Introduction
Employees’ productivity and performance are essential in the current highly competitive global economy. Several studies have linked employee performance to their motivation. This study seeks to analyze the contribution of employees’ ownership schemes to their motivation, productivity, and performance.
Brief Summary of Theoretical Framework
Incentive Theory of Motivation
Hossain & Urme (2022) define the incentives theory of motivation as a behavioral theory that argues that incentives and reinforcement drive employees’ motivation. The workers tend to behave in a manner they feel will result in rewards and avoid actions that might result in punishment. Coccia (2019) argues that employee ownership trust, which can be used as part of the reward system, helps motivate employees. Determining the rewards and punishments influences workplace behavior. Employees who are part of the company are likely to perform better as they care much about the organization’s welfare.
Maslow’s theory of motivation
Dohlman et al. (2019) note that Maslow’s theory of motivation is based on the fact that human motivation is a foundation of people seeking self-fulfillment and change through self-growth. The theory’s proponents believe there are five sets of needs that each worker must fulfill to be happy, complete, and fully satisfied. The five stages of the theory are physiological needs, safety needs, love and belonging needs, esteem needs, and self-actualization needs. Genkova (2021) notes that employee ownership schemes relate to most of the stages of Maslow’s theory of motivation. For example, when the employees own part of the organization, they feel like part of it, and therefore, the love and belonging needs are met. Further, having shares in the organization makes the employees feel safe and improves their esteem.
Needs for the Research
Organizations are currently facing stiff competition in the changing global economy, especially due to increased trade liberation. Therefore, organizations must look for ways to survive in the global economy. Part of the survival techniques is increasing the productivity and performance of the firms. Employees are among the most critical factors in determining productivity and performance. Therefore, Managers and business owners are highly interested in understating employees’ behavior and measuring factors that motivate them. Employee ownership schemes are one of the suggested ways of motivating employees. Since it is costly, it is essential for adequate research to be conducted to determine whether the scheme is effective in motivating employees and enhancing performance and productivity.
Relationships to be considered
- The relationship between employees’ ownership scheme and employees’ motivation.
- The relationship between employees’ motivation and performance and productivity.
- The relation between other factors of production and performance and productivity.
Contribution of Proposed Research
Numerous studies have proved that employee ownership is directly associated with better company performance. However, more studies must be conducted to evaluate the mechanisms linking employee ownership to performance. In addition to determining whether the employee’s ownership scheme is effective, this study will examine the causal effects. The corporate governance issues under the scheme will also be studied, including the problem of overcompensation of managers and decision-makers in the organization. The study will look at the financial implications of implementing such a scheme and conduct a cost-benefit analysis to advise managers on adopting the motivation tool.
Conclusion
Several studies have linked employees’ motivation to performance and productivity. Employee ownership schemes are one of the suggested ways of motivating employees. This study seeks to evaluate the effectiveness of the schemes in enhancing overall performance and productivity. The study further looks at the mechanisms linking the scheme to performance and the financial implications of the approach.
References
Coccia, M. (2019). Intrinsic and extrinsic incentives to support motivation and performance of public organizations. Journal of Economics Bibliography, 6(1), 20-29.
Dohlman, L., DiMeglio, M., Hajj, J., & Laudanski, K. (2019). Global brain drain: how can the Maslow theory of motivation improve our understanding of physician migration? International journal of environmental research and public health, 16(7), 1182.
Genkova, D. (2021). Modeling of the human needs: An economic interpretation of Maslow’s theory of motivation. WSEAS Transactions on Business and Economics, 18(26), 253-264.
Hossain, M. Z., & Urme, U. N. (2022). Impact of Incentive Programs on Organizational Growth: A Case Study. ABC Research Alert, 10(1), 17-30.