In: European journal of work and organizational psychology: the official journal of The European Association of Work and Organizational Psychology, Band 33, Heft 3, S. 356-367
How do supervisors who treat the bottom line as more important than anything else influence team success? Drawing from social information processing theory, we explore how and when supervisor bottom-line mentality (i.e. an exclusive focus on bottom-line outcomes at the expense of other priorities) exerts influence on the bottom-line itself, in the form of team performance. We argue that a supervisor's bottom-line mentality provides significant social cues for the team that securing bottom-line objectives is of sole importance, which stimulates team performance avoidance goal orientation, and thus decreases team performance. Further, we argue performing tension (i.e. tension between contradictory needs, demands, and goals), serving as team members' mutual perception of the confusing environment, will strengthen the indirect negative relationship between supervisor bottom-line mentality and team performance through team performance avoidance goal orientation. We conduct a path analysis using data from 258 teams in a Chinese food-chain company, which provides support for our hypotheses. Overall, our findings suggest that supervisor's exclusive focus on the bottom-line can serve to impede team performance. Theoretical contributions and practical implications are discussed.
With the recent COVID-19 pandemic, among other crises (e.g., Russia–Ukraine conflicts and recession projections) threatening organizations' financial conditions across the globe, supervisors may not only encounter challenges such as job cuts that test their ethical leadership, but also experience financial insecurity themselves. However, our knowledge of why and when supervisors' ethical leadership behaviors may be affected in such a situation remains quite limited. In this research, we draw on uncertainty management theory (UMT) to examine the potential influence of financial insecurity on ethical leadership. Specifically, we suggest that financial insecurity triggers anxiety in supervisors, which inhibits their demonstration of ethical leadership. We also propose organizational pay fairness as a boundary condition for this process, such that supervisors who perceive their pay as fair are less susceptible to the anxiety resulting from financial insecurity than those who perceive their pay as unfair. Results from two multi-source, multi-wave studies supported our hypothesized model. We conclude by discussing the theoretical and practical implications of our findings.