The Applicability of performance based employee share ownership plans for the motivation of junior management level employees in service sector organizations in Sri Lanka

Abstract

The contribution of workforce management professionals has become increasingly important with the growing ascendancy of Human Resources Management (HRM) in its various symptoms. People having different intentions so employers can get best from their employees while providing effective benefits. Employee Share Ownership Plan (ESOP) is a form of employee financial participation that presents on the right of employees to share in the capital of the company and, right to exercise some degree of control over company affairs. Researchers’ approaches seem to be more descriptive and confined within the limits of implementation ESOPs in difference industries. Most of them mainly, addressed ESOP concepts and the applications of ESOPs in different economic conditions. However, minimum attention has been given to the necessity of use of ESOP as a motivational tool to enhance its productivity. Thus, this study explored the applicability of performance based ESOP to the motivation of junior management level employees in organizations in Sri Lankan. This research problem was approached through case studies of three sendee sector organizations, which have implemented ESOP. Semi-structured interviews were conducted with experts and questionnaire survey was carried out during the data collection. According to the findings, only senior employees get benefits from ESOP and the used criteria for ESOP were not rational therefore, its contribution for enhancing employee performance is less.