Detriments of exploitative leadership in the hotel industry: role of conspiracy beliefs and forgiveness climate

PurposeThis study aims to investigate the indirect relationship between exploitative leadership (EL) and psychological distress through emotional complexity. This study also predicted that belief in organizational conspiracy theories moderates the association between EL and emotional complexity. Furthermore, forgiveness climate acts as a boundary condition between emotional complexity and psychological distress. Design/methodology/approachThe respondents of this time-lagged study (N = 325) were working in five-star and four-star hotels in three cities located in Pakistan, namely, Rawalpindi, Islamabad and Lahore. Data were collected through the questionnaire. FindingsResults revealed that exploitative leaders cause emotional complexity among hotel employees, enhancing their psychological distress. The study further showed that hotel employees who believe in organizational conspiracy theories are more likely to experience emotional complexity under an exploitative leader. Additionally, the perceived forgiveness climate moderates the relationship between emotional complexity and psychological distress. Practical implicationsHotel managers should avoid hiring those candidates for leadership positions who have a tendency to engage in exploitative behavior. Managers should maintain regular communication with hotel workers to minimize beliefs in organizational conspiracy theories. Managers should also develop a forgiveness climate to minimize psychological distress among hotel employees. Originality/valueIt is one of the few studies investigating the negative consequences of EL, particularly in the hospitality industry. This study has also identified the underlying causes of psychological distress among hotel workers.