PERSONAL INVESTMENT THEORY

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PERSONAL INVESTMENT THEORY

• Damon Burton
• University of Idaho

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PERSONAL INVESTMENT THEORY HISTORY

• Maehr Braskamp (1994) applied Achievement Goal
  Theory (AGT) to business
• Identified 8 major goals that define success and
  failure in business
• Developed the Inventory of Personal Investment
  (IPI) to measure key components of the theory.

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PERSONAL INVESTMENT

• Investment is a business-oriented term for
  motivation.
• Individuals may have multiple incentives or
  goals that they are trying to attain in any
  business situation.
• Incentives interact with (a) sense-of-self
  variables that define traits that influence
  motivation, and (b) perceived options or the
  other alternatives you have to meet important
  incentives.
• The importance of different investment options
  may vary according to situational and contextual
  factors.

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MEANING CORE OF PERSONAL INVESTMENT
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FACTORS COMPRISING INFLUENCING MEANING
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PERSONAL INCENTIVES

• Personal incentives are business-oriented terms
  for goals.
• Individuals may have multiple incentives or
  goals that they are trying to attain in any
  business situation.
• The more incentives individuals are striving to
  attain in a situation, the generally higher the
  motivation and the more resilient to failure and
  adversity.
• The importance of different SOS variables may
  vary according to situational and contextual
  factors.

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8 PERSONAL INCENTIVES

• Competition,
• Power,
• Excellence,
• Task Involvement,
• Affiliation,
• Social Concern,
• Recognition, and
• Financial Rewards.

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8 PERSONAL INCENTIVES

• Competition gaining satisfaction feeling
  positive about yourself when you win.
  Competitive like to win.
• Power seeking out enjoying positions of
  leadership authority. Confident working with
  others and trust intuitions in making judgments.
• Excellence continually thinking of ways to
  improve, working hard enjoying solving
  problems.
• Task Involvement totally involved in what they
  are doing, regard work as exciting fun, like
  challenges and enjoy solving challenging
  problems.

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8 PERSONAL INCENTIVES

• Affiliation liking to be in the company of
  friends, enjoy helping others, and are friendly,
  trusting and show affection for others.
• Social Concern gain satisfaction by sacrificing
  personal gains for others, committing themselves
  to social and civic causes and follow golden
  rule.
• Recognition want recognition for what they do
  work harder when receiving recognition. Want
  respect from co-workers, and do best work when
  others encourage them and praise them.
• Financial Rewards value money, seek positions
  that provide bonuses and extra income. Money is
  an indicator of success monetary rewards prompt
  best work.

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SENSE-OF-SELF VARIABLES

• Sense-of-self (SOS) variables are personality
  traits that influence motivation.
• Individuals may be strong on some SOS variables
  and weak on others.
• The more SOS variables that are strong, the
  generally higher the motivation and the more
  resilient to failure and adversity.
• The importance of different SOS variables may
  vary according to situational and contextual
  factors.

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3 SENSE-OF-SELF VARIABLES

• Competence,
• Self-Reliance, and
• Goal-Directedness.

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3 SENSE-OF-SELF VARIABLES

• Competence determined by (a) consistently
  achieving ones goals (b) taking credit for
  that success as indictive of ones skills or
  personally desirable attributes.
• Self-Reliance -- taking responsibility for
  pursuing and achieving ones goals.
• Goal-Directedness consistently
  enthusiastically pursuing ones chosen goals.

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PERCEIVED OPTIONS

• Perceived options are a way to operationalize
  alternate choices or goal opportunities.
• Individuals may have different types of perceived
  options in different situations.
• The more perceived options, the generally lower
  the motivation for the task at hand and the less
  resilient one is towards failure and adversity.
• The importance of different perceived options
  vary according to situational and contextual
  factors.

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2 PERCEIVED OPTIONS

• Organization advancement, and
• Marketability.

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2 PERCEIVED OPTIONS

• Organizational advancement extent to which
  employees feel that they can advance in the
  organization are not stuck in their current
  jobs.
• Marketability extent to which employees
  perceive that they can find good alternative jobs
  or career opportunities and feel positive about
  their future.

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MERCANTILISTS VERSUS ACADEMICS
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COLLEGE VS UNIVERSITY FACULTY
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HIGH ACHIEVERS VERSUS EVERYONE ELSE
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ENHANCING PERSONAL INVESTMENT

• Person-focused strategies
• Job-focused strategies
• Organization-focused strategies

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PERSON-FOCUSED STRATEGIES

• Selecting motivated people
• Placement of putting the right person in the
  appropriate job
• Developing new goals and sense-of-self variables
  in individuals.

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JOB-FOCUSED STRATEGIES

• change job itself
• change larger organizational network in which the
  job is performed
• social aspects
• inherent attractiveness
• evaluation

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ORGANIZATION-FOCUSED STRATEGIES

• establishing communicating a mission
• establishing salient goals
• concern for individual in the organization
• delegate power
• identify and reward excellence

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WHICH INCENTIVES ARE MOST HELPFUL?

• Which of these personal incentives are more
  personally controllable and thus make success
  easier to attain?
• Which personal incentives are less personally
  controllable and thus make success harder to
  attain?

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• Use Personal Investment Theory to profile Brett
  Favres motivation to play football for the
  Minnesota Vikings next season.

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• THE END