Well said by Marcus Buckingham in First, Break All the Rules: What the World’s Greatest Managers Do Differently:
“Some managers are hamstrung by their fundamental mistrust of people. A mistrustful manager’s only recourse is to impose rules. For a mistrustful person, the managerial role is very stressful.
The rules rarely succeed in anything but creating a culture of compliance that slowly strangles the organization of flexibility, responsiveness, and perhaps more important, good will.”
That is a key point: multiplying rules strangles good will. And if you strangle good will, you eliminate the motivation for people to do very much beyond mere compliance. In other words, you will have ripped the heart out of the organization.