The Effect of Stretch Goals on Destructive Leadership and Counterproductive Work Behavior in Indonesian State-Owned-Enterprises

Diah Retno Wulandaru; Wakhid Slamet Ciptono; Ely Susanto

doi:10.22146/jlo.70140

The Effect of Stretch Goals on Destructive Leadership and Counterproductive Work Behavior in Indonesian State-Owned-Enterprises

https://doi.org/10.22146/jlo.70140

Diah Retno Wulandaru^(1*), Wakhid Slamet Ciptono⁽²⁾, Ely Susanto⁽³⁾

(1) Magister and Doctoral of Leadership and Policy Innovation Program, Graduate School, Universitas Gadjah Mada, Yogyakarta, Indonesia, and Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia
(2) Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta
(3) Department of Public Policy and Management, Faculty of Social and Political Sciences, Universitas Gadjah Mada, Yogyakarta
(*) Corresponding Author

Abstract

Introduction/Main Objectives: This study aims to examine the effect of stretch goals on destructive leadership with burnout as the mediating variable and then the effect of destructive leadership on counterproductive work behavior of employees with psychological capital as a moderating variable. Background Problems: The phenomenon of irregularities that occur in SOE in Indonesia is interesting to study. Deviations committed by SOE leaders in Indonesia include fraud, gratification, and data manipulation. The increase in the number of irregularities has a negative effect on organizational performance because it causes several counterproductive work behaviors in employees. Novelty: Empirical research on destructive leadership is still rare because previous research has focused only on the conceptual side. Research Methods: The design of this study used a survey with a questionnaire completed by 724 respondents who were leaders and employees. The hypothesis testing used Structural Equation Modeling (SEM). Finding/Results: The findings of this study show a positive influence of stretch goals on burnout and a positive influence of stretch goals on destructive leadership, but burnout has no mediating role in the effect of stretch goals on destructive leadership. There is no effect of perceived destructive leadership on employees’ counterproductive work behavior, but psychological capital has a moderating role in the effect of perceived destructive leadership on employees’ counterproductive work behavior. Conclusion: The practical implication of this study is that a stretch goal that is not balanced with resources can cause individuals to behave destructively even though they are at a managerial level.

Keywords

Destructive leadership; stretch goals; employee’s counterproductive behavior; psychological capital

Full Text:

PDF

References

Aasland, M. S., Skogstad, A., Notelaers, G., Nielsen, M. B., & Einarsen, S. (2010). The prevalence of destructive leadership behaviour. British Journal of management, 21(2), 438-452.

Adorno, T., Frenkel-Brenswik, E., Levinson, D. J., & Sanford, R. N. (2019). The authoritarian personality. Verso Books.

Amir, D. A. (2019). The effect of servant leadership on organizational citizenship behavior: the role of trust in leader as a mediation and perceived organizational support as a moderation. Journal of Leadership in Organizations, 1(1).

Aryee, S., Zhen, X. C., Li-Yun, S., & Yaw, A. D. (2007). Antecedents and outcomes of abusive supervision: test of a trickle-down model. Journal of Applied Psychology, 92(1), 191-201.

Ashforth, B. E. (1994). Petty tyranny in organizations. Human Relations, 47, 755-778.

Ashforth, B. E. (1997). Petty tyranny in organizations: A Preliminary examination of antecedents and consequences. Canadian Journal of Administrative Sciences, 14, 126-140.

Avey, J. B., Avolio, B. J., & Luthans, F. (2011). Experimentally analyzing the impact of leader positivity on follower positivity and performance. The Leadership Quarterly, 22(2), 282-294.

Avey, J. B., Hughes, L. W., Norman, S. M., & Luthans, K. W. (2008). Using positivity, transformational leadership and empowerment to combat employee negativity. Leadership & Organization Development Journal, 29(2), 110-126.

Avey, J. B., Luthans, F., & Youssef, C. M. (2010). The additive value of positive psychological capital in predicting work attitudes and behaviors. Journal of management, 36(2), 430-452.

Avolio, B., & Luthans, F. (2006). High impact leader: Moments matter in authentic leadership development. New York: McGraw-Hill.

Bandura, A., & Cervone, D.1986. Differential engagement of self reactive influences in cognitive motivation. Organizational Behavior and Human Decision Processes, 38, 92-113.

