ABSTRACT
This chapter aims to focus the regulatory theory, proposed by E. T. Higgins was utilized in an attempt to explain why certain people prefer to be self-employed and others prefer to be organizational employees. It presents preferred job characteristics as well as actual job-related stressors for self-employed and organizational workers. Based on the Person–environment fit theory it was hypothesized that individuals who prefer to be self-employed will prefer job characteristics associated with autonomy whereas individuals who prefer to be organizational employees will prefer job characteristics associated with security. The chapter suggests a theoretical model that may explain why certain individuals prefer to be self-employed, while others are willing to compromise and sacrifice in order to be organizational employees. The model also explains differences in preferred job characteristics and job-related stressors between self-employed workers and organizational employees. A significant relationship was found between regulatory focus and preferred occupational status.
