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Orientation to Change - the Second Dimension
When individuals receive information about the success or failure of their own actions, or when something changes in the environment, they differ in how they interpret that information.
If individuals interpret the information, they receive to be contingent upon their own actions, it is called internal locus of control - that is "I was the cause of the success or failure of the change"
If they interpret the information as being a product of outside forces, it is called an external locus of control - that is something or someone else caused the success or failure.
Over time people develop a "general expectancy" about the dominant sources of the "information" they receive. Thus, they become largely internally focused or dominantly externally focused with regard to who influences, and controls change in their environments - they themselves OR something or somebody else.
Firms led by "internals" engaged in more innovation, more risky projects, more leadership in the marketplace, longer planning horizons, more scanning of the environment, and a more highly developed technology than external led firms did.
Individuals with external locus of control have been found to be more inclined to initiate structure as leaders to help clarify roles. External locus of control does not inhibit individuals from attaining positions of power and influence at the top of the organisation.
It is important to note that locus of control can shift over time. Therefore, when you know your internal - external score, you can know how to be successful in the right setting or know when to alter your locus of control.
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