The effects of employee ownership upon work attitudes : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Psychology at Massey University

Abstract

The present study explores the role of employee ownership in increasing positive work attitudes in New Zealand companies. In particular, the study examines the extent to which employees view their stake in the company as a purely financial investment as opposed to an opportunity to assume more control and influence within the organisation. Questionnaires regarding attitudes toward the company and to the company share scheme were completed by 156 subjects from two organisations, one a small goods company, and the other a financial institution. Participants who owned shares in their company (n = 33) reported higher organisational commitment and job satisfaction, and lower turnover intention, than those who did not own shares (n = 123). However, none of the differences between owners and non-owners were found to be significant. Those who did hold shares showed a significant positive correlation between share scheme satisfaction and organisational commitment and job satisfaction, and a significant negative correlation between scheme satisfaction and turnover intention. Shareholders who were satisfied with the financial return on their investment were more likely to want to buy more shares if offered them in the near future. The results indicate that, when employees are given no extra influence over their job as a result of owning shares in the company, the financial benefits gained from ownership are not sufficient to create more positive attitudes toward the organisation. It is concluded that successful share ownership schemes require a corresponding increase in employee decision-making participation. Findings are contrasted with those of overseas studies and recommendations are made for longitudinal research which addresses the effects of employee ownership upon organisational culture and power distribution.