Navigating Coercive Control in Organizations: A Study on Employee Responses and Outcomes

ABSTRACT The literature shows that organizations may use control mechanisms in both coercive and enabling ways to manage efficiency and flexibility. However, the predominant view assumes that the use of coercive control negatively affects employees. Thus, this study aims to provide empirical evidence regarding how employees respond to the use of coercive control. We draw on social exchange theory to hypothesize that the use of coercive control will manifest in higher turnover intentions and lower employee performance as employees engage in organizational cynicism. Using survey data from 899 employees, we find evidence consistent with our hypotheses. Practically, our results suggest that firms should carefully consider whether the use of coercive control is worth the cost of increased employee cynicism. Supplemental analysis reveals that decentralization and participation in control system design are two mechanisms that firms can use to mitigate the effects of cynicism associated with the use of coercive control. Data Availability: The data are available from the authors upon request.