Answer the following statements true (T) or false (F)

Question

1. Without good management, complex organizations tend to become chaotic. 
2. Leadership functions include planning, budgeting, organizing, and staffing. 
3. One of the ways companies manage complexity is by aligning people. 
4. Leaders try to achieve their vision by motivating and inspiring others. 

Answer 1

1. TRUE
Management is necessary because complex organizations, especially the large ones that so much dominate the economic landscape, tend to become chaotic unless there is good management.
2. FALSE
According to Kotter, companies manage complexity in several ways, including determining what needs to be done (planning and budgeting) and creating arrangements of people to accomplish an agenda (organizing and staffing). These are managerial, not leadership, functions.
3. FALSE
Instead of organizing and staffing (management functions), leaders are concerned with aligning people, Kotter says. That is, they communicate the new direction to people in the company who can understand the vision and build coalitions that will realize it.
4. TRUE
Instead of controlling and problem solving, leaders try to achieve their vision by motivating and inspiring. That is, they appeal to "basic but often untapped human needs, values, and emotions," says Kotter, to keep people moving in the right direction, despite obstacles to change.