Bandura, A., Barbaranelli, C., Caprara, G. V., & Pastorelli, C. (1996). Mechanisms of moral disengagement in the exercise of moral agency. Journal of personality and social psychology, 71(2), 364.

Barsky, A. (2008). Understanding the ethical cost of organizational goal-setting: A review and theory development. Journal of Business Ethics, 81, 63-81.

Barling, J., Slater, F., & Kelloway, E. K. (2000). Transformational leadership and emotional intelligence: An exploratory study. Leadership & Organization Development Journal.

Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational dynamics, 18(3), 19-31.

Bass, B. M., & Steidlmeier, P. (1999). Ethics, character, and authentic transformational leadership behavior. The leadership quarterly, 10(2), 181-217.

Bazerman, M. H., & Tenbrunsel, A. E. (2011). Ethical breakdowns. Harvard Business Review, 89 (4), 58-65.

Bies, R. J., & Tripp, T. M. (1996). Beyond distrust. Getting even” and the need for revenge”. In RM Kramer & TR Tyler (eds.). Trust in organizations, 246-260.

Bono, J. E., & Ilies, R. (2006). Charisma, positive emotions and mood contagion. Leadership Quarterly, 17, 317– 334.

Brown, M. E., & Mitchell, M. S. (2010). Ethical and unethical leadership: Exploring new avenues for future research. Business Ethics Quarterly, 20(4), 583-616.

Bryan, J. F., & Locke, E. A. (1967). Goal setting as a means of increasing motivation. Journal of applied psychology, 51(3), 274.

Byrne, A., Dionisi, A. M., Barling, J., Akers, A., Robertson, J., Lys, R., ... & Dupré, K. (2014). The depleted leader: The influence of leaders' diminished psychological resources on leadership behaviors. The Leadership Quarterly, 25(2), 344-357.

Carver, C. S., & Scheier, M. F. (1998). On the self-regulation of behavior. Cambridge University Press.

Chatman, J. A. (1989). Improving interactional organizational research: A model of person-organization fit. Academy of management Review, 14(3), 333-349.

Chen, P. Y., & Spector, P. E. (1992). Relationships of work stressors with aggression, withdrawal, theft and substance use: An exploratory study. Journal of Occupational and Organizational Psychology, 65(3), 177–184.

Cheng, M. M., Luckett, P. F., & Mahama, H. (2007). Effect of perceived conflict among multiple performance goals and goal difficulty on task performance. Accounting & Finance, 47(2), 221-242.

Christie, R., & Geis, F. (1970). Scale construction. Studies in machiavellianism, 10-34.

Clapp-Smith, R., Vogelgesang, G. R., & Avey, J. B. (2009). Authentic leadership and positive psychological capital: The mediating role of trust at the group level of analysis. Journal of Leadership & Organizational Studies, 15(3), 227-240.

Collins, J. C., & Porras, J. (1994). Built to Last: successful habits of visionary companies. New York: HarperBusiness.

De Hoogh, A. H., & Den Hartog, D. N. (2008). Ethical and despotic leadership, relationships with leader's social responsibility, top management team effectiveness and subordinates' optimism: A multi-method study. The leadership quarterly, 19(3), 297-311.

Duffy, M. K., Ganster, D. C., & Pagon, M. (2002). Social undermining in the workplace. Academy of management Journal, 45(2), 331-351.

Einarsen, S. (1999). The nature and causes of bullying at work. International journal of manpower, 20(1/2), 16-27.

Einarsen, S., Aasland, M. S., & Skogstad, A. (2007). Destructive leadership behaviour: A definition and conceptual model. The Leadership Quarterly, 18(3), 207-216.

Einarsen, S., Skogstad, A., Aasland, M. S., & Løseth, A. M. S. B. (2002). Causes and consequences of kepemimpinan destruktif. In A. Skogstad & S. Einarsen (Eds.), Ledelse på godt og vondt. Effektivitetog trivsel (pp. 233-254). Bergen: Fagbokforlaget.

Einarsen, S., Skogstad, A., Loseth, A. M. S. B., & Aasland, M. S. (2002) Kepemimpinan destruktif: A Behavioural Model. Paper presented at the Department of Psychosocial Science, Bergen.

