Locus of Control and Performance Appraisal

John Heywood, Uwe Jirjahn and Cornelia Struewing
Authors registered in the RePEc Author Service: Cornelia Chadi

No 2016-03, Research Papers in Economics from University of Trier, Department of Economics

Abstract: This work contributes to the literature demonstrating an important role for psychological traits in labor market decisions. We show that West German workers with an internal locus of control sort into jobs with performance appraisals. Appraisals provide workers who believe they control their environment a tool to demonstrate their value and achieve their goals. We confirm that workers who are risk tolerant also sort into jobs with performance appraisals but explain why the influence of the locus of control and risk tolerance should not be additive. We demonstrate this by estimating a routinely large and significantly negative interaction in our sorting equations. We also show that important patterns of sorting are revealed only when taking into account the interaction of locus of control and risk tolerance.

Keywords: Locus of control; risk attitude; performance appraisal; performance pay; sorting; extrinsic rewards; intrinsic motivation (search for similar items in EconPapers)
JEL-codes: D03 J33 M52 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2016
New Economics Papers: this item is included in nep-cbe, nep-hrm, nep-lma and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2016-03.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Locus of control and performance appraisal (2017)
Working Paper: Locus of Control and Performance Appraisal (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:trr:wpaper:201603

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