Leader forgiveness: a double-edged sword effect on employees' taking charge

Purpose Drawing on social information processing theory, this study aims to examine how the effects of leader forgiveness on employees' taking charge vary contingent upon employees' perceived overqualification, operating through both positive (state gratitude) and negative (psychological entitlement) pathways that create a double-edged sword effect. Design/methodology/approach Using a two-wave time-lagged design, we collected data from 356 leader-employee dyads and tested hypotheses through multi-level path analysis and the Monte Carlo method. Findings For highly overqualified employees, leader forgiveness increases psychological entitlement, subsequently reducing their taking charge. Among employees with low perceived overqualification, leader forgiveness fosters state gratitude, thereby enhancing taking charge. Practical implications Organizations should apply leader forgiveness within structured frameworks with clear accountability standards. They should cultivate appreciation cultures to promote state gratitude, foster collectivist atmospheres to minimize psychological entitlement and optimize person-job fit through comprehensive recruitment and job redesign to effectively manage perceived overqualification. Originality/value This study advances the literature by revealing the dual effects of leader forgiveness on employees' taking charge through both cognitive and emotional mechanisms. It integrates social information processing theory to highlight these pathways and identifies perceived overqualification as a key moderator, offering insights into when leader forgiveness produces positive or negative outcomes.