How can companies decrease the disruptive effects of stretch goals? The moderating role of interpersonal- and informational- justice climates

Abstract

This article attempts to determine whether stretch goals disrupt organizations and, if so, how organizations minimize those disruptions. We consider how two different kinds of justice climates − interpersonal and informational − interact to influence employees’ unethical behavior and relationship conflicts in the face of stretch goals. The results from 117 departments (including a total of 351 employees and 117 managers) in six Chinese banks support our hypotheses that stretch goals foster unethical behavior and intensify relationship conflict among employees. Furthermore, we find that informational-justice climates greatly reduce the disruptive effect of stretch goals on unethical behavior, and we find that interpersonal-justice climates greatly reduce the disruptive effect of stretch goals on relationship conflict. Implications and suggestions for future research are discussed.

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