Employees Stock Options (ESOPs) - retain the employees

Employees Stock Options (ESOPs)
This is the latest trend in the industry. This is a very important tool in knowledge intensive industry like Information Technology etc. Here the greatest assets are the employees and their knowledge. The organisation loses on this if the employee were to leave. So in order to retain the employees they are offered direct participation in the form of shares of the company. This is called as Employee Stock Options(ESOPs).
Human Resource Accounting
This is a concept where employees and their knowledge are treated as assets of the company and a value is attributed to it. This value is also reflected in the balance sheets of the company.

hi
I like to add up with the current information
there are various types of ESOP's which differ from organisation to organisation.
there is an website which gives information about the employee stock options.
http://www.nceo.org/pubs/esopcommittee.html
with regards
jayavel.k

esop may be successful at point of time. but it was not consider as great strategy for retention and motivation for lower level or lower exectcutive level./ where the salary they get itself little. it may be good one for top management people.. so esop is called as a fab by many articles...
but human resource accounin a is a new concpet to tell that their employees are their greatest strength.....

I am familiar with Employee Stock Option Plans (ESOP) insofar as a client used it as a proposal during labor contract negotiations. It was designed to be an incentive, and compensation, where the company was struggling with cash flow and needed the employees to be more innovative and efficient.
Unfortunately, the employees ("new owners") did not see the benefit of ownership and continued in their old ways. After two(2) years, the company went bankrupt.
ESOP's used to be a "hot button" in the States, but I don't hear much about them anymore.