Economic Explanation And Operation Mechanism Of Psychological Ownership

Theory of psychological ownership provides a new perspective to motivate the employees. Psychological ownership is the psychologically experienced phenomenon in which employee develops possessive feelings for the target. The legal ownership takes the impact on employees'attitudes and behaviors through psychological ownership. To better understand the economic basis of psychological ownership, we proceed from the nature of the employment relationship as the perspective of incomplete contracts to study the formation and role of psychological ownership mechanisms. In addition, the theory of psychological ownership in Western is developed in the context that modern enterprise system is perfect and the legal ownership is full-developed. However, it is not the case in China. Our country is still in the fuzzy property boundaries and in the absence of legal ownership. In such situations, will the psychological ownership take place is the question which we need to think about and discuss. Based on data from local companies we get the important conclusions:Firstly, the corporate factors have no significant impact on the psychological ownership. There is no significant difference between state-owned enterprises and private enterprises. Secondly, the different individual variables have different effects on psychological ownership. Lastly, the psychological ownership will have a significant positive impact on the employees' attitudes and behaviors of employees, and the variables of attitudes are the intermediary variables between psychological ownership and the variables of behaviors.This theoretical analysis and empirical analysis give us some suggestive conclusion. Firstly, the reference point of whether the psychological ownership takes place is the incomplete contract between employees and enterprises, and contractual agreements between both sides have impact on attitudes and behaviors of the staff through psychological ownership, following affect business performance. Therefore, the optimal contract is designed to enable employees to produce psychological ownership satisfaction, and thus stimulate a positive attitude and behavior of employees. Secondly, nature of psychological ownership as companies have no significant impact, therefore, although in most private enterprises, the ownership and control are owned by one person, psychological ownership of employees still emerge, which provide a new perspective of research and practice. Thirdly, this theoretical analysis and empirical analysis indicate that psychological ownership on employee attitude and behavior will have a positive impact, and attitudinal variables in the ownership of the role of psychological mechanisms play an intermediary role. Therefore, management should focus on mental training and increase employee ownership. In addition to the formal ownership of the rational arrangement and distribution, the business managers should establish the corporate culture in which the organizational commitment, job satisfaction and organizational self-esteem are formed and strengthened.Innovation of this paper includes three main points:Firstly, from an economic point of view, we research the emergence of psychological ownership, the nature of the employment relationship to discover the essence of psychological ownership characteristics and mechanism of action. Psychological ownership is a business and incomplete contract between employees as a reference point, the contract design determines whether the production of psychological ownership and satisfaction, have impact on the attitude of staff, and further affect their behavior choices. Secondly, based on data on local businesses, the paper studies the ownership of the Chinese context of the current situation. Empirical studies suggest that either in West or in China, psychological ownership is widespread. Even in the vague definition of property rights in Chinese enterprises, psychological ownership plays an important role. Thirdly, based on theoretical analysis and empirical research this paper proposes the mechanism of psychological ownership. The variables of employee attitudes played an intermediary role between psychological ownership and behaviors. This reveals managers to establish the corporate culture which contributes to strengthen organizational commitment, job satisfaction and organizational self-esteem.This article is divided into four chapters. Chapter 1 is an introduction. This part introduces the research background, meaning, Current Research, research methods and innovations, etc. Chapter 2 is the economic interpretation of psychological ownership. Based on the theory of incomplete contracts; we research the nature of the employment relationship and mechanisms. Chapter 3 is empirical analysis of relations between psychological ownership and employee attitudes and behaviors. This chapter during the questionnaire design was based on the local Chinese employees on the psychological level of values and attitudes of the ownership variables, behavioral variables of the data, the basis of empirical analysis of corporate and personal factors on the psychological impact of ownership, psychological ownership and the relationship between employee attitudes and behavior, empirical studies suggest that psychological ownership of our assumptions about basically set up to verify the psychological ownership and employee attitudes and behaviors positive correlation between the variables. Chapter 4 is the inspiration and advice. This chapter on the theoretical analysis and empirical analysis of the results of the analysis draw some revealing conclusions and puts forward to improve levels of psychological ownership.