Employees that think and act like owners: Effects of ownership beliefs and behaviors on organizational effectiveness

A model of the psychological experience of employee ownership in work groups was developed to investigate antecedents (participation in a 401(k) program and a climate of self-determination) and consequences (employee attitudes and financial performance) of psychological ownership. Based on data from a large retail organization, results showed that working in a climate supporting self-determination and 401(k) participation were positively related to the level of ownership beliefs in the 204 work groups studied. Ownership beliefs were positively related to ownership behaviors and employees' attitudes toward the organization, whereas ownership behaviors were positively related to financial performance. Implications of psychological ownership for organizational behavior and performance are discussed.