Based from the following learning objectives, answer the questions.

Objectives

• the value of effective strategic control systems in strategy implementation
• The key difference between "traditional" and "contemporary" control systems
• The imperative for contemporary control systems in today's complex and rapidly changing competitive and general environments
• the benefits of having the proper balance among the three levers of behavioral control; culture, rewards and incentives and boundaries
• the three key participants in corporate governance: shareholders, management (led by the CEO) and the board of directors.
• the role of corporate governance mechanisms in ensuring that the interests of managers are aligned with those of shareholders from both the United States and International perspectives.

Questions:

1. Why are effective strategic control systems so important in today's economy?
2. what are the main advantages of contemporary control systems over traditional control systems? What are the main differences between these two systems?
3. Why is it important to have a balance between the three elements of behavioral control - culture, rewards and incentives, and boundaries?
4. Discuss the relationship between types of organizations and their primary means of behavioral control.
5. Boundaries become less important as a firm develops a strong culture and reward system. Explain.
6. Why is it important to avoid a "one best way" mentality concerning control systems? What are the the consequences of applying the same type of control system to all types of environments?
7. What is the role of effective corporate governance in improving a firm's performance? What are some of the key governance mechanisms that are used to ensure that managerial and shareholder interests are aligned?
8. Define principal-principal (PP) conflicts. What are the implications for corporate governance?
9. Strong culture can have powerful effects on employee behavior. How does this create inadvertent control mechanisms? That is, are strong cultures an ethical way to control behavior?
10. Rules and regulations can help reduce unethical behavior in organizations. To be effective, however, what other systems, mechanisms and processes are necessary?