Problems that occur in one's psychosocial functioning can be referred to as psychosocial dysfunction or psychosocial morbidity.. This refers to the lack of development or atrophy of the psychosocial self, often occurring alongside other dysfunctions that may be physical, emotional, or cognitive in nature.owever, not all psychosocial activity is therapeutic. In some environments and social movements, such as with post-WW2 East Germany Stasi's zersetzung, which has been called psychosocial crime, the development of the individual is intentionally exploited to cause damage to the individual's ability to form social bonds.