Erkutlu, H. (2014). Exploring the moderating effect of psychological capital on the relationship between narcissism and psychological well-being. Procedia-Social and behavioral sciences, 150, 1148-1156.

Ferris, G. R., Zinko, R., Brouer, R. L., Buckley, M. R., & Harvey, M. G. (2007). Strategic bullying as a supplementary, balanced perspective on destructive leadership. Leadership Quarterly, 18, 195-206.

Halbesleben, J. R., & Bowler, W. M. (2007). Emotional exhaustion and job performance: the mediating role of motivation. Journal of applied psychology, 92(1), 93.

Hamel, G., & Prahalad, C. K. (1993). Strategy as stretch and leverage. Harvard business review, 71(2), 75-84.

Hershcovis, M. S. (2011). Incivility, social undermining, bullying… oh my!: A call to reconcile constructs within workplace aggression research. Journal of Organizational Behavior, 32(3), 499-519.

Hoobler, J. M., & Brass, D. J. (2006). Abusive supervision and family undermining as displaced aggression. Journal of Applied Psychology, 91(5), 1125.

House, R. J., & Howell, J. M. (1992). Personality and charismatic leadership. The Leadership Quarterly, 3(2), 81-108.

Howell, J. M., & Avolio, B. J. (1993). Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance. Journal of applied psychology, 78(6), 891.

Illies, J. J., & Reiter-Palmon, R. (2008). Responding destructively in leadership situations: The role of personal values and problem construction. Journal of Business Ethics, 82(1), 251-272.

Inness, M., Barling, J., & Turner, N. (2005). Understanding supervisor-targeted aggression: A within-person, between-jobs design. Journal of applied Psychology, 90(4), 731.

Jaramillo, F., Mulki, J. P., & Boles, J. S. (2011). Workplace stressors, job attitude, and job behaviors: is interpersonal conflict the missing link?. Journal of personal selling & sales management, 31(3), 339-356.

Jensen, S. M., & Luthans, F. (2006). Relationship between entrepreneurs' psychological capital and their authentic leadership. Journal of managerial issues, 254-273.

Kaiser, R. B., & Craig, S. B. (2014). Destructive leadership in and of organizations. In D. V. Day (Ed.), The Oxford handbook of leadership and organizations (pp. 260–284). Oxford University Press.

Kellerman, B. (2004). Bad leadership: What it is, how it happens, why it matters. Harvard Business Press.

Kets de Vries, M. F., & Miller, D. (1985). Narcissism and leadership: An object relations perspective. Human Relations, 38(6), 583-601.

Kipnis, D., Schmidt, S., Price, K., & Stitt, C. (1981). Why do I like thee: is it your performance or my orders? Journal of Applied Psychology, 66(3), 324.

Krasikova, D. V., Green, S. G., & LeBreton, J. M. (2013). “Kepemimpinan destruktif: A Theoretical Review, Integration, and Future Research Agenda”. Journal of Management, 39(5), 1308-1338.

Latham, G. P., & Locke, E. A. (1991). Self-regulation through goal setting. Organizational behavior and human decision processes, 50(2), 212-247.

Latham, G. P., & Locke, E. A. (2006). Enhancing the benefits and overcoming the pitfalls of goal setting. Organizational dynamics, 35(4), 332-340.

Lee, R. T., & Ashforth, B. E. (1996). A meta-analytic examination of the correlates of the three dimensions of job burnout. Journal of applied Psychology, 81(2), 123.

Leiter, M. P., & Maslach, C. (1997). The truth about burnout: How organizations cause personal stress and what to do about it. Wiley.

Lemoine, G. J., Blum, T. C., & Roman, P. M. (2016). Detrimental Effects of “Stretch” Goals in Specialty Substance Use Disorder Treatment Organizations. Journal of substance abuse treatment, 64, 13-23.

LePine. J.A., LePine, M.A., & Jackson, C. (2004). Challenge and hindarance stress: Relationship with exhaustion, motivation to learn, and learning performance. Journal of Applied Psychology, 89, 883-891.

Levine, T. R. (2014). Truth-default theory (TDT) a theory of human deception and deception detection. Journal of Language and Social Psychology, 33(4), 378-392.

