People with an external locus of control believe what happens to them is mainly decided by outside forces: luck, fate, powerful others or circumstances. People with an internal locus believe their own actions matter most. Psychologist Julian Rotter set out the idea, with a scale to measure it, in a 1966 monograph on generalised expectancies for internal versus external control of reinforcement.
Through experience, people form a general expectation about whether their actions lead to rewards.
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A spectrum, not a type
Most people sit somewhere between the poles, and their view can differ between work, health and money.
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It shapes effort
If outcomes seem outside your control, trying harder looks pointless, so people try less.
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Sometimes it is accurate
Some situations really are controlled by others; the problem is an external view that is wrong for the situation.
Where you see it today
At work
A meta-analysis of studies linking locus of control to work outcomes found that an internal locus was associated with favourable outcomes such as greater job motivation and more positive task and social experiences (Ng et al., 2006).
Managed by an algorithm
A study of Uber and Lyft drivers described how software assigned their work, guided them and evaluated their performance, and how drivers turned to online forums to make sense of it (Lee et al., 2015). When an algorithm decides, the sense that outcomes come from outside can be well founded.
Helplessness is the default
Revisiting fifty years of research, Maier and Seligman concluded that passivity is the default response to prolonged bad events, and that it is overcome by learning control (Maier and Seligman, 2016). Hands-on experience matters more than reassurance.
Facing AI at work
People who see AI as something that happens to them tend to wait for instructions; those who see it as something they can steer start experimenting. This is a pattern to test in your own team rather than an established finding.
Typical behaviourStops trying even when control is possible
Self-efficacy
Core beliefI can carry out this specific task
Typical behaviourTakes on the task and persists
Self-serving bias
Core beliefSuccesses are mine, failures are not
Typical behaviourCredits self for wins, blames others for losses
How to use it
Separate what you control, what you influence and what you cannot change before deciding what to do.
Give people small, real decisions over their work; control is learned through experience.
With AI tools, start with low-stakes experiments people run themselves rather than top-down rollouts.
Explain how algorithmic systems that evaluate people work, and offer a route to contest decisions.
In reviews, check whether explanations for results point only outward or only inward; both can be wrong.
The Business Engineer lens
AI raises the stakes of where people place control: those who treat it as weather wait, while those who treat it as a tool redesign their work around it. The Business Engineer treats that active stance as part of thinking as a system.
No. Some situations really are outside a person's control; it becomes a problem when the belief stops people acting where they could make a difference.
When algorithms assign and rate work, people may reasonably feel outcomes are outside their control; giving them hands-on control over tools can help restore agency.
The complete explainer, cleaned up and reformatted for mobile.
Those with an external locus of control believe external variables or factors are to blame for what happens to them. Locus of control refers to one’s perception of the drivers of certain events in their life.
Introduction
DescriptionExternal Locus of Control is a psychological concept that refers to an individual’s belief that external factors, such as luck, fate, or powerful others, primarily control the outcomes of their life rather than their own actions and decisions. Understanding this concept is essential in psychology, as it influences an individual’s behavior, coping strategies, and overall well-being.
Key Concepts
Description– Locus of Control: Locus of Control is a continuum ranging from external to internal. External Locus of Control represents the belief that outcomes are determined by external factors, while Internal Locus of Control signifies the belief that one’s actions and decisions shape their fate.
Description– Attribution Theory: Attribution theory explores how individuals attribute the causes of events, with external locus individuals attributing outcomes to external factors.
Description– Learned Helplessness: Individuals with a strong external locus of control may experience learned helplessness, where they believe they have no control over their circumstances, leading to passivity and lack of effort.
Description– Self-Efficacy: This concept, introduced by Albert Bandura, relates to an individual’s belief in their ability to influence their life’s outcomes and is closely tied to locus of control.
Impact on Behavior
DescriptionExternal Locus of Control can significantly influence behavior and decision-making:
Description– Passivity: Individuals with a strong external locus of control may become passive, feeling that their actions have little impact on their lives.
Description– Risk Avoidance: They may avoid taking risks, as they believe luck or external factors are more influential than their own efforts.
Description– Dependency: External locus individuals may rely on others or seek external validation more frequently.
