The limits of leniency: How leaders respond to employee misconduct matters

CHAPEL HILL, N.C., Oct. 8, 2024 /PRNewswire/ — New research from the University of North Carolina Kenan-Flagler Business School shows that leaders who are lenient with employee misconduct can face unexpected backlash from their employees. Despite good intentions, letting misconduct slide leads to negative reactions from employees who view leniency as unfair and harmful to the work environment. 

Marie Mitchell, a professor of organizational behavior at UNC Kenan-Flagler, worked with researchers from the University of Tulsa, Purdue University and Georgetown University to study the impact of leader leniency on employees who observe the misconduct. Their findings were published in the Journal of Applied Psychology.

They reveal that employees expect leaders to address misconduct and hold individuals accountable—whether the issue is an ethical violation or a task-based error—because misconduct is costly. It can be a financial drain on organizations, and it places employees and customers in harm’s way.

Leaders might think the easy or empathetic thing to do is let things slide or be lenient, particularly if it is a small slight. But Mitchell explains there’s a “social cost” to leniency for onlooking employees and so it should be used with caution.

The research offers several key takeaways: 

Leader leniency from misconduct is prevalent in organizations, but this research shows it triggers negative reactions from employees who view it as unfair and irresponsible.Employees expect leaders to hold coworkers accountable for their misconduct.Negative reactions can be mitigated if employees believe there’s a moral justification, specifically if the offender is in personal distress. The sense of distress evokes compassion that reduces the unfairness of leniency and punitive reactions. Without a moral reason, employees experience contempt, which fuels the unfairness of leniency and their desire to punish the leader.

“Leniency should come with a warning label for leaders: Use carefully and when compassion is warranted,” Mitchell said of the findings. 

This research offers valuable insights into leadership behavior and organizational justice. It is particularly relevant as workplaces continue to emphasize ethical standards, leadership and employee accountability, and employee cooperation and engagement.

Mitchell’s coauthors are Shubha Sharma of the University of Tulsa, Kate Zipay of Purdue University’s Mitch Daniels School of Business, Robert Bies of Georgetown University’s McDonough School of Business and Natalie Croitoru, a doctoral student at UNC Kenan-Flagler. 

The findings of their studies are reported in the article “Considering Personal Needs in Misdeeds: The Role of Compassion in Shaping Observer Reactions to Leader Leniency,” which is forthcoming in the Journal of Applied Psychology. 

For more information or to arrange an interview with Dr. Mitchell, please contact Allison Adams at [email protected] or [email protected]

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The University of North Carolina at Chapel Hill, the nation’s first public university, is a global higher education leader. Carolina is committed to ensuring that every student who earns admission can come to Carolina and thrive. Addressing the greatest challenges of our time through innovative teaching, research and public service, Carolina is an engine of opportunity for the next generation of students, the economy and innovation in North Carolina and beyond. A member of the prestigious Association of American Universities, Carolina regularly ranks as the best value for academic quality in U.S. public higher education. More than 367,000 Carolina alumni live in all 50 states, the District of Columbia, U.S. territories and 151 countries. Over 196,000 live in North Carolina.

UNC Kenan-Flagler Business School’s mission is to build and inspire leaders who make the world a better place. It offers a broad range of programs – Undergraduate Business, MBA, Master of Accounting, PhD and Executive Development – that are consistently ranked among the world’s best. Faculty share an unparalleled dedication to our students’ learning and rigorous research.

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SOURCE University of North Carolina at Chapel Hill Office of Communications