LOCUS OF CONTROL AND PERFORMANCE IN A MANAGEMENT SIMULATION Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 1 LOCUS OF CONTROL AND PERFORMANCE IN A MANAGEMENT SIMULATION Thomas L. Ruble Indiana University Reviews of numerous studies [3, 4, 6] indicate that individuals who view their behavioral outcomes as being determined by their own efforts (internals) are more effective in their goal-directed behavior than individuals who view their outcomes as being determined by outside forces (externals). Thus, it seems reasonable to expect internals to outperform externals in a management simulation. However, a recent study [1] found no relationship between a person’s Locus of Control and his/ her team’s performance in a simulation. This recent study raises questions regarding the possible relationship between individual characteristics (e.g., Locus of Control) and performance in a simulation. Since the study used team performance as a criterion, the results are undoubtedly confounded by a variety of team-related variables. For example, in group situations individuals are not equally (nor independently) responsible for the team’s performance. Moreover, if each group had a range of scores on an individual difference variable (e. g., Locus of Control), the correlation of this variable with a single performance score should yield a coefficient approaching zero. Thus, the relationship between individual characteristics and team outcomes is tenuous at best. Since most management simulations involve team performance, it seems appropriate to investigate the possible effects of Locus of Control as a team composition factor. Assuming that a management simulation is a relatively unstructured task requiring skillful participative decisions, research on Locus of Control [2, 4, 5, 6, 9] suggests the hypothesis that teams of internals should perform better than teams of externals. Thus, the present study investigated the performance of teams formed on the basis of the members’ Locus of Control orientation. In addition, the study also examined the students’ perceptions of the learning value of the game and their interest in the game. METHOD Rotter’s [7] Locus of Control scale was administered to 104 students enrolled in three sections of a course in introductory management. The scores ranged from a low of 1 (internal) to a high of 19 with a median of 9. In each section of the course the Locus of Control scores were divided into three approximately equal classifications of internal, intermediate, and external. Table 1 indicates the classifications based on the Locus of Control scores. The classification scheme was not perfect as there were nine cases when a score classified as internal or external in one section was classified as intermediate in another section. For example, a score of 7 was classified as internal in two Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 2 sections while being classified as intermediate in the third section. However, the few instances of different classification were not considered to be a significant threat to the internal validity [2] of the study. Since the primary concern was a comparison of internals versus externals, the classification scheme used provided for better discrimination between high and low scores than a median-split classification scheme. Moreover, there were no instances when a score classified as internal in one section was also classified as external in another section. Within each section, students classified as internals were randomly assigned to four- person teams. Externals were similarly assigned. In each section there was an equal number of internal and external teams. In section A, there were two teams of each category. In the remaining sections, there were three teams of each category. Thus, a total of eight internal and eight external teams were formed. Students classified as internals or externals that were not assigned to internal or external teams were combined with the intermediate group and randomly assigned to form heterogeneous teams. The teams in each section competed in a business game for five decision periods. The simulation was patterned after OPERATION INTERLOCK [10]. Briefly, the simulation required the teams to use different types of information to make price and output decisions in two competitive markets coupled with investment decisions, source of funds decisions, sales promotion, and marketing research decisions. Upon completion of the five decision periods, teams were informed of their final profits (losses) and their relative standing in their section. The students then completed a questionnaire which included questions on their perceptions of the simulation as “interesting” and “value of the simulation as a learning experience.” The student reactions were assessed on five-point scales ranging from “very little” (1) to “very much” (5). Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 3 RESULTS To test the research hypothesis, the profits (losses) and standings of internal teams were compared to those of external teams (the heterogeneous teams were not included in the statistical analysis but their performance fell between the internal and external teams). A ranking of the final profits (losses) is presented in Table 2. The data clearly indicate that internal teams had better profits than external teams. A Mann-Whitney U test found that this difference was significant (p < .001, one-tailed). However, one problem with this analysis is that teams from one section of the course are compared with teams from another section. Since the number of teams per section and section profits varied, the results may reflect some unknown biases. Another method of comparison would be to determine whether a team finished above or below the median in their own section. Analyzing the data in this manner, we find that seven of the eight internal teams finished above the median in their section while all eight external teams finished at or below the median. A Fisher’s Exact test indicated that this difference was significant (p < .005, one-tailed). Thus, two different methods of analyzing the data provide support for the hypothesis that internal teams would perform better than external teams in a management simulation. