Employee Ownership and/or Profit Sharing as an Effective Tool for Motivating Employees

Introduction
Research has shown that employee ownership can improve motivation as well as company performance, but only under certain conditions. The challenge is to determine what those conditions are. Since motivation is a key factor then we need to also look at the psychological perspective. The psychological perspective assumes that the way people interpret ownership has a more direct impact on company performance than legal structures or vision statements do.
The most common obstacle to the success of the ownership incentive is failure to properly educate the work force. …