Locus of control and incentive in self‐managing teams

A simulation game of employees working in self‐managed teams was used to test the effects of locus of control and performance‐contingent incentives on productivity and job satisfaction. The only performance effect was that participants with external locus of control (externals) in the incentive condition outperformed externals without incentive. Participants with internal locus of control (internals) were more satisfied with their supervisors than were externals. This article discusses implications for employee involvement approaches and makes recommendations for further research.