If you could grant any quality to your children, which would you choose? Great intelligence? Empathy for humanity? Much more respect for their parents? The ability to walk past the fridge without opening it?
Deborah Cobb-Clark, an economist at the University of Sydney, has a different answer: an internal locus of control. The concept of locus of control was developed in the sixties by a psychologist with a memorable name, Julian Rotter [in English, rotter means scoundrel]. It is closely linked to the idea of action. People with an internal locus of control believe they are capable of influencing the world around them; those with an external locus of control tend to think that luck, fate, or other people determine their destiny.
It turns out that being a person with an internal locus of control is quite useful. It motivates effort: a study conducted by Cobb-Clark and her coauthors analyzed a group of people who had just lost their jobs in Germany and found that those with a more external locus of control searched for work less intensely than the internal ones. After all, why spend time looking for a job if the results do not depend on one’s actions? Moreover, the externals had lower reservation wages, that is, the minimum salary they were willing to accept for a job.
Many people habitually underestimate their ability to influence their circumstances
An internal locus is linked to self-control: another study concluded that households with a greater sense of agency save a larger portion of their wealth. It also helps turn intention into action, as it seems to drive people with entrepreneurial aspirations to actually take the step and become founders.
Being a person with an internal locus of control also seems to benefit descendants. A study conducted by Warn Lekfuangfu, from Carlos III University of Madrid, along with his coauthors, found that, all else being equal, the locus of control of future mothers is related to the effort they dedicate to active parenting. Internal people tend to think that the time spent developing their children’s skills will pay off. Externals, on the other hand, are more likely to believe: “Little Rodney is just a helpless toy in the hands of fate.”
The locus of control exists on a spectrum. Cobb-Clark is especially concerned about the small minority of people who never really develop a sense of their own agency. However, many more habitually underestimate their ability to influence their circumstances.
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In her aptly titled book, You Can Simply Do Things, Cate Hall cites research by Francis Flynn and Vanessa Lake, then at Columbia University, showing that people miscalculate the likelihood that others will respond to their requests for help. In a series of experiments, the researchers asked participants to estimate how many strangers they would have to approach to complete various tasks, from filling out questionnaires to borrowing a mobile phone to make a call. The actual numbers were much lower than the estimates, not because people are incredibly kind, but because it is uncomfortable to refuse a direct request for help.
In another experiment, Steven Levitt, from the University of Chicago, had people who hesitated before a big decision flip a virtual coin to help them choose. If the coin favored change, the person was much more likely to break with the status quo. Those who did reported feeling much happier than those who did not. This suggests that many people who would benefit from a change lack the determination needed to take control of their own destiny without a little push.
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If an external locus of control is limiting people, it could also be holding back organizations. A new study, coauthored by Feng Xu, from Harbin Institute of Technology, analyzes the adoption of artificial intelligence by manufacturing companies in Shenzhen. The researchers conclude that those with an internal locus of control, and therefore tend to see artificial intelligence as a skill to be mastered, are more willing to share knowledge about their experiences with this technology. Conversely, those with an external locus of control, who tend to perceive the technology as a threat to their job, are more likely to withhold information.
What should managers do about it? They could assess locus of control in selection processes: Andrej Karpathy, a well-known AI researcher, has stated that, as a trait, initiative is both more powerful and scarcer than intelligence. Compensation and promotion systems should routinely reward achievements, although that link can be made more explicit. Cultural norms can also be established to encourage people to take action. “Ask forgiveness, not permission” is a mantra that can have quite negative consequences if you have many people with high initiative and no limits. But the underlying idea is valid.
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