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).