Digitalization and Employee-Oriented Leadership: The Importance of Locus of Control for HR Policy

As management seeks orientation in this turmoil, the debate about “good” leadership is coming into its own again. Traditional leadership models and styles no longer seem suited to the volatility and uncertainties of the digital age and are increasingly being called into question. This transformation is impacting on managers, whose leadership is having to be more flexible, more adaptable and – not least due to the shortage of skilled labour – (even) more employee-oriented. The present analysis therefore focuses on personality traits and especially on employees’ locus of control – that is to say, their belief in their ability to influence their situation. The authors’ aim is to identify, both theoretically and empirically, the form of leadership best suited to a given type of employee in a given situation. Their main conclusion is that workers with an internal locus of control contribute more, and more effectively, to overcoming professional challenges and are better equipped to do so than those with an external locus. With the appreciative, employee-oriented leadership outlined here managers can increase job satisfaction and economic success.