A curvilinear relationship between task autonomy and employee moral disengagement: an interdisciplinary approach

Purpose: We theorized and tested employees’ moral disengagement as a transaction cost component, which may be controlled by tailoring the level of task autonomy. Design/methodology/approach: In this field study, 225 employee-supervisor-matched multi-source data were collected from various organizations located in South Korea. Data were analyzed with multiple hierarchical regressions. Findings: We found an inverted U-shaped curvilinear relationship between employees’ task autonomy and their moral disengagement, suggesting a counterproductive impact of providing moderate levels of task autonomy. Moreover, this curvilinear pattern is particularly pronounced among highly evaluated employees, which exhibits a lock-in effect of transaction costs. Research limitations/implications: Our study identifies employees’ moral disengagement as a form of organizational transaction costs, highlighting its relevance in advancing the human resource management discipline. The current empirical results do not establish causality due to the cross-sectional research design. Practical implications: We recommend two governance methods to mitigate moral disengagement among employees: one that employs minimal task autonomy and another that provides maximum autonomy. This suggestion is especially relevant for effectively managing high-performing employees who are particularly sensitive to the varying levels of task autonomy. Originality/value: Taking an interdisciplinary approach, this research borrows the lens of transaction cost theory and its applications to understand the employee–management relationship.