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Psychological Ownership

An individuals’ feeling of having a stake in the organization as a result of commitment and contribution

Psychological Ownership of a job or organization by an employee is a feeling of having a stake in it as a result of commitment and contribution. It has been shown to be directly associated with a range of positive behaviors including increased motivation, innovation, engagement, stewardship, and loyalty - but it comes at a cost. It requires reciprocity between organization and employee. Employees do not need to have formal ownership of the organization, but they must have ownership over their own decisions. By increasing autonomy, aligning individual and collective interests, enabling information sharing and sharing the burden of failure, organization can foster a culture of ownership and harvest its benefits.

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