Final answer:
The example of formal management controls among the options given is C) budgeting and reporting activities. These include documented policies and procedures that guide behavior and ensure company goals are met.
Step-by-step explanation:
An example of formal management controls is C) budgeting and reporting activities. Formal management controls are the procedures, policies, and guidelines that organizations put in place to direct employee behavior and ensure the achievement of company objectives. These controls include documented rules, financial controls, quality management, performance measurement systems, and corporate governance practices.
Other examples provided in the question, such as a firm's culture (A), the willingness of employees to monitor each other (B), and managerial motivation (D), are considered informal controls. These are not documented or formally instituted, but rather are part of the everyday interactions and social norms within an organization.