Management Review ›› 2021, Vol. 33 ›› Issue (12): 262-271.

• Organizational Behavior and Human Resource Management • Previous Articles     Next Articles

Cost of Laissez-faire: Leader Reward Omission and Employees' Unethical Behavior

Peng Quiping1, Zhong Xi2, Liu Shanshi1, Zhou Huaikang1   

  1. 1. School of Business Administration, South China University of Technology, Guangzhou 510640;
    2. School of Management, Guangdong University of Technology, Guangzhou 510520
  • Received:2019-01-04 Online:2021-12-28 Published:2022-01-25

Abstract: Leaders play a critical role in employees' unethical behavior. However, existing studies focus mainly on leadership's provoking or inhibiting effect on employees' unethical behavior, without paying attention to the potential influence of laissez-faire leadership. Drawing upon the Stress-Emotion theory, the study examines the relationship between reward omission (a typical form of laissez-faire leadership) and employees' unethical behavior. Using a sample of 245 employees, the result shows that leader reward omission not only direcly has a positive effect on employees' unethical behavior, but also indirectly result in such behavior through the partial mediating role played by emotional exhaustion. Taking the contextual effect of employees' proactive personality into consideration, we find that the proactive personality will not only weaken the positive impact of leader reward omission on emotional exhaustion but also weaken the mediating role of emotional exhaustion in the relationship between leader reward omission and employees' unethical behavior. The paper enriches the knowledge of employees' unethical behavior from the perspective of laissez-faire leadership and provide important enlightenment on how to prevent and control unethical behavior.

Key words: leader reward omission, emotional exhaustion, proactive personality, unethical behavior