Effect of Employee Stock Ownership Plans (ESOPs) on theperformance of Small business in Karachi
Keywords:
commitment, employee turnover, profitability, motivationAbstract
This paper examines the impact of employee stock ownership plans on the overall performance of the
organizations. From the five decades literature, the conceptual underpinning formed includes variables of interest
namely; employees' motivation, job commitment, employees' turnover, and productivity/profitability of the firms.
The paper follows positivist philosophy with deductive approach to gain numerical significance. Total 280
respondents targeted using c ombination of probability (random) sampling and non non-probability (convenience and
snowball) sampling techniques. The statistical tests, which are used to test the hypotheses, are regression and
correlation. Results showed that they exists statistically sign ificant correlation between ESOPs and overall
performance of the organization. Interestingly, the nature of relationship is positive but the strength is moderate
to weaker. Employees' turnover has moderate positive significant correlation (r=. 541, p < a, 0.000 < 0.005)
while all others have weak positive weak significant correlation with ESOPs. Based on findings, the managerial
implications are discussed at the end of the paper to enhance organizational performances.
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