Understanding the role of locus of control in consultative decision-making

Management Decision 43 (3):397-412 (2005)
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Abstract

Purpose – The study aims at clarifying whether locus of control may act as a bias in organisational decision-making or not. Design/methodology/approach – Altogether 44 managers working at Skanska (a Swedish multinational construction company) participated in the study. They were asked to complete a booklet including a locus of control test and a couple of decision tasks. The latter were based on case scenarios reflecting strategic issues relevant for consultative/participative decision-making. Findings – The results revealed that managers with low external locus of control used group consultative decision-making more frequently than those with high locus of control. There was also a tendency showing that high externals more frequently used participative decision-making than low externals. This was in line with the general trend, indicating that managers on the whole predominantly used participative decision-making. Originality/value – The results of the present study are valuable for HRM practice, especially with regard to the selection of individuals to management teams.

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Marcus Selart
Norwegian School of Economics

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