Deception is a common and daily occurrence in organizations. Despite this, little is known about how leader deception influences follower perceptions and commitment to the leader and the broader organization. This laboratory experiment uses a low-fidelity simulation task to investigate the effects of leader deception on follower perceptions of leader–member exchange (LMX) and follower commitment to the organization. Moderating effects of financial outcomes that resulted from deception, or who gained from deception, were also tested. Results showed negative effects of leader deception on follower LMX perceptions and affective commitment. Leader financial gain worsened the effects of leader deception on LMX compared with organizational financial gain. Implications of these findings are discussed.
