What does this mean that the ESOP, will allow room for some other activities which will result in the company gain. This is the whole question behind it and the process of motivation in the planning of stock ownership and offering this to the employees. When the employees are offered this ownership of stock or shares of the company, now they are the owners of the company. On one side when they are given with the privilege of being the owner of the company to some part as their bonus, they are also being given some heavy responsibilities on their shoulders. This responsibility is called the responsibility of the ownership. As the employee now owns the company even to a miniature extent, he will still do the effort and work harder and will remain loyal to the company. This will help in the company gain as well as the gain in motivational levels of the employee.
January 27, 2012
