The relationship between employee ownership, motivation, and productivity was explored. The main data collection activities were as follows: (1) a literature review; (2) interviews with management and employees from 10 selected companies across the United Kingdom; (3) surveys of ICOM (the federation of worker cooperatives) member companies and their employees; and (4) focus groups with employees at 7 of the 10 companies originally visited. The study findings supported the following conclusions: (1) employee ownership alone does not make a difference in employee's job performance; (2) combining employee ownership with high levels of employee participation yields positive performance outcomes; (3) employee share ownership programs and representative participation in wider policy decisions are positively associated with high organizational performance; (4) it is highly probable that employee participation impacts employee performance indirectly by influencing employee (and management) attitudes and behavior, which in turn affects internal performance and (eventually) profitability; and (5) employee attitudes toward the job and company are critical to employee loyalty and behavior toward customers. The reasons why employee share ownership has not been adopted more extensively in the United Kingdom were discussed. It was emphasized that sustaining employee share ownership over the long term requires continued institutional support that has never been developed in the United Kingdom. (Contains 29 references.) (MN)