This is from the blog Understanding Society
From the article:
But we need to make a distinction between failure and dysfunction. The latter concept is systemic, having to do with the design and culture of the organization. Failure can happen as a result of dysfunctional arrangements; but it can happen as a result of other kinds of factors as well. For example, the Tylenol crisis of 1982 resulted from malicious tampering by an external third party, not organizational dysfunction.
From the post:
Charles Perrow has written extensively on the failures of the US regulatory sector (link).
And this in the same post from Perrow: Organizing America: Wealth, Power, and the Origins of Corporate Capitalism.