Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

Which theory describes the exchange relationship that develops between a leader and a follower over time?

1. Dyadic Theory

2. Situational Theory

3. Transformational Theory

4. Transactional Theory

The correct answer is: Dyadic Theory

The theory that specifically describes the exchange relationship that develops between a leader and a follower over time is known as Dyadic Theory. This theory focuses on the relationships that form between leaders and their individual followers, emphasizing the importance of these one-on-one interactions. It posits that the quality of these relationships can vary and often leads to differing levels of motivation, commitment, and performance among followers. Over time, leaders and followers establish a dynamic exchange in which trust, respect, and mutual influence play crucial roles, resulting in a unique and evolving relationship. In contrast, other theories such as Situational Theory examine how leaders adjust their styles based on the context and needs of their followers, and Transformational Theory focuses on the ability of leaders to inspire and motivate followers towards a shared vision, impacting broader group dynamics and overall organizational goals. Transactional Theory, on the other hand, deals with the exchange of rewards and punishments between leaders and followers based on performance, focusing on compliance rather than the deeper relational aspect highlighted by Dyadic Theory.