According to Fiedler, relationship-oriented leaders are most effective in moderately favorable situations.

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Fiedler's contingency theory proposes that a leader's effectiveness depends on the situational favorableness, which is determined by the leader's style, the task structure, and the leader-member relations. Fiedler suggests that relationship-oriented leaders who emphasize interpersonal relationships, trust, and collaborations perform best in moderately favorable situations where the task is defined, and the group members have some trust and respect for the leader. However, in highly favorable or unfavorable situations, task-oriented leaders who focus on achieving goals and enforcing rules or laissez-faire leaders who delegate tasks and avoid interference perform better than relationship-oriented leaders.

According to Fiedler, Relationship-Oriented Leaders Are Most Effective in Moderately