MANAGEMENT CONTROL SYSTEM AND TRUST BETWEEN MANAGERS AND EMPLOYEES: A CASE STUDY DURING COMPANY MERGER IN BRAZIL

Purpose: This study aims to analyze how Management Control System package impacts the perception of trust between managers and employees of a company that was going through asset change processes, such as merger.Method / approach: The methodology adopted is the case study in a telecommunication company in southern Brazil, with semi-structured interviews with five subjects (two managers and three employees) and discourse analysis of data collected.Main findings: As results, it was possible to identify the five components of Management Control System package in the interviewees' reports (cultural controls, planning, cybernetic controls, reward and compensation and administrative controls) and their relationship with the three forms of trust (contractual, communicative and competence-based). It was indicated that transparency in daily actions facilitates the occurrence of trust between managers and employees. In addition, it was analyzed the perception of two interviewees some time after the merger, verifying that trust perceptions were different, according to their proximity to the merger process.Methodological / social / managerial contributions: This study seeks to contribute as analyzes the components of Management Control System package and trust aspects, considering a merger process. Originality / relevance: It is relevant to analyze merger process considering that this uncertainty about the company future may promote in employees undesirable results, such as decrease in productivity, lack of commitment to goals and increase on employees' turnover.