Employee Ownership is a conception that has different meanings. In all cases it is considered as a powerful management tool. Employee ownership is associated with the following concepts:
- Employee Ownership means making employees the shareholders of companies which they work for. Share options are usually provided as benefits to those workers who are critically important to the company, or to the top managers. There are different types of ownership plans proposed by companies to their employees, depending upon specific corporate policy, size of a company, years of employee service, etc. Making a business co-owned by the employees (whether selling or granting a share) is a sign of respect and a way to motivate their excellent performance.
- Employee Ownership may mean responsibility and self-amenability of employees for their tasks and results. If a worker shares ownership upon some results, then this worker is independent (to certain degree) in his or her actions to obtain them: this employee will benefit from success as well as suffer from a loss if work is failed. Sharing of ownership with the employees may mean using the performance-related system of remuneration, along with providing them with more of operative freedom.