In the context of management, what is meant by locus of control?

Locus of control refers to an individual's belief about the extent to which they have control over the events that affect their lives. When someone has an internal locus of control, they believe that they can influence outcomes through their own efforts, decisions, and abilities. This mindset is crucial in management as it impacts how managers approach challenges, motivate their teams, and strive for goal achievement. Managers with a strong internal locus of control are likely to take initiative, responsibility, and accountability for their actions, ultimately leading to a more proactive and empowered work environment.

In contrast, those with an external locus of control may attribute outcomes to external factors, such as luck or the actions of others, which can lead to a sense of helplessness or passivity in the face of challenges. Understanding where one's locus of control lies can significantly affect decision-making and leadership effectiveness in business practices.