E. Boshoff & E.S. van Zyl
Koers 76(2) 2011:283-303
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4. Differences between individuals with an internal locus
of control and individuals with an external locus of
control
According to Robbins et al. (2003:123) and Hume et al. (2006:50,
56), individuals with an external locus of control are less likely to
accept responsibility for the consequences of their behaviour. Fur-
thermore, such individuals are more inclined to rely upon external
influences in the course of making decisions and in general be-
haviour. According to Robbins (2001:96) individuals with external lo-
cus of control experience less job satisfaction, higher absenteeism,
and are less involved in their occupational duties. Edwards (2005:
578) states that external-locus individuals are less self-directed and
tend to drift along in life, often feeling frustrated, and prone to blam-
ing others for mishaps. External-locus individuals also tend to expe-
rience more stress than internal-locus individuals (Norton, 2005:
634).
Individuals in possession of an internal locus of control, however,
rely upon internal standards to differentiate between right and wrong
(Robbins et al., 2003:123; Hume et al., 2006:50-51). Individuals with
an internal locus of control associate the outcomes of the organisa-
tion with their own actions. Such individuals take personal responsi-
bility for unfavourable conditions in the organisation (Robbins et al.,
2003:123; Hume et al., 2006:50-51). Jones and George (2003:79)
add that individuals with an internal locus of control attempt to
intervene in order to change a situation or solve a problem, and are
thus directly involved in problem-solving. Furthermore, individuals
with an internal locus of control have good coping skills and tend to
resist peer pressure to conform. Individuals with an internal locus of
control also tend to experience less stress and respond to difficulties
in a positive way (Norton, 2005:578, 634).
Contradictory findings are reported regarding the relationship be-
tween locus of control and the individual’s religious beliefs. Various
authors, such as Spilka et al. (1985:8) and Flugel (Rasmussen &
Charman, 1995:109-110) indicate that there is a positive relationship
between external locus of control and the individual’s degree of
religiosity, as said individuals obtain direction and guidance from
God (which they regard as an “instrument” or “external” form of
control). Other authors, such as Wong-McDonald and Gorsuch
(2004:321) distinguish a further dimension, namely God control,
which encompasses both internal and external locus of control. It
follows that God is viewed as the external Creator of everything, but
The relationship between locus of control & ethical behaviour … in the financial sector
294
Koers 76(2) 2011:283-303
also the internal Presence which is established in each who believe.
In contrast, Jackson and Coursey (1988:399) found a positive rela-
tionship between internal locus of control and God control. Should
focus be placed on the definition of the construct internal locus of
control, as well as the characteristics associated with individuals
who possess an internal locus of control, the authors concur with the
findings of Jackson and Coursey (1988:399).
Though God may be viewed as an external influence, the choice to
be influenced by Him fundamentally makes for internal control. God
gives man the choice (internal control) of whether or not to invest
belief in Him and the choice (internal control) of whether or not to act
according to his guidelines. This compliments the positive relation-
ship found in this study between internal locus of control and ethical
behaviour, as well as the findings of Kennedy and Lawton (1998:
163), who found that individuals who are more inclined towards
religiousness are less inclined towards unethical behaviour.
Apart from the above-mentioned differences between individuals
with an internal and external locus of control, Hume et al. (2006:56)
indicate that locus of control has a significant influence on ethical
behaviour. According to Stead et al. (1994:59) individual characteris-
tics, such as locus of control, shape ethics and decisions. Chonko et
al. (1996:44) add that individual decision-making characteristics
such as locus of control could provide insight on ethical reasoning.
Trevino and Youngblood (1990:378-379) and Trevino et al. (2006:
965) indicate that the connection between behaviour and the conse-
quences thereof are more likely to be noted by individuals with an
internal locus of control. As a result, responsibility is more readily
assumed by such individuals.
5. Methodology
5.1 Formulation of the research hypothesis
The following hypotheses were investigated in this study:
•
Null hypothesis (H0): There is no statistically significant relation-
ship between scores achieved on locus of control and scores
achieved on ethical behaviour among employees in the financial
sector in the Free State.
•
Theoretical hypothesis (H1): There is a statistically significant
relationship between scores achieved on locus of control and
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