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 4 The post-game perceptions were analyzed by first considering the over-all reactions and then comparing the responses of high performers versus low performers. Teams performing above the median in profits or losses in their section were classified as high performers while teams performing below the median were classified as low performers. Two teams falling on the median were excluded from this analysis leaving 12 high performers and 12 low performers. On the whole, the post-game ratings provided support for the popular assertion that business games are interesting. The simulation received an average rating of 4.52 (n = 85) on a five-point scale assessing interest in the exercise. However, the rating of the learning value of the simulation fell to 4.22. The rating of interest in the simulation was significantly higher than the rating of learning value (t 2.68, df = 84, p < .01) suggesting that the students differentiated between interest and learning. The comparison of high performers with low performers yielded significant differences in their views of both interest and learning value. Compared to low performers, high performers rated the simulation as more interesting (X = 4.81 versus X = 4.21; t = 3.38, df 83, p < .01) and more valuable as a learning experience (X = 4.60 versus X = 3.83; t = 3.66, df = 83, p < .001). Thus, it appears that the reactions to the simulation were influenced by the performance of the teams. DISCUSSION The results of the present study indicate that team composition variables can have a strong effect on performance in a management simulation. This finding is important for users of business games as certain procedures for forming teams might contain built-in biases. For example, allowing students (players) to choose their own teams could lead to teams with different potential. Contrary to a previous study [8], the present study found that post-game perceptions of the interest and learning value of the game were related to performance. Specifically, high performers rated the game as more interesting and of greater learning value. Clearly, these subjective ratings must be interpreted with caution as they could reflect a positive “halo effect” related to winning. However, despite the subjective nature of the ratings, game users should consider the implications of the different perceptions of high versus low performers. First, if the perceptions are reasonably valid, they suggest the need for additional attention to the learning needs of the low performers. For example, the game user may provide more extensive debriefing for low performers, emphasizing the learning value of their mistakes. Second, if the perceptions simply represent affective responses to winning or losing, one must question the pedagogical value of a competitive game that causes half of the students to react unfavorably. Rather than designing win-lose business games, game users may want to turn their attention to simulations that provide greater opportunities for all to win. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 5 REFERENCES 1. Brenenstuhl, D. C., and Badgett, T. F. “Prediction of Academic Achievement in a Simulation Mode via Personality Constructs,” Proceedings of the Fourth Annual Conference of the Association for Business Simulation and Experiential Learning, 1977, 223-230. 2. Campbell, D. T., and J. C. Stanley. Experimental and Quasi- Experimental Designs for Research, Chicago: Rand McNally, 1963. 3. Joe, V. C. “Review of the Internal-External Control Construct as a Personality Variable,” Psychological Reports, Vol. 28, (1971), 619-640. 4. Lefcourt, H. M. Locus of Control: Current Trends in Theory and Research, Hillsdale, NJ: Lawrence Erlbaum Associates, 1976. 5. Naditch, M. P., and DeMaio, T. “Locus of Control and Competence,” Journal of Personality, Vol. 43, 1975, 541-559. 6. Phares, E. J. Locus of Control: A Personality Determinant of Behavior, Morristown, NJ: General Learning Press, 1973. 7. Rotter, J. B. “Generalized Expectancies for Internal versus External Control of Reinforcement,” Psychological Monographs, Vol. 80, 1966, Whole No. 609. 8. Rowland, K. M., and D. M. Gardner. “The Uses of Business Gaming in Education and Laboratory Research,” Decision Sciences, Vol. 4, 1973, 268-283. 9. Ruble, T. L. “Effects of One’s Locus of Control and the Opportunity to Participate in Planning,” Organizational Behavior and Human Performance, Vol. 16, 1976, 63-73. 10. Zoll, A. A., 3rd. Dynamic Management Education, Reading, Mass.: Addison-Wesley, 1969. Table of Contents Volume 5, 1978 Debriefing: The Key to Effective Experiential Learning A Kiss Before Debriefing Debriefing with Serialized Theory Development for TaskTeam Learning Insights Into Debriefing Experiential Learning Exercises The Two-Step Flow of Experiential Learning: A Preliminary Investigation Programmatic Experienced-Based Learning in an MBA Program The New Research Focus: An Analysis of the Simulation Game User An Analysis of Performance in Simulation Games Compared to Performance on Structured Course Criteria: A Case Study Le's Simplify the Administrative Requirements of Computerized Educational Simulations Assessment of Sex Stereotypes Within Task Group Simulation The Use of Program BAYAUD in the Teaching of Audit Sampling The Effectiveness of Progressively Complex Accounting Simulations in Increasing Decision-Making Performance The Natural Learning Project The Application of a US-USSR Trade Simulation to the Reaching of Business Russian The Use of Semi-Autonomous Work Group in Graduate Management Education: An Australian Experience Evaluation of an Experimental Course in Organizational Behavior for Managers of Japanese Banks Berkshire II: An Experiential Decision Making Exercise: An Exercise in Hegelian Inquiry Creating a Responsible Managerial Experience A Framework for Determining the Pedagogical Value of Simulation Gaming: Implications for Future Simulation Gamin Research Emergent Simulations in Administration Courses Measurement of Administrator Role for Feedback on Structure and Goals An Experiment in Assessing the Theoretical Recognition and Application Leaning Skills of Student Case Writers Some Game Information Systems Experience Using Job Control Language (JCL) for Group and Individual Simulation Considerations for the Use of Computerized Business Simulations Assessing the Effectiveness of Learning Styles as Predictors of Performance within Three Distinct Pedogogic Methodologies Learning Style and Performance A Psychometric Analysis of Kolb's Learning Styles Inventory Learning to Identify and Satisfy consumer Wants: A Classroom Game An Experiential Exercise in Product Benefit Segmentation Sales and Sales Management: A Case/Simulation Approach The SBI Case as Experiential Learning The Use of a Live Case in Teaching Organization Theory and management Principles to Graduate Students The Residency in Hospital and health Administration as Experiential Learning The Extended Live Case Approach to Teaching Marketing Research Experiential Learning in Marketing: Student Consultants The Brazil-Columbia Coffee Marketing Negotiations: An Experiential Exercise Aimed at Highlighting the Dynamics Involved in the International Business Negotiation Process Educational Values of Simulation Gaming Business Simulation Re-Revisited Simulation and Experiential Learning as Human Subject Research An Experiential Evaluation of a Didactic - Experiential Apporach for Teaching personnel Management Experiential Learning in Wage and Salary Administration Integrating Structured Experiences into Personnel Simulation Locus of Control and Performance in a Management Simulation Correlations Between Academic Achievement, Aptitude, and Business Game Performance Suggestions for Student Input of Decisions in General Management Simulations An Exploratory Investigation of Student Perceptions of Computer Simulation as an Educational Tool Time to Sell?: An Experiential Learning Approach to Stock Market Decisions through Interactive Gaming