton's model chooses among autocratic, consultative and group styles depending on situational factors such as decision quality requirement, information held, need for acceptance and time constraints. Under severe time pressure, a more autocratic style is justified. Option A ignores contingency, and option D confuses it with a different theory.

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