The Effect of Enabling Controls on Learning-by-Doing

Abstract

Firms use behavioral controls to help employees allocate their attention effectively across dimensions of a complex task, thereby facilitating learning-by-doing. Since behavioral controls are imperfect, firms may grant employees access to the underlying control logic (transparency), allow temporary overrides of control decisions (overriding), or permit permanent changes to control settings (repair). We investigate whether combining these enabling attributes (transparency with overriding or repair) enhances employee learning. Using an experimental design, we find that transparency combined with repair enhances learning. However, transparency combined with overriding does not, because repeatedly overriding control mistakes imposes an ongoing cognitive burden. Specifically, transparency paired with repair frees employees from constantly identifying and correcting the same control mistakes, allowing them to focus on the noncontrolled dimension of the task. Consequently, employees can master that dimension more effectively, improving overall learning and performance.

Keywords: Enabling Control, Behavioral Control, Learning-By-Doing