Attribution Theory
Like with most things, in order to make money, we first need to get our minds working correctly.
One model that I find very useful when trying to understand human behaviour (including my own) is Attribution Theory. The theoretical framework for this theory was developed by Weiner in the early 80s. To grossly oversimplify the theory and framework (those of you that would like to go more indepth on this can find a wealth of articles with a simple Google search), the Attribution Theory states that our actions and results are determined by the explanations that we attach to the events in our lives.
Any result that we get, whether good or bad, we can attribute either to internal or external factors.
Internal Factors , as their name implies are factors that are inherent to who we are, they include such things as our abilities, moods, personality and the amount of effort expanded. A lot of those can be under our control.
External Factors include such things as the difficulty of the task, luck and so on. They tend to be not under our control.
Research has shown that people who tend to attribute failure or success to things that are under their control (e.g. the amount of effort expanded) tend to become more successful in their tasks, while those that attribute events to things outside their control (e.g. luck, inherent ability, etc) tend not to do so well, possibly because they do not see a way to improve.
In terms of making money (which is the point of this site), this can also be seen. When a project fails to preform to your expectations, you can blame it on factors outside your control (the market, bad luck, the fact that you are “just no good at this”) , which, while it will make you feel a bit better about yourself, will also mean that you will remain stuck.
You can also chose to learn from the experience and accept the things you have done worng (I should have done more research, I should have invested more time…). By this, I do not mean wallowing in self pity, or deciding that you are worthless, just acknowledging what happened and doing things differently.
Interestingly enough, attributing success to internal factors beyond your control (ability, intelligence, etc…) can also have a positive impact on future performance (if you decide that the reason you succeeded at something is your own brilliance, you would tend to work harder next time, in order to preserve your self-opinion)…
Some people are afraid that they will get arrogant if they chose to believe that their successes stem from their inherent greatness. for some people this could be a problem, but the vast majority of us need every boost to our self-esteem that we can get.
[tags]Attribution Theory, psychology, motivation[/tags]
Just learn this attribution theory from you. Thanks for explaining it here and submitted it to my Personal Finance Money Tips carnival.
[...] Ristic explains the Attribution Theory posted at Money Conciousness. I am still thinking about this. I don’t want to blame failure [...]
I like this theory a lot. If you focus on this theory you have a better understanding of the things that are in your power to change and things that you cannot change and thus should not waste any time on.
[...] in just under the wire (thanks to my tardiness), is Attribution Theory by Nenad over at Money Consciousness. Attribution Theory states that our actions and results are [...]
This is a very good way of looking at everything you do in life. The “victim” mentality is all too common these days.
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This is a fantastic post – so many people nowadays prefer to blame luck and wallow in self-pity, instead of realising that they have choices and many things are within their control.
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
Good explanation. Personal responsibility seems to be lacking anymore. Making mistakes and learning is how we grow!
[...] Attribution Theory posted by Nenad Ristic. [...]
[...] Money Consciousness – Attribution Theory [...]
[...] Ristic presents Attribution Theory posted at Money Conciousness. “Some people are afraid that they will get arrogant if they [...]
September 12, 2007 edition of Carnival of Everythi…
Welcome to the September 12, 2007 edition of Carnival of Everything Finance.
We had over 60 really good articles submitted for this edition.
My favorites have “*” on them….
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Nenad Ristic: Attribution Theory. [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Nenad Ristic: Attribution Theory. [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic presents Attribution Theory posted at Money [...]
[...] Ristic writes about getting our minds in order: Attribution Theory posted at Money [...]
[...] anyway.”) there may be a reason. You might be a gifted adult.” Nenad Ristic presents Attribution Theory posted at Money Conciousness. Scott Barlow presents Entrepreneur Profile – Julie Clark posted at [...]
[...] Ristic presents Attribution Theory posted at Money [...]
This attribution theory makes a lot of sense and I personally like ti a lot. Focusing on it lets you have a you have a better understanding of the things that are in your power.
Mindset is very important when it comes to your success – keeping a positive attitude and it will reflect in all that you do.
Carnival of the Entrepreneur – June 2nd 2008…
Welcome to the June 2, 2008 edition of the Carnival of the Entrepreneur. At the Carnival of the Entrepreneur you will find articles submitted by authors from all over the internet relating to anything associated with being an entrepreneur. Topics range…
I believe this theory. It is indeed a fact.
Gosh, I never thought that in making money, we need to deal with these kind of scientific things.
It’s brilliant though.
Theory posted at Money Consciousness. I am still thinking about this. I don’t want to blame failure.
i never hear before anything about Attribution Theory, thanks for teaching us and sharing all those knonwes with us
I completely agree with you. Luck doesn’t exist; you make your own luck. So don’t let you go in the live, drive your own.