Psychological Ownership
Psychological Ownership
How psychological ownership and employee ownership are mutually reinforcing
The other day I came across the term psychological ownership (PO), which refers to a deep sense of ownership that individuals feel towards an organization or job. It encompasses a personal commitment and investment in the organization that leads to the feeling of having a stake in its success. The concept, however, can also be applied to intangible elements such as ideas or roles. To put it simple, psychological ownership explores how individuals’ behaviors and attitude are influenced when they perceive themselves as having an ownership stake.
After doing a bit of research on the term, I found a paper by the Oxford Saïd Business School titled, “Psychological Ownership: Effects and Applications.” It laid out a few crucial aspects:
The Origins of Psychological Ownership: Psychological ownership often develops through employees’ learning about the organization and investing significant time and effort into it. This investment manifests itself in several forms such as a deeper engagement, commitment towards the company’s goals, and personal contributions to its overall success.
The Positive Outcomes: Psychological ownership is also strongly associated with positive organizational outcomes. It often leads to increased motivation, heightened company stewardship, and proactive behavior that contributes to the company’s success.
The Negative Outcomes: Despite its benefits, they also listed negative effects. For example, it can lead to territorial behavior where employees become too protective over their roles and contributions which could impede collaboration.
Why Does This Matter?
The concept of psychological ownership closely intersects with employee ownership. In employee-owned companies, the legal ownership of shares or equity is complemented by the psychological sense of ownership employees experience. This dual aspect can enhance the positive effects seen in psychological ownership alone.
Both employee ownership and psychological ownership can significantly empower employees by enhancing inclusivity and engagement. Organizing regular team meetings where employees can voice their opinions and contribute new ideas, in return can heighten their sense of ownership. When employees experience both employee ownership and psychological ownership, their engagement is also strengthened. They are not only motivated by the financial rewards of employee ownership but also inspired by the emotional commitment fostered by psychological ownership.
What to Read Next:
Avey, James B., et al. “Psychological Ownership: Theoretical Extensions, Measurement and Relation to Work Outcomes.” Journal of Organizational Behavior, vol. 30, no. 2, Feb. 2009, pp. 173–191, https://doi.org/10.1002/job.583.
Dawkins, Sarah, et al. “Psychological Ownership: A Review and Research Agenda.” Journal of Organizational Behavior, vol. 38, no. 2, 12 Oct. 2015, pp. 163–183, https://doi.org/10.1002/job.2057. Accessed 11 Apr. 2019.
Zhang, Yucheng, et al. “Psychological Ownership: A Meta-Analysis and Comparison of Multiple Forms of Attachment in the Workplace.” Journal of Management, vol. 47, no. 3, 4 May 2020, pp. 745–770, https://doi.org/10.1177/0149206320917195.