2. INTERNALITY
• It is those types of behaviors that impose
costs on a person in the long-run that are not
taken into account when making decisions in
the present.
• When an individual perception is that his own
behavior and attitude results in positive
rewards, internality is located
3. REASONS FOR INTERNALS TO
PERFORM BETTER
• Internals holds stronger expectancies that
effort will result in good performance and that
good performance will lead to rewards.
• Internals seek new and relevant information
more actively and therefore perform better
than externals on complex tasks.
• Self-serving Bias
4. Internals perform better on
following jobs/tasks
• Tasks requiring initiative and independence of
action
• High skilled jobs
• Jobs requiring high motivation
• Professional jobs
5. EXTERNALITY
• When an individual perception is that external
factors outside his control(destiny, luck) are
responsible for rewarding behavior, externality
is indicated.
6. • Positive externality:- there is a benefit to other
than real consumer or producer.
• Negative externality:- there is a cost to some
one other than real consumer or producer.
10. EXAMPLES of internality and
externality
• WORKING CONDITIONS/ENVIRONMENT
• HOMOPHOBIA
• RACISM
• URBAN-RURAL RESIDENCE
• GENDER
11. Other examples
• Researchers may discover new ideas that
benefits the state(positive internality), other
states may benefit from borrowing these
ideas(positive externality).
• Supplying water to residents(positive
internality), a local government may degrade
the available in other localities(negative
externality).