Liang Guo, Stijn Decoster, Mayowa T. Babalola, Leander De Schutter, Omale A. Garba, Katrin Riisla., (2018) Authoritarian leadership and employee creativity: The moderating role of psychological capital and the mediating role of fear and defensive silence. Journal of Business Research 92, 219–230.

Locke, E. A., & Latham, G. P. (1984). Goal setting: A motivational technique that works!.

Locke, E. A., & Latham, G. P. (2006). New directions in goal-setting theory. Current directions in psychological science, 15(5), 265-268.

Luthans, F. and Avolio, B.J. (2003) Authentic Leadership: A Positive Developmental Approach. In: Cameron, K.S., Dutton, J.E. and Quinn, R.E., Eds., Positive Organizational Scholarship, Barrett-Koehler, San Francisco, 241-261.

Luthans, F., Avolio, B.J., Avey, J.B., and Norman, S.M. (2007), “Psychological Capital, Measurement and Relationship with Performance and Satisfaction,” Personnel Psychology, 60, 541–572.

Maslach, C., & Jackson, S. E. (1986). MBI: Maslach Burnout Inventory; manual research edition. University of California, Palo Alto, CA.

Mawritz, M. B., Mayer, D. M., Hoobler, J. M., Wayne, S. J., & Marinova, S. V. (2012). A trickle‐down model of abusive supervision. Personnel Psychology, 65(2), 325-357.

McCarthy, J., Hrabluik, C., & Jelley, R. B. (2009). Progression through the ranks: Assessing employee reactions to high‐stakes employment testing. Personnel Psychology, 62(4), 793-832.

Mészáros, V., Ádám, S., Szabó, M., Szigeti, R., & Urbán, R. (2014). The Bifactor Model of the Maslach Burnout Inventory–Human Services Survey (MBI‐HSS)—An Alternative Measurement Model of Burnout. Stress and Health, 30(1), 82-88.

Muchinsky, P. M., & Monahan, C. J. (1987). What is person-environment congruence? Supplementary versus complementary models of fit. Journal of vocational behavior, 31(3), 268-277.

Mullins, D. R. (2015). The surface chemistry of cerium oxide. Surface Science Reports, 70(1), 42-85.

Mumford, M. D. (2006). Pathways to outstanding leadership: A comparative analysis of charismatic, ideological, and pragmatic leaders. Psychology Press.

Napier, N. K., & Latham, G. P. (1986). Outcome expectancies of people who conduct performance appraisals. Personnel Psychology, 39(4), 827-837.

O'Leary-Kelly, A.M., Griffin, R.W. and Glew, D.J. (1996)

Organization-motivated aggression: A research framework. Academy of Management Review, 21, 225-253.

Ordóñez, L. D., Schweitzer, M. E., Galinsky, A. D., & Bazerman, M. H. (2009). Goals gone wild: The systematic side effects of overprescribing goal setting. The Academy of Management Perspectives, 23(1), 6-16.

Padilla, F. M., de Dios Miranda, J., & Pugnaire, F. I. (2007). Early root growth plasticity in seedlings of three Mediterranean woody species. Plant and Soil, 296(1-2), 103-113.

Cunha, Pina e M., Giustiniano, L., Rego, A., & Clegg, S. (2016). Mission impossible? The paradoxes of stretch goal setting. Management Learning, 48(2), 140-157.

Robinson, S. L., & Bennett, R. J. (1995). A typology of deviant workplace behaviors: A multidimensional scaling study. Academy of management journal, 38(2), 555-572.

Rousseau, D. M. (1997). Organizational behavior in the new organizational era. Annual Review of Psychology, 48, 515–546.

Ross, S. M., & Offermann, L. R. (1997). Transformational leaders: Measurement of personality attributes and work group performance. Personality and Social Psychology Bulletin, 23(10), 1078-1086.

Sari, U. T. (2019). The effect of ethical leadership on voice behavior: the role of mediators organizational identification and moderating self-efficacy for voice. Journal of Leadership in Organizations, 1(1).

Schaubroeck, J., Walumbwa, F. O., Ganster, D. C., & Kepes, S. (2007). Destructive leader traits and the neutralizing influence of an “enriched” job. The Leadership Quarterly, 18(3), 236-251.

Schilling, J. (2009) From Ineffectiveness to destruction: A qualitative study on the meaning of negative leadership. Leadership, 5(1), 102-128.

