Which of the following is true about controls?
A) The content of long-range plans is more qualitative and judgmental in nature than that of budgets.
B) Bureaucratic controls are less formal than other controls and are the result of shared beliefs and expectations among the members of an organization.
C) The choice of bureaucratic controls rather than cultural controls can be justified if the company enjoys a low turnover rate.
D) Cultural controls consist of a limited and explicit set of regulations and rules that outline desired levels of performance.

Question

Quizplus · Accepted Answer

Long-range plans are usually more focused on broad goals and objectives, whereas budgets are more specific and detailed in nature. Therefore, the content of long-range plans tends to be more qualitative and judgmental.

Answer: C
 Bureaucratic controls are highly formal and rely on strict rules and regulations to guide behavior. Cultural controls, on the other hand, are less formal and rely on shared values and beliefs to influence behavior. A low turnover rate could indicate that the company's bureaucratic controls are effective, but this does not necessarily justify their continued use over cultural controls.

Answer: D
 Cultural controls are based on shared values, beliefs, and norms. They are usually implicit and unspoken, but can be powerful in guiding behavior. As such, they do not consist of a limited and explicit set of regulations or rules.

Which of the Following Is True About Controls