Description– Coping Strategies: Their coping strategies may involve seeking help or relying on external sources of support during challenging times.
Origins and Development
DescriptionLocus of Control beliefs can develop through various factors:
Description– Early Experiences: Childhood experiences, parenting styles, and the presence of role models can shape an individual’s locus of control.
Description– Cultural and Societal Factors: Cultural and societal norms and values can influence whether a society promotes internal or external locus beliefs.
Description– Trauma and Adversity: Traumatic experiences and repeated failures can reinforce external locus beliefs.
Measurement
DescriptionLocus of Control can be measured using psychological assessment tools such as Rotter’s Locus of Control Scale, which presents scenarios to gauge an individual’s beliefs about control over events.
Applications
DescriptionUnderstanding locus of control has practical applications in various fields:
Description– Education: Educators can consider students’ locus of control beliefs when designing teaching strategies.
Description– Clinical Psychology: Therapists may address locus of control in therapy to help clients develop a healthier sense of control.
Description– Workplace: HR professionals can consider locus of control when assessing employees’ adaptability and leadership potential.
Description– Personal Development: Individuals can use this awareness to make proactive changes in their life and career.
Challenges and Considerations
DescriptionChallenges related to locus of control include:
Description– Change: Shifting from an external to an internal locus of control can be challenging but is possible with intervention and self-awareness.
Description– Cultural Sensitivity: Cultural differences should be considered when interpreting locus of control beliefs.
Description– Complexity: Locus of control is a multifaceted concept, and individuals may exhibit varying degrees of external and internal beliefs.
Future Trends
DescriptionFuture trends related to locus of control may involve:
Description– Personalized Interventions: Tailoring interventions and therapies based on an individual’s locus of control beliefs.
Description– Technology: The role of technology and digital experiences in shaping locus of control may be explored.
Description– Education: Educators may continue to adapt teaching methods to accommodate diverse locus of control orientations among students.
Description– Well-Being: The connection between locus of control and mental health and well-being may be further explored.
Conclusion
DescriptionExternal Locus of Control is a psychological concept that reflects an individual’s belief that external factors predominantly determine the outcomes in their life. This belief can significantly influence behavior, decision-making, and coping strategies. Understanding locus of control is valuable in various domains, including education, clinical psychology, and personal development, as it provides insights into how individuals perceive and respond to the world around them. Recognizing the malleability of locus of control beliefs and their impact on individuals’ lives remains essential for fostering personal growth and well-being.
Understanding an external locus of control
Unlike those with an internal locus of control who believe they control their destiny, individuals with an external locus of control believe their destiny is in the hands of some other factor or variable.
In other words, they perceive that the events in their life are outside their control.
When an individual perceives that an external factor is in control, they are more likely to associate outcomes with luck, happenstance, religion, or some predetermined destiny.
This perception causes the individual to stop exhibiting certain behaviors โ no matter how beneficial they may be โ because of this belief that their actions have no impact on their life.
External locus of control characteristics
Some of the characteristics of those with an external locus of control include:
Feeling powerless or without hope during difficult situations.
The tendency to attribute any life successes to luck.
The tendency to avoid setting goals or making plans with the view that external factors will inevitably upset them.
Passivity. That is, they sit back and expect beneficial opportunities to present themselves on a silver platter.
A compulsion to believe in conspiracy theories that explain why something happens a certain way. This can also manifest as paranoia.
The belief that talents or skills cannot be developed over time. This is otherwise known as a fixed mindset.
Impacts of an external locus of control
An external locus of control can be useful in limited scenarios.
For example, employees with this mindset are less likely to be impacted by an abusive superior because they recognize that the managerโs personality is beyond their sphere of influence.
Nevertheless, this mindset is generally seen as less desirable when compared to an internal locus of control. To explain why this is so, consider how an external locus of control relates to other psychological theories.
Self-efficacy theory
Social psychologist Albert Bandura proposed the idea of self-efficacy in 2010 as a measure of how capable one feels in their ability to achieve their goals.
Those with an external locus of control โ no matter how talented โ believe they are not capable of succeeding. In effect, this becomes a self-fulfilling prophecy because they avoid taking the steps necessary to realizing a desirable future state.
