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In the previous tutorials, we addressed methods that can be used to ensure high-performing organizations. Another element to ensure a high-performing workplace is the people themselves.
Locus of control refers to a person’s belief about the degree they have control over their life. An internal locus of control means a person believes things that happen are within their control and are influenced by their own abilities, actions, or mistakes. A person with an external locus of control tends to feel that when something happens, other forces, such as luck, or the actions of others are responsible.
Let’s consider how locus of control might occur within an individual.
Gordon has an internal locus of control. He took the initiative to start his e-bike business and did not wait for the perfect timing or opportunity. He went through the process, such as writing a business plan and building his products. Gordon faced some challenges early on, such as supplier issues and low initial sales. When faced with these obstacles, he actively sought solutions, and rather than giving up, Gordon showed resilience by powering through, learning from mistakes, and looking at setbacks as opportunities for learning. As Gordon’s business has become successful, he attributes his team to this success but also knows his e-bike company’s success is a result of his hard work, strategic decisions, and perseverance. As you can see from this example, Gordon’s internal locus of control helps him engage in self-efficacy, which is an individual's belief in his capacity to engage the behaviors needed to meet his goals. He believes he can control his own motivation and behaviors in order to achieve success.
Now let's look at someone with an external locus of control. Gordon's friend James has also decided to start an e-bike company. Because of his external locus of control, James believes the business will be successful and doesn’t do a lot of research or planning in the beginning stages of his business. When there are setbacks, James blames them on external factors, like a down economy and strong competition. Rather than attempt to resolve these problems, James hopes they will resolve themselves and doesn’t take action in order to resolve them. These setbacks are stressful and discouraging, which makes James want to give up. Because of his external locus of control, when the business closes before he sells a single bike, he believes that the failure was a result of external factors out of his control, rather than making the necessary changes to give the business potential success.
Important to this contrast is that both men faced the same challenges, and indeed many factors are outside of their control, such as the level of competition. But Gordon's internal locus of control led him to focus on the things he could control.
Following are examples of personal qualities that create an internal or external locus of control:
| Internal Locus of Control | External Locus of Control |
|---|---|
|
Takes responsibility Focused on self-improvement Driven by internal rewards Proactive Focused on active problem solving Ability to “bounce back” High self-efficacy Empathetic |
Blames others Not engaging in self-improvement Driven by external rewards Lacks initiative Passive approach to problem solving Difficulty overcoming setbacks Poor self-efficacy Self-centered |
For organizations to achieve high-performance work systems, clearly, having employees that have an internal locus of control is important, and there are some things companies can do to cultivate this belief within their employees.
First, organizations can empower employees by giving them authority to make decisions and allowing them to take ownership of projects and tasks. Allowing employees a flexible work environment (where possible), such as working hours and location, can assist them in having more control over their work and how and when it is done.
Companies that want to engage employees with an internal locus of control will also promote growth and learning, and will reward not just outcomes, but effort and progress toward personal and company goals. Throughout the process, constructive feedback and encouraging self-assessment by the employee can foster an environment that focuses on internal locus of control. Leadership in an organization should also model internal locus of control by taking responsibility, showing resilience, and demonstrating problem-solving skills.
One way managers can encourage an internal locus of control is through their management style.
Theory X and Theory Y is a theory proposed by Douglas McGregor. He proposed there are two types of managers, Theory X and Theory Y managers. He believed each of these types of managers uses a different approach in management, which influences how people perceive control over their outcomes.
Theory X managers believe that employees inherently dislike work, lack ambition, and require strict supervision to achieve organizational goals. This management style assumes a more external locus of control, where employees believe their outcomes are determined by external factors such as authority figures or organizational policies. Managers who adhere to Theory X principles may inadvertently reinforce this external locus of control by exerting tight control over employees, thereby fostering a belief that their success or failure hinges largely on external directives rather than their own efforts or decisions.
EXAMPLE
An operations manager using this approach is likely to give rewards or punishments based on productivity and quality, such as the number of defects in their production. This method does not give employees an internal locus of control, since the manager is the one providing the rewards and punishments. Moreover, it presumes that workers are not already trying their best to turn out high-quality products.Theory Y managers assume that employees are self-motivated, enjoy work, and seek responsibility. This approach assumes a more internal locus of control, where individuals believe they can influence outcomes through their own actions and decisions. Managers embracing Theory Y empower employees by delegating responsibility and encouraging autonomy, fostering an environment where individuals perceive themselves as having control over their work and its outcomes. This reinforces an internal locus of control, as employees are encouraged to take ownership of their responsibilities and see themselves as active contributors to organizational success.
EXAMPLE
An operations manager using this approach would assume the workers are all doing as best they can. If they find the number of defects is high, they will invite employees to brainstorm the reasons and solutions for these problems. Rewards would be given to workers who spot and correct productivity problems or propose solutions.Intrinsic motivation is the motivation of people to engage in an activity because it is satisfying and not necessarily because there will be a reward. Extrinsic motivation means to engage in a behavior because one wants to earn external rewards or avoid punishment.
Let’s look at an example of how this might occur in the fast-food industry. Suppose Sarah works at a fast-food restaurant full-time. She is intrinsically motivated because she enjoys working with customers, helping them meet their needs, and tries to be friendly and put a smile on everyone’s face. Now suppose David also works at the same restaurant, and he tells his colleagues often he is “just there for the paycheck.” In this case, David is driven by external rewards (paycheck) and probably does not find much satisfaction in the work itself.
For Sarah, she is motivated by gaining satisfaction from her work, which in the long term, is much more a motivator than simply doing something for the expected reward. However, the paycheck is still important! Therefore, we can say managers should try to find ways for employees to be motivated intrinsically but also can provide extrinsic motivation.
This isn’t always easy, particularly for repetitive tasks with little opportunity for creativity. Gamification is the process of adding games or game-like aspects, often to tasks that are mundane, to encourage participation and motivation. Gamification is already all around us. For example, if you have a fitness tracker watch, it rewards you by buzzing and “celebrating” once you reach a certain number of steps. If you use a rideshare app and tip often, you might earn a “high tipper badge” or be given a badge once you reach a certain number of rides.
Companies use gamification for workers as well. For example, companies use digital scoreboards where employees or teams of employees can earn badges or points based on metrics, such as speed of service, or upselling products or services. Companies also use gamification to encourage completion of training and development courses. The use of gamification can assist employees in developing both an internal locus of control and focus on intrinsic rewards, such as earning a badge for a job well done.
EXAMPLE
Domino’s Pizza uses gamification to decrease delivery times, increase employee engagement, and assist in their training processes. They use simulations and games to reward employees when they beat the time it takes to learn the menu, and points are awarded for making pizzas better.While companies focus on the many elements of creating a high-performance work system, such as job design, performance management, and measurement of performance, the human aspect of motivation, regardless of the industry and position, should be considered. Managers that understand locus of control, apply a theory Y approach to management, and focus on a mix of intrinsic and extrinsic rewards are much more likely to achieve high-performance work systems.
Source: This tutorial has been adapted from Saylor Academy and NSCC “Operations Management”. Access for free at https://pressbooks.nscc.ca/operationsmanagement2/. License: Creative Commons Attribution 4.0 International.
