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Supervisors driven by bottom line fail to get top performance from employees: 'Bottom-line mentality' can lead to loss of employee respect and loyalty, research shows

Supervisors driven by profits could actually be hurting their coveted bottom lines by losing the respect of their employees, who counter by withholding performance, according to a new study led by Baylor University.

The study, "The Influence of Supervisor Bottom-Line Mentality and Employee Bottom-Line Mentality on Leader-Member Exchange and Subsequent Employee Performance," is published in the journal Human Relations.

"Supervisors who focus only on profits to the exclusion of caring about other important outcomes, such as employee well-being or environmental or ethical concerns, turn out to be detrimental to employees," said lead researcher Matthew Quade, Ph.D., assistant professor of management in Baylor University's Hankamer School of Business. "This results in relationships that are marked by distrust, dissatisfaction and lack of affection for the supervisor. And ultimately, that leads to employees who are less likely to complete tasks at a high level and less likely to go above and beyond the call of duty."

While other studies have examined the impact of bottom-line mentality (BLM) on employee behavior, Quade said this is the first to identify why employees respond with negative behaviors to supervisors they perceive to have BLM.

Matthew J Quade, Benjamin D McLarty, Julena M Bonner. The influence of supervisor bottom-line mentality and employee bottom-line mentality on leader-member exchange and subsequent employee performance. Human Relations, 2019; 001872671985839 DOI: 10.1177/0018726719858394

Original Submission