1. They judge their staff on the basis of performance
x
2. They are primarily task-oriented
x
3. They prefer formal consultation methods rather than seeking staff opinions
x
4. They are closer to their staff
x
Rationale: Psychologically distant managers (PDMs) maintain distance from their subordinates and they prefer formal procedures rather than informal ones, for example, a formal consultation method.
Ways in: Hopefully you were able to rule out the fourth statement. Psychologically close managers are closer to their subordinates. If you remembered that PDMs prefer formal procedures then you may have been able to work out that statements 1,2 and 3 were correct.