TY - JOUR
T1 - Employee stock ownership plans
T2 - issues and evidence
AU - Aitken, Michael J.
AU - Wood, Robert E.
PY - 1989
Y1 - 1989
N2 - Employee stock ownership schemes have been gaining increased attention in Australia. Recent statements by the opposition federal coalition concerning their industrial relations policy, as well as initiatives by the employee ownership lobby, have contributed to the re-emergence of the idea of employee owned or managed business enterprises as a viable form of organization. However, unlike the situation in countries such as the United States and the United Kingdom, the taxation laws in Australia do not provide any real financial advantages for either sponsoring companies or participating employees. A review of analytical models shows that employee stock ownership plans are hypothesized to affect the motivational states, morale and job effort of participating employees and that these effects are expected to lead to improvements in organizational performance and reductions in absenteeism, turnover and grievances. Available evidence, from a variety of countries, shows only limited support for the hypothesized motivational and organizational performance effects. The implications for the adoption of employee stock ownership plans by Australian organizations are discussed.
AB - Employee stock ownership schemes have been gaining increased attention in Australia. Recent statements by the opposition federal coalition concerning their industrial relations policy, as well as initiatives by the employee ownership lobby, have contributed to the re-emergence of the idea of employee owned or managed business enterprises as a viable form of organization. However, unlike the situation in countries such as the United States and the United Kingdom, the taxation laws in Australia do not provide any real financial advantages for either sponsoring companies or participating employees. A review of analytical models shows that employee stock ownership plans are hypothesized to affect the motivational states, morale and job effort of participating employees and that these effects are expected to lead to improvements in organizational performance and reductions in absenteeism, turnover and grievances. Available evidence, from a variety of countries, shows only limited support for the hypothesized motivational and organizational performance effects. The implications for the adoption of employee stock ownership plans by Australian organizations are discussed.
UR - http://www.scopus.com/inward/record.url?scp=84970199680&partnerID=8YFLogxK
U2 - 10.1177/002218568903100201
DO - 10.1177/002218568903100201
M3 - Article
AN - SCOPUS:84970199680
SN - 0022-1856
VL - 31
SP - 147
EP - 168
JO - Journal of Industrial Relations
JF - Journal of Industrial Relations
IS - 2
ER -