Final answer:
The statement is false; managers who set unrealistic goals may increase the likelihood of unethical behavior as employees struggle to meet these targets by any means, which can include dishonest practices.
Step-by-step explanation:
The statement that managers who set unrealistic production or sales goals decrease the probability that employees will act unethically is false. Unrealistic goals may actually increase the pressure on employees to achieve targets by any means necessary, which can lead to unethical behavior. When managers set exceedingly high expectations that workers find difficult or impossible to meet, employees might resort to cutting corners, misreporting numbers, or engaging in other unethical practices to create the appearance of meeting those goals.
Setting achievable and realistic goals, on the other hand, can help create a work environment where employees feel motivated and capable of reaching targets through ethical means. It's important for managers to balance ambition with realism to promote a culture of integrity and honesty within an organization. Undue pressure and impractical objectives can lead to a decline in morale and an increase in unethical actions as a way to cope with the demands.