Final answer:
Self-regulation grants an organization the ability to set its own rules and standards as well as to avoid external oversight, but does not allow it to operate without legal constraints. It is related to how bureaucracies self-manage and can protect their reputations while being resistant to criticism. Reference groups influence individual behaviors as standards within organizations.
Step-by-step explanation:
Self-regulation gives an organization the ability to set its own rules and standards (a), avoid external oversight (b), but not to operate without legal constraints (c). Hence, the correct answer is a combination of options a and b. Self-regulation in this context refers to the ways in which bureaucracies can develop rules and manage their own operations to some extent. An example of this is the ability of an organization to decide how to best achieve its goals, like Bettina exercising will power by resisting cupcakes while training for her race, representing an individual form of self-regulation. At an organizational level, self-regulation is often scrutinized because it tends to limit external intervention and can lead to challenges when there is misconduct since bureaucracies may resist criticism and protect their reputations.
Moreover, collective action problems within organizations tend to be more manageable in small groups where individual behavior is easier to monitor (b). An important set of rules for any institution is its code of conduct (a), which acts as a framework for self-regulation. Furthermore, groups influence an individual's behavior, with reference groups (c) serving as a standard for one's actions.