Article1992

The Moderating Effects of Locus of Control on Performance Incentives and Participation

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Experimental Behavioral Economics Studies Job Satisfaction and Organizational Behavior Employee Performance and Motivation

Abstract

Prior research has suggested that matching individual characteristics with task expectations and requirements leads to improved performance. The objective of this study was to examine the role of locus of control, an important individual characteristic, in moderating the impact of performance-contingent incentives and participation on performance. The results, based on a laboratory experiment, indicate that locus of control moderates the performance effects of both participation and incentives. The interaction with incentives is a substitute type in which either the person factor (locus of control) or the situation factor (incentives) blocks the effects of the other factor. The interaction with participation is a blocking type, wherein external orientation diminishes the performance effect of participation.

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References

1966Generalized expectancies for internal versus external control of reinforcement.1976Motivation through the design of work: test of a theory 2013Academy of Management Journal 1981Goal setting and task performance: 1969–1980.1985Control: Organizational and Economic Approaches 1973Motivation in Work Organizations 2012Journal of Management Accounting Research 1982Behavior in organizations as a function of employee's locus of control.

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