The impact of personality variables on participative management systems has been a subject of considerable current interest to researchers. The effect of locus of control on the relationship between participation and performance of subordinates in a participative budgeting environment was recently examined by Brownell. This study examines the participative relationship between superiors and subordinates. The findings of a laboratory experiment indicate that locus of control also may influence the behavior of superiors involved in the participative budgeting process in accepting the inputs of their subordinates. The results of this experiment support the hypothesis that internal managers are willing to allow subordinates greater participation than are external managers.

[The impact of personality variables on participative management systems has been a subject of considerable current interest to researchers. The effect of locus of control on the relationship between participation and performance of subordinates in a participative budgeting environment was recently examined by Brownell. This study examines the participative relationship between superiors and subordinates. The findings of a laboratory experiment indicate that locus of control also may influence the behavior of superiors involved in the participative budgeting process in accepting the inputs of their subordinates. The results of this experiment support the hypothesis that internal managers are willing to allow subordinates greater participation than are external managers.]