Employee Stock Option Plan has been regarded as one of the chief motivating factors forthe employees of a company, but the same could act as a complacency factor too. Thisarticle examines the impact of employee stock option on the organization.

Organizations often implement employee stock ownership initiatives with the expectation that they will both provide an appealing employee benefit and improve organizational performance by motivating employees to promote their shared financial interests with the organization. Although research suggests that employee ownership is positively related to employee attitudes and organizational performance, the psychological processes that explain the relationship between employee ownership interventions and organizational effectiveness are not well understood. Studies have revealed that effective employee ownership initiatives result in employees feeling as if they are owners of the business, an experience that has been termed psychological ownership. Studying psychological ownership may be important for understanding how employee ownership initiatives impact aspects of organizational effectiveness.

Employee-Stock,Option-Plan,Organizations,employee-benefit, organizational performance, financial interests, organizational performance, psychological ownership, complacency factor, extensive knowledge ,Management practices , self-determination.