Schmidt, V. A. (2008). Discursive institutionalism: The explanatory power of ideas and discourse. Annu. Rev. Polit. Sci., 11, 303-326.

Schweitzer, M. E., Ez, L. O. & Douma, B. (2004). Goal setting as a motivator of unethical behavior, Academy of Management Journal, 47(3), 422-432.

Schyns, B., & Schilling, J. (2013).”How bad are the effects of bad leaders? A meta-analysis of destructive leadership and its outcomes”. The Leadership Quarterly, 24(1), 138-158.

Shaw, J. B., Erickson, A., & Nassirzadeh, F. (2014). Destructive leader behaviour: A study of Iranian leaders using the Destructive Leadership Questionnaire. Leadership, 10 (2), 218-239.

Sherman, S. (1995). Stretch goals: The dark side of asking for miracles. Fortune, 13 November, 231–232.

Shoss, M. K., Eisenberger, R., Restubog, S. L. D., & Zagenczyk, T. J. (2013). Blaming the organization for abusive supervision: The roles of perceived organizational support and supervisor's organizational embodiment. Journal of Applied Psychology, 98(1), 158.

Sitkin, S. B., See, K. E., Miller, C. C., Lawless, M. W., & Carton, A. M. (2011). The paradox of stretch goals: Organizations in pursuit of the seemingly impossible. Academy of management review, 36(3), 544-566.

Ones, D. S., Stanek, K. C., & McGue, M. (2017). Counterproductive behaviors: Relations across life domains, etiology, and implications for applied practice. International Journal of Selection and Assessment, 25(2), 111-124.

Story, J. S., Youssef, C. M., Luthans, F., Barbuto, J. E., & Bovaird, J. (2013). Contagion effect of global leaders' positive psychological capital on followers: does distance and quality of relationship matter?. The International Journal of Human Resource Management, 24(13), 2534-2553.

Takeuchi, R., Chen, Z., & Cheung, S. Y. (2012). Applying uncertainty management theory to employee voice behavior: An integrative investigation. Personnel Psychology, 65(2), 283-323.

Taris, T. W. (2006). Is there a relationship between burnout and objective performance? A critical review of 16 studies. Work & Stress, 20(4), 316-334.

Tenbrunsel, A. E., & Messick, D. M. (2004). Ethical fading: The role of self-deception in unethical behavior. Social justice research, 17(2), 223-236.

Tepper, B. J. (2000). Consequences of abusive supervision. Academy of Management Journal, 43(2), 178-190.

Tepper, B. J. (2007). Abusive supervision in work organizations: Review, synthesis, and research agenda. Journal of management, 33(3), 261-289.

Tepper, B. J. Duffy, M. K., Henle, C. A., & Lambert, L. S. (2006). Procedural injustice, victim precipitation, and abusive supervision. Personnel Psychology, 59, 101.

Tepper, B. J., & Henle, C. A. (2011). A case for recognizing distinctions among constructs that capture interpersonal mistreatment in work organizations. Journal of Organizational Behavior, 32(3), 487-498.

Thompson, K. R., Hochwarter, W. A., & Mathys, N. J. (1997). Stretch targets: What makes them effective?. Academy of Management Perspectives, 11(3), 48-60.

Thoroughgood, C. N., Sawyer, K. B., Padilla, A., & Lunsford, L. (2018). Destructive leadership: A critique of leader-centric perspectives and toward a more holistic definition. Journal of Business Ethics, 151(3), 627-649.

Vredenburgh, D., & Brender, Y. (1998). The hierarchical abuse of power in work organizations. Journal of Business Ethics, 17(12), 1337-1347.

Walter, F., & Bruch, H. (2010). Structural impacts on the occurrence and effectiveness of transformational leadership: An empirical study at the organizational level of analysis. The Leadership Quarterly, 21(5), 765-782.

Wu, T. Y., & Hu, C. (2009). Abusive supervision and employee emotional exhaustion: Dispositional antecedents and boundaries. Group & Organization Management, 34(2), 143-169.

Youssef, C. M., & Luthans, F. (2012). Positive global leadership. Journal of World Business, 47(4), 539-547.

Yukl, G. (1989). Managerial leadership: A review of theory and research. Journal of management, 15(2), 251-289

DOI: https://doi.org/10.22146/jlo.70140