The impact of privatization and employee share ownership on employee commitment and citizen behaviour

Abstract

Based on a survey of employees in a large telecommunications company, this article examines the means through which privatization, accompanied by an Employee Share Ownership Plan (ESOP), impact on employee commitment and organizational citizenship behaviour. The findings show that although the ESOP has in some way moderated outcomes, privatization has had negative consequences for commitment. Despite this, 50 percent of respondents report an increased level of citizenship behaviour. In determining changes in employee commitment and behaviour, it was found that an important role is played by how employees perceive changes in conditions of employment, involvement in workplace decision-making and management—union collaboration.