Personality theories
Locus of control and how it relates to personality has been studied extensively in the context of work satisfaction and health outcomes.
Perhaps unsurprisingly, studies have shown that an external locus of control is associated with elevated stress levels, anxiety, and even depression.
These mental states arise from learned helplessness. Here, the individual experiences repeated failures or challenges in work or health contexts and mistakenly believes that no action of theirs will result in positive outcomes.
Case Studies
Business Leadership: In the business world, leaders with an external locus of control may struggle to take responsibility for their company’s performance. They might attribute success or failure to market conditions or luck rather than their leadership decisions.
Startup Founders: Entrepreneurs with an external locus of control might believe that the success of their startup is entirely dependent on external factors like investor funding or market trends, leading to a lack of initiative in adapting to changing circumstances.
Tech Startups: In the tech industry, companies that blame external factors like competition or regulations for their inability to innovate may stagnate. Those with an internal locus of control are more likely to proactively seek solutions.
Cybersecurity: Organizations that rely solely on external factors, such as government regulations or third-party security software, to protect their data may be more vulnerable to cyberattacks. Those with an internal locus of control would prioritize internal security measures.
Product Development: Tech companies that believe their product’s success is solely determined by consumer preferences and not by their development efforts may fail to iterate and improve their offerings.
Market Entry Strategies: Companies entering new markets may blame external factors, like cultural differences, for poor sales rather than taking proactive steps to understand and adapt to the local market.
Customer Service: Businesses with an external locus of control may attribute customer complaints to external factors like “difficult customers” rather than examining their own service quality and processes for improvement.
Tech Adoption: When introducing new technology in a company, employees with an external locus of control may resist change, believing that the technology will not significantly impact their work or that it will be problematic due to external factors.
Data Privacy Compliance: Organizations that view data privacy compliance as a burden imposed by external regulations may not take proactive steps to protect customer data until faced with legal consequences.
Tech Investments: Investors who rely solely on external market conditions to guide their tech investments may miss opportunities or make poor decisions when market conditions change unexpectedly.
Key takeaways
Those with an external locus of control believe external variables or factors are to blame for what happens to them.
Some of the characteristics of those with an external locus of control include a tendency to feel powerless or hopeless in difficult situations, the avoidance of making plans or setting goals, and a belief that one cannot improve oneโs talents or abilities over time.
An external locus of control is likely to be undesirable in most circumstances, but it can be useful in situations where the individual is subject to the harmful behavior or actions of others.
Key Highlights about External Locus of Control
Definition and Concept: An external locus of control refers to the belief that external factors, circumstances, or forces are responsible for the events and outcomes in one’s life. It contrasts with an internal locus of control, where individuals believe they have control over their own actions and destiny.
Beliefs and Perception: Individuals with an external locus of control perceive that their life events and circumstances are beyond their control. They attribute outcomes to luck, fate, destiny, or external influences, rather than their own actions or efforts.
Impact on Behavior: This belief system can lead to specific behaviors and tendencies:
Feeling powerless or lacking hope during challenging situations.
Attributing personal successes to luck rather than their own abilities.
Avoiding setting goals or making plans, expecting external factors to disrupt them.
Displaying passivity, waiting for opportunities to come without proactive efforts.
Embracing conspiracy theories or exhibiting paranoia to explain events.
Believing that skills and talents cannot be developed over time.
Effects and Implications:
Positive Aspects: In certain situations, an external locus of control can provide a sense of protection against events beyond an individual’s control, like dealing with a difficult boss.
Negative Aspects: Generally, an external locus of control is associated with less desirable outcomes:
Reduced self-efficacy: Individuals doubt their abilities and may not take necessary actions.
Learned helplessness: A cycle of failures and challenges leads to a belief that their actions have no impact, contributing to stress, anxiety, and depression.
Limited goal-setting: A reluctance to set and pursue goals due to the belief that outcomes are predetermined.
Relation to Psychological Theories:
Self-efficacy theory: External locus of control hinders self-efficacy, which is the belief in one’s capacity to achieve goals.
Personality theories: Research suggests a link between locus of control and work satisfaction, mental health, and stress levels. External locus of control is associated with higher stress, anxiety, and depression due to learned helplessness.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
