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
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
Internals perform better on following jobs/tasks• Tasks requiring initiative and independence of action• High skilled jobs• Jobs requiring high motivation• Professional jobs
EXTERNALITY• When an individual perception is that external factors outside his control(destiny, luck) are responsible for rewarding behavior, externality is indicated.
• 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.
EXAMPLES of internality and externality• WORKING CONDITIONS/ENVIRONMENT• HOMOPHOBIA• RACISM• URBAN-RURAL RESIDENCE• GENDER
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).
IMPORTANCE OF EXTERNALITES & INTERNALITES IN ORGANISATION• Group behavior• Team work