Answer to Question 1
Bureaucratic controls consist of a limited and explicit set of regulations and rules that outline desired levels of performance. Cultural controls, on the other hand, are much less formal and are the result of shared beliefs and expectations among the members of an organization.
Cultural controls require an extensive socialization process, and informal, personal interaction is central to the process.
The elements of bureaucratic or formalized controls are (1) an international budget and planning system, (2) the functional reporting system, and (3) policy manuals used to direct functional performance.
The primary instruments of cultural control are the careful selection and training of corporate personnel and the institution of self-control. The choice of cultural controls rather than bureaucratic controls can be justified if the company enjoys a low turnover rate.
Answer to Question 2
C
