Abstract

Although leniency from leaders is a frequent occurrence in workplaces, there is no research to date regarding the reactions of employees when observing leaders display leniency towards their peers. This paper applies deonance theory to argue that employees interpret leader leniency as a form of comparative grievance, which shapes feelings of envy towards their peers. Subsequently, employees hold the grantor and recipient involved in leadership leniency responsible for this unfavorable situation. Responding out of deontic reactions, it is predicted that employees will react by socially undermining their favored peers and avoiding interaction with lenient leaders. It is also proposed that observers’ rivalry and mindfulness moderate these responses. Two studies (Study 1, N = 314, and Study 2, N = 458) were conducted to empirically test our model. As expected, the results revealed that employees who witnessed leader leniency reacted by socially undermining peers and avoiding interaction with leaders. Our results also found that employees who observe leader leniency react unfavorably harming both their peers and supervisors; and that this reaction peaks when both employees rival with their coworkers and lack mindfulness. The paper concludes by discussing the implications of these findings and suggesting directions for future research.