Understanding the role of locus of control in consultative decision-making: a case study

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.