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The Impact of Large-scale Employee Share Ownership Plans on Labour Productivity: The Case of Eircom.

McCarthy, D. and Palcic, D., 2012. The Impact of Large-scale Employee Share Ownership Plans on Labour Productivity: The Case of Eircom. International Journal of Human Resource Management, 23 (17), 3710-3724.

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DOI: 10.1080/09585192.2012.655762


Large-scale Employee Share Ownership Plans (ESOPs) have been a distinctive characteristic of Irish public enterprise reform, with shareholdings of 14.9 per cent being allocated to employees as part of firm restructuring and privatisation programmes. This paper presents a case study analysis of a large-scale ESOP in Eircom, Ireland’s former national telecommunications operator. We identify changes in labour productivity during the eight years before and after the establishment of the company’s ESOP and use a framework based on Pierce et al. (2001, 1991) to explore the role played by the ESOP. The ESOP was found to play a key role in enabling firm-level reform through concession bargaining and changes in employee relations, and thereby indirectly affecting labour productivity. However, despite the substantial shareholding and influence of the ESOP, we find it has failed to create a sense of psychological ownership among employees, and thereby further impact on productivity

Item Type:Article
Uncontrolled Keywords: broad-based stock options, employee share ownership, employee share ownership plans (ESOPs), labour productivity, privatisation, public sector reform
Group:Bournemouth University Business School
ID Code:20405
Deposited By: Mr Dermot McCarthy
Deposited On:05 Sep 2012 10:33
Last Modified:14 Mar 2022 13:45

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