“Braking” bad: How managers can respond to employee misbehavior

Employee misbehavior can be defined as transgressions that go beyond unintentional mistakes but do not rise to the level of criminal offenses. Managers are often given substantial discretion over how to handle such behavior, but they may be unsure about what their response should be or unaware of the extent to which others will care about their response. We offer a framework to help managers respond to misbehavior, particularly when firing the offender is not an option. We identify types of formal and informal responses that not only deter future offenses but also help to restore perceptions of justice within the organization. We also provide guidance on how managers should select and communicate these responses to other employees. Finally, we highlight two supplementary actions that managers can consider to restore perceptions of justice: victim restitution (that is, providing compensation to or otherwise helping to assuage the distress of the wronged party) and offender reintegration (that is, helping the wrongdoer get back to work within the organization).