Abstract

This paper explains how well intended HR practices associated with performance appraisal and compensation can be linked to employee misconduct. Based on a rational choice perspective to ethical behavior, different types of HR configurations are likely to either increase the perceived costs or benefits of employee misconduct. This paper links specific HR configurations with both perceived costs and benefits of employee misconduct. Finally, this paper concludes with recommendations that are designed to promote both effective job performance and minimize problems of employee misconduct.

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