12. A joint venture is a type of takeover C. extensive use is made of rules and SOPs to coordinate tasks collusion d. most of the communication within the organization is lateral c. strategic alliance cartel 18. Which of the following observations made by Parkinson led to the development of the Parkinson's law? 13. The costs of negotiating, monitoring, and governing exchanges between people are a. A division of labor increases efficiency. known as the b. As the number of levels in the hierarchy increases, the quality of the costs, transaction communication improves. historical c. The use of flat organization structure improves the motivation of the employees. d. Managers seek to increase the number of their subordinates sunk opportunity 19. Which of the following terms refers to the number of subordinates a manager directly supervises? refers to the way in which an organization groups organizational tasks into a. span of control roles and roles into subunits. b. chain of authority a Vertical integration c. degree of standardization Horizontal differentiation d. level of centralization Vertical differentiation Horizontal integration 20. Which of the following functions will most likely have the tallest hierarchy? a. Manufacturing 15. Top-level managers make all the important decisions in an organization. This b. Sales organization is said to be differentiated d. Accounting formalized centralized decentralized 21. In the case of a bureaucracy, if managers fail to control the development of the organizational hierarchy properly then the organization is most likely to become refers to a situation in which the authority to make important decisions about a. flexible organizational resources and new projects is delegated to managers at all levels in the decentralized hierarchy. c. unresponsive to the needs of customers a Formalization d. very flat Standardization Integration d. Decentralization 17. Mechanistic structures result when a. employees work collaboratively and across several functions