Hidden Costs of Control: Consequences of Over Application of Rigid Control

Abstract

Control is an integral part of every organization. Without proper application of control an organization can’t reach to its goals. But over application of control can cause cost to organization. Impact of rigid control can vary from organization to organization. Excess use of control has adverse effect on customer satisfaction, employee productivity, employee morale & motivation etc. All of these can cause costs to organization; but these costs can’t be measured explicitly. In this paper we have tried to describe dysfunctional sides of control. We have presented some empirical evidences against rigid control that may generate hidden costs of control. Based on the findings of this paper we have provided some recommendations which will help people to understand necessity of keeping proper balance regarding application of control.

Keywords: Integral, dysfunctional, hidden costs of control, empirical, explicit