The Unintended Consequences of Motivational Techniques: Goal Setting and Unethical Behavior in the Maltese Financial Services Industry

Abstract

Recent research has uncovered situations where the goal setting process in organizations can have unintended consequences, including instances where it has been associated with unethical behaviour. This study tries to understand the situations in which an application of goal setting theory might lead to unethical behaviour. Literature has shown that one of the possible factors influencing the relationship between goal setting and unethical behaviour is the way in which goals are set. Interviews with staff directly involved with the goal setting process in a large Maltese bank indicated that a lack of employee participation in the goal setting process and the way in which rewards were tied to goal achievement could lead to unethical behaviour when promoting financial products. Personality was also suggested as a factor influencing the possibility of engaging in unethical behaviour in this context.

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