Organizational Dysfunction: A Conflict of Trust and Control

Abstract

The objective of our article is to examine organizational dysfunction as a consequence of misfit between organizational controls and levels of workforce trust within nations. By examining three elements of trust, we suggest that trust varies among national workforces. This relationship provides a basis for a theoretical framework which posits that a negative relationship between trust and control can produce organizational dysfunctions when there is a misfit between organizational control and societal trust. We propose that financial accounting practices serve as an important indicator of inherent societal trust which should fit controls implemented at the managerial accounting level. The paper concludes with a discussion of contributions and implications for future research.