The Soft Side of Hard Controls: A Control Coding Theory
14 Pages Posted: 7 Feb 2020
Date Written: January 13, 2014
Controls can have positive or increasingly negative effects on the behavior of employees. In this article we develop a theory to explain these effects. Central to this is the way employees interpret the management intentions in applying control measures. Since control measures reduce employee autonomy, there is a risk that employees either put too much faith in the measures or grow to mistrust them. Three mechanisms are presented for excessive trust and mistrust.
Keywords: control, culture, management, audit
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