An Investigation of the Relationship Between Ethics-Oriented HRM Systems, Moral Attentiveness, and Deviant Workplace Behavior

Deviant workplace behaviors (DWB) cause enormous costs to organizations, sparking considerable interest among researchers and practitioners to identify factors that may prevent such behavior. Drawing on the theory of moral development, we examine the role of ethics-oriented human resource management (HRM) systems in mitigating DWB, as well as mechanisms that may mediate and moderate this relationship. Based on 232 employee-supervisor matched responses generated through a multi-source and multi-wave survey of 84 small and medium enterprises (SMEs) in Pakistan, our multilevel analysis found that ethics-oriented HRM systems relate negatively to employee DWB via the mediation of perceptual and reflective moral attentiveness. This indirect relationship is further moderated by two societal-inequality induced factors – employee gender and income level – such that the indirect effects of ethics-oriented HRM systems on DWB through perceptual and reflective moral attentiveness are stronger among women and lower-income employees.