Employee Ownership INTRODUCTION Questions continually a

Questions continually arise with respect to employeeowned businesses concerning the effects employeeownership on the operational and financial performance of such enterprises. Assumptions are often made in the affirmative with respect to such questions because it is thought that employees work harder when they are owners. These assumptions create a problem because definitive assessments concerning the assumptions are not widely available. This problem was investigated in this research study. The problem statement/purpose, problem background, research questions, operational definitions, dependent and independent variables, definition of technical terms, hypotheses, scope and limitations, and general procedures applicable to this study are covered in this chapter.

The motivation of employees and the improvement of productivity are topics which have generated significant levels of interest for management, labor, government, and academia for several decades. One of the many approaches employed as a means of enhancing both motivation and productivity is one that is based on profit sharing between an organization and its production employees. It should be noted, however, that the profit sharing concept has never been widely implemented with respect to production employees by large North American corporations.

The profit sharing concept may be employed in several ways. Probably the most common application found in the United S

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mance of employeeowned firms are motivation and economic concentration. Motivation is a widely studied dimension of behavior and performance within organizational environments. Motivation is personspecific, although it concerns both individuals and organizations. Although many approaches to the motivation of individuals within organizations have been advanced, implemented, and discarded over the years, two have fairly well stood the test of time. These two are Maslow's hierarchy of needs and Herzberg's twofactor theory. Maslow divides individual needs into higherorder needs and lowerorder needs. The lowerorder needs, such as hunger, thirst, and security are the strongest; however, they are also the ones which are most likely to have been met within an industrial society. Therefore, according to Maslow, it is the higherorder needs, such as love and selfactualization, which provide motivation for individuals in a modern industrial society. Thus, according to Maslow, an organization must provide individuals with opportunities to realize their abilities and ambitions, and their performances must be recognized, if optimal motivation is to occur. Herzberg's twofactor theory differs somewhat from Maslow's hierarchy

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