Given that many organizations are competitive and finance centered, organizational leaders may lead with a primary focus on bottom-line attainment, such that they are perceived by their subordinates as having a bottom-line mentality (BLM) that entails pursuing bottom-line outcomes above all else. Yet, the field is limited in understanding why such a leadership approach affects employees’ positive and negative contributions in the workplace. Drawing on social exchange theory, we theorize that supervisors high in BLM can influence employees’ felt obligation toward the bottom line, which in turn can influence employees’ task performance and unethical pro-organizational behavior (UPB). We also examine employee ambition as a moderator of this process. Using three-wave, multisource data collected from the financial services industry, our results revealed that high-BLM supervisors elevate employee task performance as well as UPB by motivating employees’ felt obligation toward the bottom line. Furthermore, we found that employee ambition served as a first-stage moderator, such that the mediated relationships were stronger when employee ambition was high as opposed to low. Our findings break away from the dominant dysfunctional view of BLM and provide a more balanced view of this mentality.
PurposeThis study proposes and tests a model grounded in resource-based theory to describe how the formal rules embedded in an organization's green human resource management (GHRM) combine with informal cues communicated by members of the firm's upper echelon, including the CEO and members of the top management team (TMT), to affect a firm's environmental performance.Design/methodology/approachMulti-source data were collected from 240 human resource managers, chief financial officers and CEOs in 80 firms.FindingsThe results show that CEO ethical leadership moderates the positive relationship between GHRM and TMT green commitment, which in turn mediates the relationship between GHRM and firms' environmental performance.Originality/valueThe tested importance of CEO ethical leadership as an organizational condition that amplifies the effectiveness of strategically aligned HRM systems offers new theoretical insights to advance HRM scholarship.
Bottom-line mentality (BLM) describes a one-dimensional frame of mind revolving around bottom-line pursuits, which pervades most organizations today. But how does working with high BLM supervisors affect employees’ functioning both at work and at home? Guided by this question, we draw on social information processing theory and insights from the person-environment fit literature for a nuanced understanding of the effects of supervisor BLM. Using data from two field studies conducted in China (340 employees) and the United States (174 employees), we find that supervisor BLM increases employee perceptions of a competitive climate that ultimately increases employee thriving at work and insomnia outside work. We further find that employee trait competitiveness moderated the indirect relationship (via perceived competitive climate) between supervisor BLM and thriving at work but not for insomnia; employees high (versus low) in trait competitiveness were found to thrive at work under the competitive climate stimulated by high BLM supervisors. Taken together, our findings highlight the need for organizational leaders to be cautious of being too narrowly focused on bottom-line outcomes and aware of the wider implications of BLM on different domains of their employees’ lives.
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