This article embeds employee ownership within a strategic human resource management (SHRM) framework, and in so doing, aims to redress in part a lack of attention in previous employee ownership and SHRM literatures. The study extends the configurational approach to SHRM to include the construct of the workforce philosophy as the factor that determines the coherence of HRM systems. Companies that have employee ownership as a central element and core HRM practice should do two things in order to ensure that their HRM system is coherent and potentially a high-performance work system (HPWS). First, these firms should propagate the idea that employees deserve to be co-owners and take employees seriously as such. Second, the HRM system should reflect this workforce philosophy: the HRM system should contain HRM practices that mirror the rights that make up the very construct of ‘ownership’. The core HRM practices of the ‘ownership-HPWS’, in addition to employee ownership, are: participation in decision-making, profit sharing, information sharing, training for business literacy and mediation.

Employee share ownership involves employees acquiring shares in their employer so that they become shareholders. It takes a variety of forms, some of which may have greater significance and effects than others. The extent to which employees possess profit sharing, information, and participation rights varies considerably. This variety means that generalizations about employee share ownership have to be made with caution, as becomes evident in this article. The article provides more details of the various types of employee share ownership plans, before providing information on the incidence of employee share ownership. It examines the factors associated with the use of employee share ownership plans by companies (‘determinants’). The article also reviews the extensive literature on the effects of employee share ownership on attitudes, behaviour, and performance.

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This chapter addresses employee ownership within a strategic human resource management (SHRM) framework that has gained increased attention. The study extends the configurational approach to SHRM and argues that the construct of the workforce philosophy is the primary factor that determines the coherence of HRM systems. In other words, the workforce philosophy propagates the idea that employees both deserve to be co-owners and must be taken seriously as such. In addition, the chapter argues that the HRM system should reflect this workforce philosophy: the HRM system should contain HRM practices that mirror the rights that comprise the very construct of "ownership." We present the possible core HRM practices of the "ownership high-performance work system (O-HPWS)," which, similar to employee ownership, produces favorable outcomes. The chapter also addresses the important mediating role of employees' perception and Sharing in the Company: Determinants, Processes and Outcomes of Employee Participation Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Volume 17, 5À22

Tight labour markets and changing employment relationships make employees with high levels of firm-specific knowledge, skills, and abilities less dependent on and committed to their employer. Companies need to work harder in order to attract and retain employees and protect their mutual human capital investments. Using a dataset with survey data from employees in 11 companies (N = 777), the present study shows evidence that employee share ownership, provided that it is taken seriously as reflected by the presence of a small number of other HRM practices in the company, might be a worthwhile avenue for managers to explore.