Employee Perspectives on Stock Ownership: Financial Investment or Mechanism of Control?

A study was conducted to examine the expectations or orientations that employee shareholders bring to their ownership roles. Specifically, it investigated the implications of employee owners who view themselves as investors who are seeking profits but not active participation in decision making. It...

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Bibliographic Details
Published in:The Academy of Management review 1987-07, Vol.12 (3), p.427
Main Author: French, J. Lawrence
Format: Article
Language:English
Subjects:
Decision making
Employee attitude
Employee stock ownership plans
Employee stock purchase plans
Employees
ESOP
ESOT
Influence
Job satisfaction
Stockholders
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Summary:A study was conducted to examine the expectations or orientations that employee shareholders bring to their ownership roles. Specifically, it investigated the implications of employee owners who view themselves as investors who are seeking profits but not active participation in decision making. It was concluded that a financial orientation to ownership by employee shareholders suggests that the number of shares employees own and the value of these shares is more important than ownership per se. It also was concluded that employee owners' satisfaction with the firm and their jobs depends, in part, upon their perceptions of the firm's financial performance and of the effectiveness of other employees. No evidence was found that owner employees would be more satisfied with their jobs than employees without shares. Finally, dissatisfaction may increase efforts by employee owners to influence decision making.
ISSN:0363-7425
1930-3807
DOI:10.2307/258510